Franchise and Business Opportunties

How it is Supposed to Work:

You send money for information about starting a business franchise from your home. What the sites lack in details they make up for in promises and claims. Many business opportunity deals offer the entrepreneur a pre-packaged small business. Typical business opportunities involve vending machines, amusement games, pay telephones, and display racks for such items as greeting cards and CD ROM computer software.

The Reality:

What they are selling you is the training and support systems. Victims have been lured into spending thousands of dollars with nothing to show for it but a huge debt. Anyone who really had business ideas this good would never offer this information to thousands of others. They would simply use it themselves.

Things to especially look out for in these advertisings are:

• Urges you to call an "800" number.
• Makes wild and unsubstantiated claims about potential earnings.
• States no experience is necessary.
• Promise exclusive territories, good locations for vending machines or display racks, or the assistance of a professional locator.
• Rely on high-pressure telemarketing sales techniques.
• Fails to provide a list of all current business opportunity owners in the region but instead gives a handpicked selection of references.
• Failure to provide prospective investors with a complete disclosure document containing pre-sale disclosures about their experience, lawsuit history, audited financial statements, and substantiation for any representations made about earnings.

More Information:

Still not sure they are scams? Check out these links for more information. Note, these are not links to "legitimate" companies. These are links to articles by the BBB, FTC and other organizations exposing the frauds.