Are you dreaming of starting your own business? Has a classified ad promising you a fortune caught your attention? Be careful! It could cost you thousands of dollars.
Examples of business opportunities
Many business opportunities claiming to be “sure-fire” appear in the classified section of newspapers. They also appear in spam emails and online ads. They take different forms, such as:
- a distribution agreement;
- an agreement to become an authorized dealer;
- the purchase of a franchise.
Regardless of their form, business opportunities often boil down to the same thing: you are offered to purchase the privilege of selling a product. In some cases, various services are provided, such as training, start-up assistance or financial support.
There is no such thing as a sure-fire formula
In many cases, businesses that publish classified ads promise unrealistic profits and guarantee success. In support of their arguments, they make reference to market studies and other convincing documents. Success is never guaranteed in business. There is always a degree of risk involved.
You want to go into business to make money? The company has the same goal. Some are even prepared to make false statements to do so.
Beware of any:
- ads that only provide a post office box;
- requests for money even before you know what is involved;
- promises of big profits for a small investment;
- pressure to quickly sign a contract, even before you have a chance to read it all the way through or show it to someone else.
Last update : September 26, 2022
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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.