Business Opportunity Sales

• That the seller will provide a sales program or marketing program which will enable the purchaser to derive income from the bus-op which exceeds the price paid for the bus-op. (This does not apply to the sale of a marketing program made in conjunction with the licensing of a federally registered trademark or a federally registered service mark, or when the purchaser pays less than $200.)

Note that a Bus-Op is not the sale of an on-going business when the owner of the business sells and intends to sell only that one business.

Required Documents

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

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

These statutes should be reviewed to determine that all information required are contained within the disclosure documentation, including the required coversheet.

Irrevocable Consent

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

Update of Information

• The registration is to be updated as any information is changed or there is a change in the status of the surety bond or trust account. If there are no changes, the information is to be confirmed annually.