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The main kinds of business opportunity
Franchises
You pay for the right to run a business under an established brand and system. Costs usually include an initial fee, setup and ongoing royalties or marketing contributions. You get a proven model and support, but you follow the franchisor's rules. Read buy a franchise for the steps and what to check.
Business opportunity packages
A seller offers a package to start a business, such as equipment, vending locations, accounts or a promise to buy back what you produce, usually in return for a payment. These are often marketed heavily as business opportunities from home. Some are sound; others oversell. In some places, specific rules apply to these sellers.
Buying an existing business
You buy a running business with its customers, staff, assets and obligations. Business opportunities for sale listings often fall in this group. Your protection comes from due diligence: checking the books, contracts, leases and liabilities with an accountant and a lawyer.
Starting your own business
You build from scratch. Costs can be low for service businesses and higher for anything needing premises, stock or staff. You keep full control and full risk.
Partnering with a company
You sell or refer another company's product and are paid commission or fees on results. You usually don't buy anything up front, and you usually don't own the customer. The risk is your unpaid time.
Investing
Investment opportunities mean putting money into a business you may not run, through shares, loans or a stake in a private company. Many investments are regulated, private stakes can be hard to sell, and you can lose what you put in. Take independent advice and be wary of promised returns.
Side by side
| Franchise | Business opportunity package | Existing business | Start your own | Partner | Investor | |
|---|---|---|---|---|---|---|
| Upfront cost | Fee plus setup | A required payment | Purchase price | Varies | Often none | Your investment |
| Control | Within the franchisor's system | Varies | Full | Full | Within the agreement | Limited |
| Ongoing payments out | Royalties and fees common | Varies | None to the seller | None | None; you are paid | None |
| Main risk | Costs against results | Overselling | Hidden problems | Slow start | Unpaid time | Losing money |
Disclosure rules that protect buyers
Rules differ a lot from country to country. A few examples:
- United States. The FTC Franchise Rule requires franchisors to give buyers a Franchise Disclosure Document at least 14 calendar days before they sign or pay. The FTC Business Opportunity Rule requires certain business opportunity sellers to give a one-page disclosure document at least 7 days before signing or paying, and limits earnings claims. Some states add their own rules.
- Canada. Several provinces have franchise disclosure laws. Ontario's Arthur Wishart Act and Alberta's Franchises Act both require disclosure before signing or paying, and other provinces have similar acts.
- United Kingdom. There is no franchise-specific disclosure law. Buyers rely on general contract and consumer law, industry codes and their own due diligence, which makes independent advice especially important.
- European Union. Rules are set country by country. Several countries require pre-contract disclosure for franchises, including France and Italy.
Wherever you are, ask for every cost in writing, check whether any earnings claim is backed by documented results, and have a lawyer review the agreement.
Questions to ask about any business opportunity
- What will I pay, now and later, and what exactly do I get?
- Who owns the customers if I leave?
- Are any earnings figures based on real, documented results?
- Can I speak with people who have done this before, including some who left?
- Which laws apply where I live, and was I given any required disclosure?
Where the Territory Partner pilot sits
Play 2 Earn Sports is piloting a Territory Partner program in which independent partners bring sports clubs, leagues and academies onto the Play 2 Earn Sports platform. Partners earn a share of the platform fee each time one of those clubs' players registers and pays, every season.
Territory Partners pay a one-time territory fee for an exclusive area: about CAD 5,000 in Ontario. The fee depends on where you are, and we confirm it in writing before you sign. In Ontario this is a franchise under the Arthur Wishart Act. Because the total initial investment is $15,000 or less, no disclosure document is required, but the Act's duty of fair dealing still applies. We don't sell territories where a disclosure document or registration would be required, including British Columbia, Saskatchewan and several US states. There you can join as a Sports Ambassador instead, which has no fee. After the fee it is commission only, not a job. The terms are proposed and can change before you sign, and the signed agreement is what applies.
Questions
What is a business opportunity?
In everyday use, any way to start or own an income-producing business. In some laws, such as the US FTC Business Opportunity Rule, it has a narrower legal meaning tied to payments and promised support.
Are business opportunities from home legitimate?
Some are. Be careful with any offer that asks for a payment up front, promises earnings, or relies on recruiting other people. Check the seller, ask for documents and get advice.
Is a franchise a business opportunity?
A franchise is one kind of business opportunity in the everyday sense, but the law often treats franchises separately with their own disclosure rules.
Do I need money to partner with a company?
Often not. Commission partnerships usually cost little to start, but you invest your time, and you are only paid on results.
Official sources
- FTC Franchise Rule (16 CFR Part 436) (opens in a new tab) United States federal disclosure rule for franchises.
- FTC Business Opportunity Rule (16 CFR Part 437) (opens in a new tab) United States federal rule for business opportunity sellers.
- Arthur Wishart Act (Franchise Disclosure), 2000, Ontario (opens in a new tab) Example of a Canadian provincial franchise disclosure law.
- Franchises in Alberta, Government of Alberta (opens in a new tab) Plain-language guide to Alberta's Franchises Act.