How long has the opportunity been around

• Any new opportunities or franchises that don't have a history of success become risky since there is no way of knowing how well the average person will do in them. Ground floor opportunities involve a certain degree of risk that should be evaluated before purchasing. Opportunities involving sales and recruitment should be investigated closely.

Analyze the disclosure document and proposed contract carefully

• A franchise or business opportunity seller should provide you with a disclosure document 10 days before you invest any money or commit legally to purchase. This document is required by the FTC Franchise rule. The franchisor is required to provide 20 items of information including the number of purchaser's, name, phone numbers, addresses, telephone numbers and the background and experience of the businesses key executives. Do not sign or commit yourself to any opportunity on a Web site until you have had the chance to analyze all the documentation.

Talk to current owners or entrepreneurs in similar lines of work

• When you read the disclosure documentation make some phone calls to some of the contacts to discover their experiences. Compare the information in the disclosure document to promotional materials given to you. A list of company selected references cannot be substituted for the required list of franchises or business opportunity owners.

Are Claims and Testimonials Verifiable?

• Call and verify information provided in the testimonials. Can you actually contact the people that are quoted in the testimonial claims? Income and earnings cannot be easily verified and everyone is different. Income claims or promised earnings are only estimates. The franchise or opportunity seller must tell you the number of owners that have actually met the claimed profit margins.

Does the Franchise or Business Opportunity match your personality and interest level?

• A franchise or business opportunity that requires a significant amount of face to face qualifying and selling may not be best suited for you if you spend most of your work time behind a computer. You will need to determine if you are more comfortable sitting behind a desk rather than working a sales territory prospecting for new business.

Compare and shop around for new business opportunities and franchises.

• Be sure to check our online listing of franchises and new General Business Opportunities covering southeastern Michigan. You can also use the Franchise Opportunity Handbook published by the Department of Commerce to check other sellers and compare offerings.