{"id":5222,"date":"2012-02-13T19:36:48","date_gmt":"2012-02-13T19:36:48","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=5222"},"modified":"2015-04-06T00:57:12","modified_gmt":"2015-04-06T00:57:12","slug":"franchises-biz-opps-federal-trade-commission","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/franchises-biz-opps-federal-trade-commission","title":{"rendered":"Franchises, Bizz Opps, And The Federal Trade Commission"},"content":{"rendered":"

\"FTC<\/p>\n

(The FTC Building<\/em>.)<\/p>\n

 <\/p>\n

If you’re thinking of becoming your own boss<\/strong>, there are thousands of opportunities to choose from. Actually, let me repeat that sentence with a little different emphasis;<\/p>\n

 <\/p>\n

There are thousands of “Opportunities<\/em>. ”<\/p>\n

 <\/p>\n

In other words, there are business<\/em> opportunities and franchise<\/em> opportunities<\/strong>, but they’re totally different types of businesses<\/a><\/strong>.<\/p>\n

 <\/p>\n

In addition to the franchise advisory service<\/a><\/strong> that I provide–which consists of me<\/em> making sure that you<\/em> don’t get screwed, there’s an entire US government agency<\/strong> that’s trying to watch your back.<\/p>\n

 <\/p>\n

It’s <\/strong>the FTC, <\/strong>and their mission is, “To prevent business practices that are anticompetitive or deceptive or unfair to consumers; to enhance informed consumer choice and public understanding of the competitive process; and to accomplish this without unduly burdening legitimate business activity<\/em>.”<\/p>\n

 <\/p>\n

If you’re a consumer, this agency serves as a watchdog; and it’s a dog with no sense of humor<\/strong><\/em>.<\/p>\n

 <\/p>\n

\"Watchdog\"<\/a><\/p>\n

 <\/p>\n

Biz Opps<\/h2>\n

 <\/p>\n

You’ve probably seen advertisements\u00a0similar\u00a0to these;<\/p>\n

 <\/p>\n

“Stuff Envelopes For<\/em> Pay\u00a0From The Comfort of Your Own Home<\/em>.”<\/p>\n

 <\/p>\n

“Own a Profitable Vending Machine Business<\/em>.”<\/p>\n

 <\/p>\n

“Become a Loan Broker<\/em>!”<\/p>\n

 <\/p>\n

Advertisements like the ones above can usually be found in the classified section of your local newspaper on any given Sunday. If you decide to investigate these, “Opportunities<\/em>” \u00a0a bit more, you’ll quickly discover that they’re Biz Opps<\/strong>. (Short for business opportunities<\/em>.) They are not<\/em> franchise opportunities<\/strong><\/span>. \u00a0They aren’t regulated as tightly as franchise opportunities, and there’s an easy way to decipher the difference; investment amounts for these businesses are typically on the low-end.<\/p>\n

Like $2,000<\/strong>. Or, $8,500<\/strong>. Or, $500<\/strong><\/em>.<\/p>\n

 <\/p>\n

Franchise business opportunities can’t<\/em> be had for amounts that low. Trust me.<\/p>\n

 <\/p>\n

Go to this franchise website<\/a><\/strong>, and you’ll see what I mean.<\/p>\n

 <\/p>\n

Now, go to this website<\/a><\/strong> to see a business opportunity.<\/p>\n

 <\/p>\n

 <\/p>\n

More Disclosure Needed<\/h2>\n

 <\/p>\n

For the first time buyer, (of a business<\/em>) it used to be a bit more challenging to figure out what was a Biz Opp<\/strong>, and what was a franchise. That’s changing, and we have the FTC to thank for it.
\nThat’s because as of now, anyone selling a Biz Opp<\/strong> must provide information on a simple, and easy to read, one-page disclosure document. And, they must provide it at least 7 days before the buyer pays money or signs a document. In addition, the Biz Opp<\/strong> seller must state the following:<\/p>\n

 <\/p>\n