The Federal Trade Commission (FTC), the nation’s consumer protection agency, has prepared the following online consumer guide to explain how to shop for a franchise opportunity, the obligations of a franchise owner, and questions to ask before you invest. (22)

Federal Trade Commission: A Consumer’s Guide to Buying a Franchise

For companies selling franchises and business opportunities – and entrepreneurs in the market – the FTC's Franchise Rule and Business Opportunity Rule mandate disclosures and offer buyers certain protections. Under the FTC’s Rule, franchise opportunity sellers are required to give purchasers a detailed disclosure document at least fourteen (14) days before the purchaser pays any money or legally commits to a purchase. (14)

Contact: Federal Trade Commission: Franchise Rule Compliance Guide, 202.326.2222 or Arizona toll free: 877.382.4357

Additional Information:

See also: Business Opportunity

Federal Trade Commission: Franchises, Business Opportunities, and Investments; Thinking About Buying a Franchise?  

U.S. Small Business Administration (SBA): Buy an existing business or franchise; SBA Office of Entrepreneurship Education | Resources: Before Investing in a Franchise

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