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
See also: Business Opportunity
Federal Trade Commission: Franchises, Business Opportunities, and Investments; Thinking About Buying a Franchise?
Top Franchises: Entrepreneur.com