Business Opportunity Sales

Glossary

Business opportunity: A business opportunity (Bus-Op) is the sale or lease of any products, equipment, supplies, or services for the purpose of enabling the purchaser to start a business.

Business opportunity sales refer to the market that facilitates the buying and selling of pre-existing businesses or business opportunities, which include turnkey operations, franchises, and distributorships, among others.

FDD: The Franchise Disclosure Document is a legal disclosure provided to franchise candidates, outlining 23 disclosures that include information such as fees, the legal relationship, history of the company, and more.

Seller is an individual or entity who offers a business opportunity for sale or lease.

Surety bond: is a type of insurance contract required in North Carolina for anyone offering or selling business opportunities. It’s a form of protection and deterrent against fraudulent behavior. A surety bond is an agreement between three parties: seller (principal), buyer (oblige), and the surety company. This bond guarantees that the seller will comply with applicable laws and regulations governing the sale of business opportunities in North Carolina. Bond amounts typically range from $10,000 to $25,000. For details, see The Consumer’s Guide to Surety Bonds.