|
|
|
Common Online
Frauds & Scams
|
|
|
|
|
Business Opportunities & Franchises
- Beware
of false claims of easy money.
It takes hard work to run your own business, and no one can
guarantee how much profit you’ll make. If the seller
makes any claims about how much you are likely to make, it must
give you written information about the number and percentages of
owners who have actually made those profits.
- Beware of
promises that are not in writing. The contract (or agreement) you
are asked to sign should include all the terms of the deal and the
promises that were made. If
the promises are not in the contract, they probably will not be honored.
Review the contract with an attorney, and ask an accountant to
look over the finances.
Paying for professional advice now could save you from big
losses later.
- Beware of no
Disclosure Document.
The Federal Trade Commission’s (FTC) Franchise Rule
requires franchise and business opportunity sellers to give you
detailed written information, called the “disclosure
document,” at least 10 days before you pay any money or
agree to purchase. If the
company claims to be exempt from the Rule, call the FTC toll-free
at 877-382-4357 to check.
- Beware if the
seller cannot produce a list of previous purchasers. The written information that
sellers must provide includes the names, addresses, and phone
numbers of people who have already purchased the franchise or
business opportunity. Ask
them if their experiences matched what the company promised.
- Beware of
pressure. Demands that
you act immediately are danger signs of fraud.
- Beware of an
emotional decision.
Take your time, do
research and get educated. Check at your local library or
internet for information about how to run a business. For free brochures about
franchises and business opportunities from the FTC, call the
toll-free number above or go to www.ftc.gov.
Information on this website is provided by Chris Triolo, additional
information on internet Frauds and Scams can be found at www.FBI.gov or www.nclnet.org
home
|
|
|
|
|
