Smart Disclosure Agreements For Home Work Busienss Opporutnities
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.
The FTB Rule has been in effect since the latter part of 1979. This has had a large impact on all business opportunities. The rule is designed to assure all prospective buyers that they’ll receive a full disclosure containing the type of background information needed to make an informed decision.
There are still those sellers who seek every possible means to escape this regulation. This is controlled at the state level and is considered fraud if caught. If the seller does get away without issuing the FTB 4925, the new buyer should expect major problems ahead.
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.
It must be clear as to what the licensor promises to deliver including exclusive area or territory. At this time, the licensee will be informed of his rights regarding trademarks, trade names, logos and symbols. In addition, the licensor will put in writing the licensee’s use of copyrights and patents for the company.
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.
Ask the salesperson, seller or representative for the phone contact of the local state agency or FTC office that has advised them of the exempt status. The only reasons for an exemption are those where the total initial payment is less than $500. The other possibility is when payment is made for inventory sold at bona fide wholesale price.
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