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. In addition, the FTC has resources to help people spot business opportunity and investment scams and avoid franchise taboos.
Plain Language Guidance
Thinking about buying a franchise? Investigate before you invest. Before you sign on the dotted line, read this guide for advice on evaluating franchise opportunities.
Get answers to frequently asked questions about the Amended Franchise Rule, 16 C.F.R. Part 436
Do you have questions about multi-level marketing? The FTC staff has guidance to help members of the MLM industry apply core consumer protection principles to their business practices.
Thinking about starting your own business or expanding the one you own? When you shop for a loan or line of credit, the law protects you against discrimination. The Equal Credit Opportunity Act prohibits creditors from denying you a loan based on reasons that have nothing to do with your credit-worthiness.
If you sell business opportunities, including work-at-home bizopps, find out how the FTC’s revised Business Opportunity Rule may apply to you. Avoid a compliance miscue by making required disclosures and steering clear of prohibited practices.
