Business Opportunity Sales

No, you should contact the Attorney General’s Office.

If the company is registered, you may search the business opportunity name and view the documents filed, which include the disclosure statement.

You will not find a listing online, however, you can search for specific business opportunity names to view filings. If you need a listing, call 919-814-5408 or email [email protected].

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.

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.

Yes, you have to renew your filing every year. Your business opportunity franchise goes inactive if you don’t.

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.

No, the State no longer accepts the Uniform Franchising Offering Circular. But we will accept the franchise disclosure document that complies in all material respects with 16 C.F.R. Part 436.

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, 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

Two copies of either the franchise disclosure document that complies in all material respects with 16 C.F.R. Part 436(PDF) or the State disclosure statement which is found to N.C.G.S. §66-95(2)(PDF). Links to both of these are:

• N.C.G.S. §66-95
• ftc.gov(pdf)

Irrevocable Consent

• An irrevocable consent to service of process appointing the Secretary of State attorney for the acceptance of lawful process.

Fees

Surety Bond or Formal Notification of Trust Account

2 copies

No fee

Service of Process Agent

2 copies

$250.00

Service of Process Agent

1 copy

No fee

Annual Updates

2 copies

$250.00

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.

It usually takes us 2 – 3 business days to process a Business Opportunity filing.

No, we don’t have an online process for Business Opportunity filings.

Two forms are on line:

• Consent to Service of Process Form (PDF)
• Business Opportunity Surety Bond Form (PDF)

There is no form for the disclosure statement. That’s because you have to prepare it and make sure it includes all required information.

• Surety Bond or Formal Notification of Trust Account
  • 2 copies
  • No fee
• Disclosure Statement
  • 2 copies
  • $250.00
• Consent to Service of Process
  • 1 copies
  • No fee
• Annual Updates
  • 2 copies
  • $250.00

The NC Department of Insurance published A Consumer’s Guide to Surety Bonds.(PDF)

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 https://www.ncdoi.gov/.

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.

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.