Home Advertise Contact Blog Advertiser Login High-Yield Investments
Newsletter Signup

Business Opportunities
Change Your Life Get Into Business For Yourself Online Business Opportunities
Home-Based Business Opportunities
Licensee Opportunities
Low Cost Opportunities
Distributorship Opportunities
Home-Based Businesses
Choosing a Business Opportunity Growth and Profit Marketing and Sales
Plans and Goals Running Your Own Business Start-Up
Working From Home Entrepreneur Exchange Feature Articles
Opportunity Community Opportunity Focus In The News

Expanding Opportunity Services - It has always been our mission to provide the best customer service possible and have recently added no cost training and coaching sessions for all active advertisers. Now, we are going a step further to address the one major problem faced by opportunity owners–lack...

Drone Technology - Don’t think drones and franchises and businesses opportunities have anything in common? Think again. Drone technology is transforming the way many industries tackle a wide range of everyday services.

Drone Technology - Here is a look at how drones are impacting the way businesses...

Better Salespeople - “One thing I do know is you have to be able to sell if you own almost any type of opportunity and if you can't you should hire someone who can. Problem is what type of person makes the best salesperson that you can count on and why?", says business opportunity...

Business Opportunity for Sale

Sponsors

Get a piece of the BILLION DOLLAR APP INDUSTRY! LOCK IN A TOP POSITION. Click of Call Bill Toth Phone: (716) 345-1888
Need To Fill Positions Fastest Growing, All Inbound Call, Direct To Consumer Distribution Team In The USA! 217-718-4744
This Featured Article is live on our blog and I know could be very insightful for connectivity and ROI.
If you're a successful entrepreneur who provides others like you the chance to follow in your footsteps... Read On
When one of your busiest marketing channels limits you to 140 characters, you know that the internet sets its own rules.
Residual Income is the way that you work once and get paid multiple times—sounds great!... Read On
It’s not uncommon for an individual to have a desire to open and operate their own small business opportunity.. read on
Working-At-Home is easier said than done I know. Is this you though? Do you want the freedom of running... Read On
Be A Distributor
Work-at-Home
Small Business
Resource Center > Article
What You Should Know About Disclosure Statements
Share this Article:

Buying a business opportunity, franchise, licensee opportunity or distributorship is a big decision, one you shouldn’t take lightly.  Thankfully there are some serious regulations in place at the federal level as well as within many states that are designed to protect you from making a bad decision or being taken in by a fraudulent enterprise, starting with the critically important disclosure statement.

The disclosure statement is a document that any seller of a business opportunity, franchise or similar concern is required to provide to you as a potential buyer by law.  It details everything you need to and should know about the business in question and must be given to you if not during the first “personal meeting,” then within a specified timeframe.  Although the disclosure requirements as delineated by the U.S. Federal Trade Commission (FTC) are considerable, they are not overruled by those set forth by the 26+ states that also have them.  So be certain to check the regulations in your state in addition to those of the FTC before you sign on the dotted line or give the seller any money.

Remember, oral statements, exchanges or promises that are made to you by the seller or between the two of you are not legally binding!  This is precisely why knowing what comprises a comprehensive disclosure statement is so important. 

So here it is, a brief overview of what a truly solid disclosure statement should contain as stipulated by the FTC:


  • Name under which the seller is doing business, including such particulars as trademarks, trade names and service marks, et al.

  • Five-year or more retrospective of principal players’ business experience, as well as any parent firms

  • Seven-year retrospective re: any legal entanglements involving either the principals or the company, including such things as fraud, felonies, civil actions, et al.

  • Past seven-year fiscal profile to include bankruptcy, insolvency, etc.

