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Business Opportunity Seller Tagged Articles
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FTC Interim Business Opportunity Rule Applies to Certain Business Opportunity Sellers
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| Certain business opportunity sellers are subject to the FTC Interim Business Opportunity Rule 16 C.F.R. Part 437. The FTC Business Opportunity Rule applies to “business opportunity ventures.” A business opportunity venture has 3 elements:
1.The buyer sells goods or services which are supplied by the business opportunity seller or a person affiliated with the business opportunity seller;
2.The business opportunity seller assists the buyer in any way with respect to securing accounts for the buyer, or securing locations or sites for vending machines or rack displays, or providing the services of a person able to do either; and
3.The buyer is required to make a payment of $500 or more to the seller or person affiliated with the business opportunity seller at any time before or within 6 months after the business opens.
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Other Business Opportunity Seller Related Articles
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What is a Business Broker?
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| A business broker is an intermediary between a buyer and a seller of a business. In most cases a business broker represents the seller in the sale of a business. It is the business brokers' responsibility to find qualified buyers for their clients. |
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Benefits of Seller Finance when selling your business
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| There are various reasons why it is important to consider seller finance when buying or selling your business. There are upsides and downsides to seller finance and both are worthwhile knowing. This article outlines both, and shows that seller finance can make a big difference in the end. |
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5 alternatives to Seller Finance when selling your business
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| There are many things for both the buyer and seller to consider when selling or buying a business. The five options in this article deal with seller finance and will help ensure success when dealing with your business. Some topics include: sellers credit, earnings, inventory and real estate. |
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FTC Interim Business Opportunity Rule Applies to Certain Business Opportunity Sellers
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| Certain business opportunity sellers are subject to the FTC Interim Business Opportunity Rule 16 C.F.R. Part 437. The FTC Business Opportunity Rule applies to “business opportunity ventures.” A business opportunity venture has 3 elements:
1.The buyer sells goods or services which are supplied by the business opportunity seller or a person affiliated with the business opportunity seller;
2.The business opportunity seller assists the buyer in any way with respect to securing accounts for the buyer, or securing locations or sites for vending machines or rack displays, or providing the services of a person able to do either; and
3.The buyer is required to make a payment of $500 or more to the seller or person affiliated with the business opportunity seller at any time before or within 6 months after the business opens.
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Keeping Your Distributorship/Dealership Offering From Being a Franchise or Business Opportunity - The Don'ts
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| A manufacturer of a product or a seller of distributorships/dealerships must make sure, from the inception of its program through sale and performance, that its program does not inadvertently become the sale of an unregistered and undisclosed franchise or business opportunity. Merely saying that you are not a franchise or business opportunity and calling your offering something else is of no help. To do this properly and effectively, you must know the elements of a franchise and of a business opportunity and avoid having these elements in your distributorship/dealership or other product sales program. Here is a brief description of the 3 "don'ts" to avoid the franchise laws and the 5 "don'ts" to avoid the business opportunity laws. |
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What is a 'Covenant Not To Compete' when buying or selling a business
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| A Covenant Not To Compete is useful when a seller has found a buyer for their current business. This ensures that the new buyer does not open the same type of business as the seller for risk that existing customers will want to do business with the seller and not the new buyer. There are many factors involved to evaluate a Covenant Not To Compete and they are outlined in this article. |
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Dealing with Debt when selling a business
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| A lot of business owners avoid seller financing because they are faced with their own debt issues. Most small businesses are financed in part by sellers themselves. Seller financing actually puts a specific seller in a better position for him to get good financial value and faster sale. Buyers will always look for seller financing options and most advisors would highly recommend it too. |
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Potential problems that Business Sellers Encounter when Seller Financing
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| Financing a business purchase is often a hard task for potential business buyers. If you are thinking about selling your business in today’s market, seller financing will definitely make your business more appealing to potential investors and buyers. But just like any deal, there are issues that sellers will likely encounter in seller financing. These are just some of the issues that you will encounter in seller financing. It would be wise to find a business broker to help you land in a more profitable deal. |
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When selling a business - What is a Seller Earn Out?
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| An earn out is a kind of payment agreement that is often used in seller financing. With an earn out agreement, the seller usually receives part of the total purchase price upfront, and the additional funds in a certain duration of time. The terms of an earn out are usually included in the sales contract. The earn out may also be structured in many ways. Earn outs are usually complicated and legal consult is required to ensure that both parties are well served equally by the said agreement. The seller earn out may be used as the seller financed portion or perhaps an addition a seller note.
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FTC New Business Opportunity Rule - Reduced Disclosure But Increased Coverage
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| Effective March 1, 2012, the FTC’s new Business Opportunity Rule1 becomes effective (the “New Biz Op Rule”). The New Biz Op Rule significantly reduces a business opportunity seller’s disclosure obligation to a prospective purchaser, as the previous format (the FTC Disclosure Statement containing 20 items of required information) has been changed and reduced to a 1-page form requiring 5 items of information that the seller is required to disclose. However, the New Biz Op Rule applies to more companies as, not only business opportunity sellers currently covered by the Interim Biz Op Rule will be subject to the New Biz Op Rule, but also work-at-home programs such a jewelry assembly and envelope stuffing, will meet the expanded definition of a business opportunity. |
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