business opportunity
Definition
A business opportunity is a packaged deal where someone sells you the right to start a specific type of business using their system, products, or services. Unlike a franchise, you don't get to use a brand name, but you do pay for training, equipment, or a ready-made setup that's supposed to help you make money. Many states have special laws requiring sellers to give you detailed written disclosures before you hand over any cash.
Example
A company sells you a vending machine route for $10,000, promising you already have locations secured and a supplier lined up, which makes it a business opportunity under most state laws. You own the machines outright but owe no ongoing royalties to the seller.
Watch Out
Scammers love to use business opportunity language to sell overpriced starter kits with inflated income promises, so always demand the required disclosure documents and have a lawyer review them before signing anything.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.