New Hampshire Department of Justice
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Consumer Sourcebook

Preface | User's Guide | Table of Contents | Print Sourcebook Adobe Acrobat Reader Symbol

Extra Note: Business and Franchise Opportunities

Not every business or franchising opportunity is a multi-level marketing scheme. Many are legitimate opportunities for people with the entrepreneurial spirit to own their own businesses. The Federal Trade Commission requires those who are selling franchises and other business opportunities to provide certain information to the potential buyers.

At least ten business days before a potential buyer signs any contracts or pays any money, the franchise seller must provide a detailed disclosure document outlining 20 important items of information about the business. This disclosure document gives the potential buyer information about the business and can be helpful in comparing business opportunities. The information must include:

  • The names, addresses, and telephone number of other purchasers
  • A fully-audited financial statement of the seller
  • The background and experience of the business's key executives
  • The cost required to start and maintain the business
  • The responsibilities the buyer and the seller will have to each other once the buyer buys

The Federal Trade Commission recommends that the following steps should be taken by anyone considering buying a franchised business:

Distributorship opportunities for products sold in vending machines, racks or display cases are specifically regulated under New Hampshire law, RSA 358-E.

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New Hampshire Department of Justice | 33 Capitol Street | Concord, NH | 03301
Telephone: 603-271-3658