Avoiding Business Opportunity FraudTopics Covered:
What Is A Business Opportunity?
Certain types of business opportunities must be registered with the state before they can be offered to the public. They involve the sale or lease of any product, equipment, supply, or service which will enable the purchaser to start a business,
AND:The seller says that they will provide locations or assist the buyer in finding locations, for the use or operation of vending machines, display racks, cases, or similar devices or coin-operated amusement machines or similar devices;
The seller says that they will purchase any product made, produced, fabricated, assembled, modified, grown, or bred by the purchaser using, in whole or part, any product, equipment, supply, or service sold or leased to the buyer by the seller;
The seller guarantees that the purchaser will earn an income greater than or equal to the price paid for the business opportunity;
The seller says that if the buyer pays a fee exceeding three hundred dollars directly or indirectly for the purpose of the seller providing a sales or marketing program, the seller will provide such a program which will enable the purchaser to derive income from the business opportunity which exceeds the price paid for the business opportunity.
They may also:
- offer to refer the buyer to a professional locating service.
- represent that they will repair or replace broken machines.
- offer training.
You as the buyer can name your business, set your own hours, set up just how you will run your business, develop your own marketing plan, etc. You are also responsible for the cleaning and/or restocking, making sure the machines or display racks are in good repair, and hopefully, collecting the money.