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Verify Profit Claims

Exaggerated profit claims are common in franchise and business opportunity sales.

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Is a company promising you will make $10,000 a month in your spare time? If it is a franchise, any statement about earnings (regarding others in the system or your potential earnings) must appear in the Uniform Franchise Offering Circular. Read the UFOC and talk to five franchise owners who have attained the earnings claimed.

Excerpted from Start Your Own Business: The Only Start-Up Guide You'll Ever Need