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There are many legitimate franchise and distribution opportunities available, but typically these require substantial investment funds and time committments. There are also many schemes geared for fleecing inexperienced investors who are taken in by promises of unrealistic profits and relatively low investments.
Persons considering franchises and distributorships should be skeptical of claims of:
Unrealistic profits
Guaranteed earnings
Protected market areas
Money back guarantee (with conditions of any type)
Additionally potential investors are warned against promoters who are more interested in selling distributorships or franchises than they are in pushing the product or service. These situations often signify pyramid-type schemes. (Also see Marketing: Multi-Level Marketing)
Before considering any franchise or distributorship, it is always a good idea to seek out and contact current investors to get a real world opinion from people experienced. Often the reality of the business may have little in common with the sales pitch.
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