Links to Pertinent info at the FTC Website
The US FTC has a wealth of great info for potential Franchise owners. To save you the trouble, we've combed through the site and offer links here.
"Frank talk before buying a franchise"
Just like when shopping for an appliance or used car, the FTC has tips for consumers thinking of investing in a franchise.
The FTC's "Frank talk before buying a franchise":
Read the FTC's "Frank talk" document
A Consumer’s Guide to Buying a Franchise
Thinking about buying a franchise? Investigate before you invest. Before you sign on the dotted line, read the FTC's guide for advice on evaluating franchise opportunities.
Take advantage of the FTC's Guidance:
Read the Consumer’s Guide to Buying a Franchise
Ads for Business Opportunities: How To Detect Deception
Unfortunately, not all "Be your Own Boss" opportunities are on the up and up. Although it is written to help publishers recognize scams, it certainly could help you as well!
Recognize Deceptive Advertising:
Don't waste your time if you see these red flags
Recognize Deceptive Advertising (pdf):
Pdf of above link
The Franchise Rule gives prospective purchasers of franchises the material information they need in order to weigh the risks and benefits of such an investment. The Rule requires franchisors to provide all potential franchisees with a disclosure document containing 23 specific items of information about the offered franchise, its officers, and other franchisees.
The actual Rule is 16 CFR Parts 436 and 437, and we have supplied a link to the actual text.
Franchise Rule Actual Text
Read the typical "Government Speak" Text:
Franchise Rule Notice pdf:
An overview pdf that includes about why the rule was put in place
Franchise Rule FAQ:
Frequently Asked Questions about the Franchise Rule