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Franchise and Business

Learn About Franchise and Business Opportunities - 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. 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.

Franchise Agreements

Before You Sign the Franchise Agreement - The company’s disclosures may change between the time you receive the disclosure document and the time you sign the franchise agreement. For example, the company may have updated its disclosures; it is required to do that at least annually after its fiscal year ends.

Earnings Information

Franchse Earnings Information - You may want to know how much money you can make if you invest in a particular franchise system. Be careful. Earnings information can be misleading. Insist on written substantiation for any information you may receive that suggests your potential income or sales.

Franchise References

Some franchisors may give you a separate reference list of franchisees to contact. To ensure that you get the full picture, you may want to contact at least some references listed in the disclosure document that are not on the separate list.

Former Franchisees

Current and Former Franchisees - This section has very important information about current and former franchisees. Many franchisees in your area may mean more competition for customers. The number of terminated, cancelled, or non-renewed franchises may indicate problems.

Franchise Advertising

About Franchise Advertising - This section has information on advertising costs. Franchisees often are required to contribute a percentage of their income to an advertising fund.

Franchise Training

Need to learn About Franchise Training - This section explains the franchisor’s training and assistance program. heck for information about: