Avoiding Business Opportunity Scams

              Consumer Tips For more information:
Before purchasing a business opportunity,
check out the following:
• Registration: Contact the Illinois
Securities Department to inquire
whether the business opportunity is
registered or exempt from registration
requirements, and whether the business
opportunity or its promoters have been
the subject of any disciplinary actions.
• Disclosure statement: Most sellers of
business opportunities are required by
Illinois law to provide a purchaser with
a disclosure statement at least 10
business days before he/she signs a
contract or pays any money. Take time to
read this information carefully. If a
salesperson cannot provide a disclosure
statement or pressures you to buy
immediately, be skeptical.
• Guarantees of profits: All companies
that guarantee earnings or profits from
the purchase of a business opportunity
must include a reviewed financial
statement in the disclosure. Study the
financial statement carefully to determine
that the company has adequate
revenues to honor the guarantee.
REMEMBER – Do not sign a contract
or pay any money until you have
thoroughly checked out the business
opportunity. Also, remember that oral
statements and promises that are not
in the disclosure statement are
meaningless.
Secretary of State
Illinois Securities Department
Jefferson Terrace, Ste. 300A
300 W. Jefferson St.
Springfield, IL 62702
217-782-2256
69 W. Washington St.
Ste. 1220
Chicago, IL 60602
312-793-3384
800-628-7937 (toll free)
888-231-1175 (Spanish hotline)
JESSE WHITE
Secretary of State
Illinois Securities
Department
Avoiding
Business
Opportunity
Scams
Printed by authority of the State of Illinois.
May 2007 – 1M – Sec 280.3