I noticed that instead of the State of North Carolina disclosure statement I can choose to provide the Federal Trade Commission Disclosure Document found at 16 C.F.R. 435. Do I have to use the table of contents per the FDD with page numbers or can I create my own table of contents?
If you will be using the Federal Trade Commission Disclosure Document per 16 C.F.R. 435, you will need to provide the format of the disclosure document as stated. Which means you will have to provide page numbers on the Table of Contents page and use the terminology within the stated table of contents.
Likewise, if you are using the North Carolina Disclosure Document, you must follow the structure as stated in the statute.
If I have a complaint, should I contact the Secretary of State?
No, you should contact the Attorney General’s Office.
How can I get a copy of a company’s disclosure statement?
If the company is registered, you may search the business opportunity name and view the documents filed, which include the disclosure statement.
Can I find a listing of business opportunities online?
You will not find a listing online, however, you can search for specific business opportunity names to view filings. If you need a listing, please call 919-814-5408 or email [email protected].
How do I know if my company needs to be registered?
We can’t tell you if you need to register. This law is complicated. There may be serious consequences if you don’t register and you should have. We strongly suggest that you speak with an attorney of your choice to help you decide if you need to register.
What happens if a company does not register with you?
If you don’t register with us, and you should have, you may be committing a crime. It’s a Class 1 misdemeanor to not file with us when you should.
Do I have to register each year?
Yes, you have to renew your filing every year. Your business opportunity franchise goes inactive if you don’t.
I’m a business opportunity seller. Do I have to get a bond or set up a trust account?
Yes, if you say that:
- The buyer will get income from the business opportunity which will be more than is paid for it ; or
-
You say that if the buyer pays you more than $200 up front and isn’t satisfied with the business opportunity, you will:
- Refund all or part of the price paid for the business opportunity, or
- Buy back any of the products, equipment, or supplies you supplied.
Does the Secretary of State accept the (UFOC) Uniform Franchising Offering Circular?
No, the NC Secretary of State as of September 22, 2023 and according to Session Law 203-130, the NC Secretary of state no longer is able to accept the UFOC.
What documents do I have to file?
Documents that must be filed under this Act with the Secretary of State include:
- Surety Bond or Trust Account
-
If the bond is not applicable to your submission, please state so on the documentation.
- One (1) copy of a surety bond or formal notification of the establishment of a trust account, if required.
- The bond or trust notification should be reviewed to determine compliance with G.S. § 66-96.
- The bond or trust account notification must be submitted with the disclosure statement.
- Disclosure Statement
-
The seller of every business opportunity shall file the Secretary two (2) copies of either disclosure statement as listed below:
- North Carolina Disclosure Statement N.C.G.S. §66-95
- A franchise disclosure document that complies in all material respects with 16 C.F.R. Part 436
- Irrevocable Consent
-
- An irrevocable consent to service of process appointing the Secretary of State attorney for the acceptance of lawful process.
| Document | Number of Copies | Fees |
|---|---|---|
| Surety Bond or Formal Notification of Trust Account | 2 | No fee |
| Disclosure Statement | 2 | $250.00 |
| Consent to Service of Process | 1 | No fee |
| Annual Updates | 2 | $250.00 |
Can you deny or reject my Business Opportunity Filing?
Yes, we can reject your registration if it is incomplete. If that happens, we’ll return the documents to you so you can correct them. We will hold your fee, until you return the corrected document. It will help us process your document faster if you include the Document ID number on anything you send us.
How long will it take for you to process my business opportunity filing?
It usually takes us 2 – 3 business days to process a Business Opportunity filing.
Can I file my business opportunity paperwork online?
No, we don’t have an online process for Business Opportunity filings.
Where should I send the filing?
-
In Person Delivery or Paid Delivery Service
NC Secretary of State
Business Opportunity Sales
2 South Salisbury
Raleigh, NC 27601
-
United States Postal Service
NC Secretary of State
Business Opportunity Sales
PO Box 29622
Raleigh, NC 27626-0622
Where can I find the forms for business opportunity filings?
Two forms are on line:
There is no form for the disclosure statement. That’s because you have to prepare it and make sure it includes all required information.
What are the fees for a Business Opportunity Registration?
| Document | Number of Copies | Fees |
|---|---|---|
| Surety Bond or Formal Notification of Trust Account | 2 | No fee |
| Disclosure Statement | 2 | $250.00 |
| Consent to Service of Process | 1 | No fee |
| Annual Updates | 2 | $250.00 |
What is a surety Bond?
The NC Department of Insurance published A Consumer’s Guide to Surety Bonds.
Where do I find a bond company?
The Department of Insurance can provide a listing of bonding companies. You may contact them at 855-408-1212, 919-733-0085 (fax) or online http://www.ncdoi.com/.
I have more questions about Business Opportunity Sales. Who can I contact?
You can:
- Call 919-814-5408 or
- Email [email protected]
There is also a federal law that applies to Business Opportunity Sales. The Federal Trade Commission enforces that law.