International Brokers Association

Running a successful business involves hard work with long hours and substantial risks. People who are in business for themselves or interested in starting their own business should beware of any business offer which promises quick riches and short work weeks as a result of buying a business opportunity. The Seller Assisted Marketing Plan Act commonly referred to as opportunities; requires SAMPs to register with the California Attorney General; to provide significant disclosure statements to potential buyers before they sign any contracts or pay any money; and to provide the buyer specific contractual rights after a purchase has been made.~~Generally a SAMP is any sale or lease or offer to sell or lease any product equipment supplies or services which requires a payment of more than $500 before or during the first six months of the contract (cash payments of more than $50 000 before or at the time of signing are not covered by the statute) when the seller represents that the buyer may be able to earn more than he/she paid or that there is a market for the product equipment supplies or services bought or for products made produced fabricated grown bred modified or developed by the purchaser using in whole or in part the product supplies equipment or services which were sold or leased. There are some exceptions. If in doubt contact the Attorney General Business opportunity scams commonly promise big earnings in a short time with little or no experience necessary.~~If you are considering a business opportunity review the following tips and information before providing any money up front. Be skeptical about earnings claims that sound too good to be true. Research and verify any claims of certification and find out who recognizes them. Cautiously review ads and discard those that provide little to no information other that glowing testimonials and references. Obtain reliability report from Business Consumer Alliance to review the complaint history background and other pertinent information. Obtain and review the required disclosure documents before you give the seller any money. Consult others who have purchased the business opportunity to see how successful it has been the costs involved including incurring additional fees out of pocket expenses and other information that will help you make a wise buying decision. Do not automatically assume those promises of prime locations and ongoing assistance will be there when you need them. Victims who have been scammed by a business opportunity should file a complaint.