If you're not sure whether you purchased a Franchise or a Business Opportunity, click Franchise or Business Opportunity? for more information.

Basically if you are allowed to use the Seller's Trademark or Logo, the Franchise laws will apply, otherwise the Business Opportunity laws apply.

The FTC franchise and business opportunity laws only apply if you paid $500 or more for your business, but many states have a much lower limit.

Summary of the Most Common Violations

1. Earnings Claims were made and not supported in the way the law requires. This is the most common violation. Many, if not most, Sellers violate this law. Click Most Sellers Dance Around Earning Claims to learn how to get your refund in this situation.

2. Franchise or Business Opportunity Disclosure Document not given to you 10 business days before you signed anything or paid any money.

3. All items purchased were not delivered.

4. State laws violated such as: Right to cancel form not given to you or your investment was not put into an escrow account as required by some states.

Read the laws for your state and see what other violations your Seller may have committed.

State law violations are the most helpful to you because most state laws say that if the seller violated one of the state laws, you are entitled to cancel the contract and get your money back.

Most state laws require that you take action within the first year, but there are ways around that. Most sellers don't know about the 1-year time limit, so you may be able to bluff your way into a refund. Click Step-by-Step Instructions to find out how.

If the Seller violates an FTC law, the FTC can go after the Seller and they may do this after they get a lot of complaints, but the FTC laws don't give you protection and allow you to get your money back like the state laws do.

Most Sellers don't know this and they don't want any trouble with the FTC, so again you may me able to bluff your way to a refund. Click Step-by-Step Instructions to find out how.

But the first thing you need to do is to find out if there are any laws in you state to protect you and to find out which laws your seller violated. Click here to see the laws for every state.

Some states have "Seller-Assisted Marketing Plan" laws instead of or in addition to Business Opportunity and/or Franchise laws. "Seller Assisted Marketing Plan" laws give you a lot of ways to get your refund. These laws are included in the laws of each state.

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