What Rules Apply to Ads for Franchises or Business Opportunities?
The FTC's Trade Regulation Rule on Franchises and Business Opportunities ("Franchise Rule") governs the sale of franchises and business opportunities. The law requires sellers to make specific disclosures, give prospective buyers a document containing certain key information about the business opportunity, and be able to substantiate any earnings claims. For more information about buying or selling a franchise, ask the FTC for the Franchise Rule and Your Legal Rights: A Guide To The FTC Franchise Rule. In addition, visit the FTC website for information on what entrepreneurs need to know before buying any kind of business opportunity and alerting them to the latest "bizop" scams. Many states also have laws governing these transactions. Check with the Attorney General's office in the state(s) where you plan to advertise.
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For more information, see here: http://business.ftc.gov/documents/bus35-advertising-faqs-guide-small-business
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