Washington State Department of Financial Institutions

Avoiding Business Opportunity Fraud

Topics Covered:

Be Slow to Invest

Proceed with caution. Don't let yourself be rushed into buying. Despite what the sales representatives will tell you "that this won't last long" or "opportunities are going fast", it will wait another week. If it won't wait, or doesn't wait, you probably don't want to be involved with it.

Just because the company is participating in a franchise or business opportunity show doesn't necessarily mean that they have complied with all state and federal laws. Or that they are legitimate.

Research the market. Make sure that you have a clear grasp of how the business opportunity will work. Research the demand for the product or service in your area. Don't rely on glowing promises that everyone is clamoring for your product or service.