This is a protection for any potential buyer to be informed of any unpaid tax liabilities, penalties or bankruptcies known to the seller. Any qualified entities, shareholders, or beneficiaries entering into a voluntary disclosure agreement must fully disclose all facts. The participants must complete an application form FTB 4925.
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.
The licensor has the obligation to state any financial arrangements. The disclosure must state what the parent company will provide in terms of equipment, training, services and manuals. If the licensee has to purchase any materials from a supplier that must be stated.
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."
If you choose to meet face-to-face with the seller or a representative to discuss a proposed sale or purchase of the business opportunity, know your rights. If the conversation results in a serious sales presentation, the seller must provide you with the disclosure at that time. If not, once again make no agreement.
Restrictions on goods and services offered by the licensee are covered. The disclosure statements have provisions for renewal and terminations, repurchase and modification. It also lists current licensees and addresses of both parties and information is legally documented.
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.
The licensor has the obligation to state any financial arrangements. The disclosure must state what the parent company will provide in terms of equipment, training, services and manuals. If the licensee has to purchase any materials from a supplier that must be stated.
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."
If you choose to meet face-to-face with the seller or a representative to discuss a proposed sale or purchase of the business opportunity, know your rights. If the conversation results in a serious sales presentation, the seller must provide you with the disclosure at that time. If not, once again make no agreement.
Restrictions on goods and services offered by the licensee are covered. The disclosure statements have provisions for renewal and terminations, repurchase and modification. It also lists current licensees and addresses of both parties and information is legally documented.
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 great resource at helping pupils, readers, and entrepreneurs find home work business opportunities that make profit. He also is talented at spotting a work at home business opportunity that fits your mindset.
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