What would be your feelings if you had been searching for a number of years and thought you had found the perfect company to invest with? It matched your entire list of demands for a great opportunity of working from home. The product and the marketing line were superior to your dreams.
You had been saving and had a large capital set aside. Due to your high credit score, not have any bills, your personal banker had already highly encouraged you about this coming day and the loan the two of your discussed. That evening your banker calls to discuss the disclosure statement; what disclosure statement you ask?
The aggressive actions at the state level especially have saved many would-be licensees from loosing money and have had a broad-ranging impact on the business industry. There are now incredible entrepreneurial success stories in the making due to the Federal Trade Commission Rule (FTC) that was passed. This act now defines business opportunity ventures.
This is why if you are the buyer you should pay especially close attention to the FTC disclosure statement and demand one, or move one. Every prospective buyer of a business opportunity must receive the FTC disclosure statement at least 10 business days before signing a binding contract.
Another consideration to the seller, the buyer must receive the FTC disclosure statement 10 days prior to paying any money. The 10 business day requirement (either way) is minimal. If you haven't received an FTC disclosure document, don't sign anything or pay out any money, even if claims are made that are "refundable."
These are rules that both parties have discussed prior and have come to an agreement with. The disclosure agreement is a formal statement so there are no unknown items and all sections are now being legally documented. This states how you the buyer will actual participate in the operation of the business.
If you find yourself in such a situation described as above, the seller or representative are violating the state law and perhaps the federal law. Demand to see an opinion letter from counsel before dealing with them any further. If they tell you they are exempt, be even more suspicious of the entire situation.
Financial statements of the company are required in every state and are an audited financial statement prepared by a CPA or loan representative. There is usually a letter from the accountant indicating that the books have been thoroughly audited and are available for study. Any estimates or projections of earning would have to be part of the disclosure statement.
You had been saving and had a large capital set aside. Due to your high credit score, not have any bills, your personal banker had already highly encouraged you about this coming day and the loan the two of your discussed. That evening your banker calls to discuss the disclosure statement; what disclosure statement you ask?
The aggressive actions at the state level especially have saved many would-be licensees from loosing money and have had a broad-ranging impact on the business industry. There are now incredible entrepreneurial success stories in the making due to the Federal Trade Commission Rule (FTC) that was passed. This act now defines business opportunity ventures.
This is why if you are the buyer you should pay especially close attention to the FTC disclosure statement and demand one, or move one. Every prospective buyer of a business opportunity must receive the FTC disclosure statement at least 10 business days before signing a binding contract.
Another consideration to the seller, the buyer must receive the FTC disclosure statement 10 days prior to paying any money. The 10 business day requirement (either way) is minimal. If you haven't received an FTC disclosure document, don't sign anything or pay out any money, even if claims are made that are "refundable."
These are rules that both parties have discussed prior and have come to an agreement with. The disclosure agreement is a formal statement so there are no unknown items and all sections are now being legally documented. This states how you the buyer will actual participate in the operation of the business.
If you find yourself in such a situation described as above, the seller or representative are violating the state law and perhaps the federal law. Demand to see an opinion letter from counsel before dealing with them any further. If they tell you they are exempt, be even more suspicious of the entire situation.
Financial statements of the company are required in every state and are an audited financial statement prepared by a CPA or loan representative. There is usually a letter from the accountant indicating that the books have been thoroughly audited and are available for study. Any estimates or projections of earning would have to be part of the disclosure statement.
About the Author:
Myles Krueger is a solid source at helping students, readers, and owners find home work business opportunities that make profit. He also is talented at locating a work at home business opportunity that fits your skills.
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