  • Factual description of the enterprise being sold

  • Clear statement of total funds to be paid by the buyer and under what conditions, as well as any refund policy

  • Clear statement of any recurring funds to be paid, for what purpose, at what intervals and under what conditions

  • Required affiliations between the buyer and any other concerns as set forth by the seller

  • Required purchases, leases or rentals as set forth by the seller

  • Clear accounting of the financial implications for the seller as a result of buyer arrangements with identified suppliers or other concerns

  • Material terms and conditions of any financing arrangements between the seller and the buyer

  • Clear statement of facts re: goods and services for sale, potential customers and/or geographic parameters for the sale of allowed goods and services, as well as any agreement with regard to protected markets/territories

  • Clarity on expectations re: direct operation of the purchased enterprise and by whom

  • Details re: duration of the arrangement between the seller and buyer, renewal, extension, termination, modification, sale, refusal to renew or extend, etc.

  • Total profile of affiliated concerns to date, with emphasis on those nearest to the potential buyer’s intended locale, including contact information for referrals

  • Role of the seller, if any, in site selection for the enterprise

  • In-depth review of initial and ongoing training program(s) and what can be expected

  • Public figure affiliation (on the part of the seller) disclosure, if applicable

  • Most recent fiscal year financial statement (balance sheet), as well as other income-related documents as specified.


In addition, the FTC stipulates that a number of CAUTION notices be included in the disclosure statement, just to ensure there is no confusion as to what is being promised.  Where you see one, pay attention.  Finally, any seller of a business opportunity, franchise, licensee opportunity or distributorship that promises you a specific level of income is doing so at their own peril, unless the context in which they are providing the information meets with some pretty specific requirements.  For a more in-depth look at what those are, as well as the overall disclosure statement content as prescribed by the FTC that is outlined here, please click on the Commission’s Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures webpage now.

Live On Your Own Terms
Related Blog Posts

Entrepreneurs Wanted - Once you’ve decided to take the plunge and enter the scary, exciting, challenging and oh-so satisfying world of entrepreneurship, you need to find the best business opportunity. How do you find one that has potential, sparks your interest and doesn’t break the bank? How do...

Live On Your Own Terms

Start a Business Opportunity with $100 or Less - Don’t let a lack of funds keep you from starting your own business.

Start a Business Opportunity with $100 or Less Really IS possible. The variety of opportunities available is surprising, and not all are internet related. It’s a fact, you don’t...
Live On Your Own Terms

How Do I Buy A Business And Not Get Ripped Off? - When you buy a business opportunity, you can hit the ground running. That’s because someone else has already developed the idea, the system, the service, the product, whatever form the readymade biz opp takes.

Here is a look...
Live On Your Own Terms
The Opportunity Analysis Canvas By James V. Green (Author) “From the creator of “Developing Innovative Ideas for New Companies”, the #1 course in entrepreneurship with over 600,000 learners from 175 countries. IN THE OPPORTUNITY ANALYSIS CANVAS, DR. JAMES V. GREEN...
Live On Your Own Terms
October is National Women in Business Month, so what better time to talk about the incredible strides that women are making in becoming business opportunity and other small business owners.  It’s also a great time to talk a little bit about why business opportunities are a specifically good fit for women...
Live On Your Own Terms
Featured Listings
Entrepreneur
Be Your Own Boss

The Billion Dollar Salesman -Serving the World for 28 Years! I’ve truly lived a blessed life and I have also been fortunate to have many mentors that provided me with guidance and motivation. As a result of learning how to do things the right way the companies that I’ve owned have generated just...

Read More

Opportunity Video Spotlight

United Games! The first and only business that will pay you 24/7 365 days a year when people are watching NFL, NBA baseball, soccer, cricket, rugby, hockey in fact any major sport anywhere in the world.

Premium Sponsor


Are you looking for a cool way to make money? For over 38 years, Sno Shack has been dedicated to creating quality shaved ice—in both equipment and flavors. With our low startup costs and high profit margins, Sno Shack works for everyone! You can customize your business to make it as large or as small as you want it to be. Click Below to learn more about starting your Sno Shack today! You can also call Sno Shack (1-888-766-7425) let us know you are interested and we’ll get the ball rolling!

Sno Shack is the cool way to make money! Use your Sno Shack as a fun summer job, a way to teach your children the importance of hard work and responsibility or as a way to earn extra income. Whether this is your first time owning your own business or you are a seasoned entrepreneur, we know you will fall in love with this business opportunity just as much as we have!