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:
- Choosing the Best Business to Buy
- Different Worlds
- Franchisees And Licensees--What's the Difference?