Business Opportunity or Franchise?

What's the difference between a business opportunity and a franchise?
Every franchise is a business opportunity but not every business opportunity is a franchise. A franchise must include three key elements:

1. Ongoing royalties or fees
2. Use of the franchise trademarks to do business
3. A system or process for conducting the business

When you buy a franchise, the relationship is ongoing. The franchisor is likely to have some say about the quality of the goods or services you sell and the methods you use to acquire the products or provide the service. They will also collect a royalty or other fee from you on an ongoing basis. In return they will give you guidance and training as well as name recognition.

A business opportunity does not usually come with the control or the support that a franchise does. However, sometimes the company selling the opportunity may act as a service bureau. And sometimes the opportunities are structured in such a way that they appear to be franchises even though they aren't. Some states now require business opportunities to register in the state and to provide disclosure documents to consumers intending to purchase the opportunity.