A franchise is a method of doing business. Small business owners own individual store locations, but do business under varying degrees of control by the franchisor owners of the trademarks displayed by the franchisee (small business). Franchising is a popular way for small businesses to take advantage of the expertise and support of a company that has made a significant investment in promoting a product or service and has committed to supporting its franchisees in many ways in return for a percentage of the gross receipts of those businesses. However, the area has also seen numerous abuses on the part of franchisors. The Florida Department of Agriculture and Consumer Services regulates franchises in the state of Florida, and requires registration and detailed offering circulars on the part of franchisors.

A business opportunity, by contrast, involves the purchase of a product, service, method of delivering the product or territory for distribution. Business opportunities are far more likely to involve abuses on the part of the seller than true franchises. Business opportunities are notoriously difficult to perform adequate due diligence on, with "satisfied customers" often turning out to be paid "singers" or individuals receiving more assistance to succeed than any ordinary purchaser ever will. There are legitimate business opportunities, but in general you should beware any that promise unrealistic profits for minimal effort. In some cases a business opportunity can also be considered an unregistered security, and the promoters can be subject to prosecution by the Securities and Exchange Commission.

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