Sparkplug CEO and Biz Ops
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Do you know what your legal rights are?
Do you know what information you are entitled to as the buyer of a business opportunity?
Well, Wendy Piersall the author of a reasonably successful blog for women looking for working apparently doesn't know either.
She writes about Red Flags or Warnings:
1. Red Flag # 1 The System Does the Work for You2. Red Flag #2 My Only Product Will Teach You How to Make Money Online!
3. Red Flag #3 Our BBB Profile is Clean!
4. Red Flag #4 Our Franchise Opportunities are Going Fast - Act Now!
5. Red Flag #5 Earn $10,000 a Month With Our Proven Program!
And this is what she writes about Franchising:
"Franchises can be a great way to get up and running if you have limited experience. But they can also rob you of significant amounts of money if you don't do your homework.Legitimate U.S. based franchises are legally required by the FTC to provide you with a detailed disclosure document at least 10 business days before you pay any money or legally commit yourself to a purchase. And I can't stress more highly for you to consult with a business attorney before you sign anything."
Except for Red Flag #3, this advice is very misleading.
What you have to understand is that as a resident of your state, you may have the legal right to demand information before purchasing the opportunity.
The are 26 states which oversee the sale of business opportunities - you have to contact your state representative and find out whether this opportunity is registered in your state.
You actually have no legal rights under the FTC Franchise Rule, unless your state has incorporated by reference violations of the FTC Rule into their state law.
Only the FTC can bring an action for a violation of the FTC Rule - and they ain't giving out money to the scammed investors.
So remember: No State registration, No sale.
Demand the information first. Before any investigation or meeting get the business opportunity registration document. Then you can start asking some serious questions.
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