So, what exactly is a ‘business opportunity’? That’s a question that has haunted many lawmakers as well as countless would-be entrepreneur’s that have lost their fair share as a result of so-called ‘business opportunities’.
As reported by entrepreneur.com, according to the FTC, these 4 elements must be present for a venture to qualify as a ‘business opportunity’:
- The individual who buys a business opportunity, often referred to as a licensee or franchisee, must distribute or sell goods or services supplied by the licenser or franchisor.
- The licensor or franchisor must help secure a retail outlet or accounts for the goods and services the licensee is distributing or selling.
- There must be a cash transaction between the two parties of at least $500 prior to or within six months after the licensee or franchisee starts the business venture.
- All terms and conditions of the relationship between the licensor and the licensee must be stated in writing.
So, before you jump head-first into ANY new business, be sure to investigate it thoroughly. You’ll save yourself a great deal of stress and most likely money!
