Want to be your own boss? A franchise or business opportunity may sound appealing, especially if you have limited resources or business experience. However, you could lose a significant amount of money if you don't investigate a business carefully before you buy. By law, franchise sellers must disclose certain information about their business to you, the buyer. This guide provides helpful advice on buying and evaluating a franchise and information on how to avoid common scams.
The Federal Trade Commission's Franchise and Business Opportunity Rule requires franchise and business opportunity sellers to give you specific information to help you make an informed decision. The following resources explain your rights as a buyer, and the information the seller is required to supply.
In addition, it's important you know which rules apply to the company selling you the franchise. The more you know about their requirements, the better informed you are when evaluating their opportunities.
These helpful guides from the Federal Trade Commission provide helpful advice on how to avoid common scams.