Ever hear the phrase "All that glitters is not gold"?  It applies to fraudulent display rack business opportunities. Fraudulent promoters across the country are offering entrepreneurs the chance to make $100,000 or more a year selling licensed products from well-known companies.

    Their pitches include some great claims: No selling. You won't have to quit your job. You can work from home. You can make your own hours. Indeed, they say that for an investment of as little as $15,000, all you have to do is restock profitable high-traffic display rack locations like malls, shopping centers, gift shops, convenience stores, supermarkets and chain drug stores.  Sounds like a dream opportunity, right?   Wrong!  Entrepreneurs who invest in business opportunities like these rarely make the big money they're promised.

    Promoters often supply undesirable merchandise -- for example, outdated products that may never have captured the public's attention -- and unprofitable locations, in fact, would-be business owners generally lose their entire investment.  If you're thinking about investing in a display rack opportunity, be sure to check out their claims to avoid going to display "rack and ruin."

• Check out the promoter.   Call the legal department of the company whose merchandise is being promoted.   Find out whether the promoter is affiliated with the company.  Ask if the company has ever threatened trademark action against the promoter.

• Ask how much of your investment will go for "display racks and initial inventory," and how much goes to promoters or middleman fees.  The promoter's sales commissions on your purchase of products may eat up as much as 30-40 percent of your investment.

• Ask the promoter if you'll be charged wholesale or retail prices for your initial inventory.  If you pay retail, you'll have to mark up the price to make a profit.  That means you probably won't move much inventory.  Even if the promoter agrees to sell your inventory at wholesale prices, you may get out-of-date merchandise that never sold in the first place.   Either way, you lose.  Remember, if you pay sales tax, the inventory is not wholesale.

• Check out locator companies.  These are third-party firms, usually recommended by the promoter, that you hire to locate display rack sites.  The firms may claim they've done market surveys in your area.  Ask for copies.  Typically, a firm charges you $200 per site; the locator gets half the fee.  Since high-traffic stores could sell popular consumer products on their own, locators may be able to secure low traffic locations only.

• Get a list of previous investors, as well as their addresses and phone numbers.  The FTC's Franchise Rule requires it, and any legitimate business should be happy to provide it.  If possible, visit one or two investors -- and their locations -- in person.  If you call only one person, you may talk to a "singer" or a "shill" -- a person hired by the promoter to give a favorable report on the business.

• Get earnings claims in writing.  Insist that the promoter give you written substantiation in the disclosure document required by the Franchise Rule.  Be sure it includes the number and percent of others who have earned at least as much as the promoter claims.  If the promoter hesitates or refuses, walk away.  Don't believe what they say about sales, profits or income.

• Consult an attorney, accountant or other trusted financial or business advisor before you sign any agreement or make any up-front payments. Ask your attorney to review the company's contract and advise you on how best to proceed.