Franchise Buying Guide

Franchise Basics

Franchise or Business Opportunity?
Presented by Guidant Financial
Guidant Financial specializes in helping entrepreneurs purchase new franchises using their retirement funds.

Business opportunities are less structured than franchises, so the definition of what constitutes a business opportunity isn't easy to pin down. In essence, a business opportunity is any package of goods or services that enables the purchaser to begin a business and in which the seller represents that it will provide a marketing or sales plan, that a market exists for the product or service, and that the venture will be profitable.

Here are other key factors:

  • A business opportunity doesn't generally feature the seller's trademark; buyers operate under his or her own name.
  • Business opportunities tend to be less expensive than franchises and generally don't charge ongoing royalty fees.
  • Business opportunities allow buyers to proceed with no restrictions as to geographic market and operations.
  • Most business opportunity ventures have no continuing supportive relationship between the seller and the buyer; after the initial package is sold, buyers are on their own.

Find more information on the differences between franchises, business opportunities, MLM programs and licensing agreements in the following articles:

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