What are Business Opportunities ("Biz Opp")?
The Franchise and Business Opportunity Rule requires franchise and business opportunity sellers to give consumers a detailed disclosure document at least 10 days before the consumer pays any money or legally commits to a purchase. The document must include:
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the names, addresses, and telephone numbers of other purchasers;
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a fully-audited financial statement of the seller;
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the background and experience of the business's key executives;
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the cost of starting and maintaining the business; and
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the responsibilities of the seller and purchaser once the purchase is made.
In addition, companies that make earnings representations must give consumers the written basis for their claims, including the number and percentage of owners who have done at least as well as claimed.
Stay Ahead of the Curve! Explore our comprehensive CLIClaw Business Opportunity Marketing Compliance Library for in-depth resources and insights.
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