Franchise and Business Opportunities

Franchise and business opportunities is what most Americans are looking for today. The chance to have your own business has become a dream to many working Americans. However, with lack of enough capital, resources and experience in business, the dream has remained but a dream. 

Although most people imagine that in franchise and business opportunities one is definitely assured of making money, the truth is that one could lose a considerable amount of cash if they are not cautious. 

Before you consider franchise and business opportunities, you should have a look at The Federal Trade Commission's (FTC) Franchise and Business Opportunity Rules to know what you are entitled to and what you should be prepared to offer. 

The Federal Trade Commission requires that the franchisor gives detailed information (disclosure) to the franchisee. The information must be given ten working days before payment and legal commitments made. The following should be included in the information provided:

* Names, telephone numbers and addresses of ten or more franchisees that have the same franchise like the one you are interested in purchasing.

* Final copies of audited financial restatements of the franchisor.

* Experience and background of the key business executives.

* Initial and maintenance costs related to the business.

* Responsibilities of both the franchisee and franchisor will have. 

Before buying the franchise, you ought to:

* Study the information provided by the franchisor carefully.

* Seek legal opinion on the contract from a contract legal expert.

* Talk to the franchisors personally and also the franchisees. Do not restrict yourself to the franchisees given in the disclosure.

* Get to know how much you stand to make by doing your own investigations and not by what the franchisor promises. If the franchisor makes a claim on the amount earned by other franchisees, always demand for a document justifying the claim.

* You should also demand that the number of successes and failed franchises be disclosed. Sellers also must tell you in writing the number and percentage of owners who have done as well as they claim you will.

* Shop around and compare the different franchises. Different companies offer different benefits that may enable you choose what is best for you.