Sale of Business Opportunities in Alaska
by: State of Alaska
The Sale of Business Opportunities in Alaska Department of Law February 2005
HUGE PROFITS WITH YOUR OWN BUSINESS! MAKE $$$ ON THE INTERNET. WE'LL SHOW YOU HOW! A-1 VENDING, $100,000 POTENTIAL. PREMIUM LOCATIONS. EARN $45,000/YEAR, WORKING PART TIME FROM HOME.
Advertisements like these for making lots of money from your own business sound great. But consumers need to be wary of claims suggesting you can make big profits with little training or effort. This brochure provides information on what you can do to avoid scams involving the sale of business opportunities.
A business opportunity is an arrangement where the seller leases or sells products, equipment, supplies, or services to the buyer so the buyer can start a business, and the seller agrees to perform services such as providing locations where the products can be sold, agreeing to buy back products assembled by the buyer, or providing a marketing plan. While there are legitimate business opportunities for sale, each year thousands of people across the country become victims of business opportunity scams.
Business opportunities appear in many different forms, from stuffing envelopes or doing medical billing at home, to leasing vending machines or ATMs and installing them at designated locations, to creating a website and advertising certain types of products and services on them.
If you're considering purchasing a business opportunity, you should know about Alaska's Sale of Business Opportunity Act, AS 45.66.010 - 45.66.900. This law helps potential buyers by requiring sellers of business opportunities of over $250 to provide information to the Department of Law and to buyers. The Act requires that sellers register with the Department of law, post a $75,000 bond, file a disclosure statement, use a written purchase contract, and meet other requirements. Sellers must register with the Department of Law beginning on April 4, 2005. The registration documents submitted to the Department are public records and may be reviewed by members of the public.
Last Reviewed On: 09/07/05
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