Anyone who sells or offers to sell business opportunities must comply with the Business Opportunity Disclosure Act, Title 13, Chapter 15 of the Utah Code, before commencing business in Utah. Sellers of business opportunities are required to file with the division the information that is required under Utah Code Ann. §13-15-4(1) and receive from the division proof of receipt of this filing.
Franchisors of package franchises or product franchises that are in compliance with Federal Trade Commission rules are exempt from filing with the division the information that sellers of business opportunities must file. Instead, these franchisors must file a notice of exemption filing stating that they are in substantial compliance with the requirements of the Federal Trade Commission rules.
Frequently Asked Questions
A business opportunity is an arrangement in which a person sells or leases a product, equipment, supply, or service for a payment of at least $500, for the purpose of enabling the buyer or lessee to start a business, and in which the person makes certain representations to the buyer or lessee. Please read the legal definition in the Business Opportunity Disclosure Act (BODA). Utah Code § 13-15-102(1).
A business opportunity does not include:
- the sale of an ongoing business when the owner sells and intends to sell only that one business;
- not-for-profit sale of sales demonstration equipment, materials, or sample for a total price of $500 or less.
What information must a seller of a business opportunity file with the division? keyboard_arrow_down
The Business Opportunity Disclosure Act (BODA) requires sellers of a business opportunity to annually obtain a proof of disclosure receipt from the division. To obtain the proof of disclosure receipt, a seller must submit a form and certain documentation in accordance with Utah Code § 13-15-202 and division rule, and pay a fee. Click here to download the filing form.
BODA also requires a seller of a business opportunity to provide to consumers the information filed with the division prior to entering into a transaction. BODA refers to this as a seller's "disclosure statement."
Is the seller of a business opportunity required to obtain a proof of disclosure receipt from the division each year? keyboard_arrow_down
Yes. A seller of a business opportunity is required to annually file specific information with the division. The seller's disclosure statement must include a financial statement from the seller that is fewer than 13 months old.
If there is any material change in the information submitted to the division, a seller must amend the information by filing the new or correct information with the division within 30 days of the change. A "material change" means any change in information that a person of ordinary intelligence or prudence would consider important in determining whether or not to purchase an assisted marketing plan, or any change to information required by Utah Code § 13-15-202.
Are there any fees associated with obtaining a proof of disclosure receipt or proof of notice receipt? keyboard_arrow_down
Yes. The fee for a proof of disclosure receipt is $200. The fee for a franchise proof of notice receipt is $100. The division accepts the following payment methods: Visa, American Express, and MasterCard.
If you are filing for a proof of disclosure receipt, you may also submit a check for $200 made payable to the State of Utah. If you prefer to use a credit card for the $200 fee, please use the fax-credit authorization form.
When I try to look up my franchise proof of notice filing in eGov I am unable to find it. What should I do? keyboard_arrow_down
What should I do if someone has sold or has offered to sell me a business opportunity, but has not given me a disclosure statement? keyboard_arrow_down
How can I check to see if a business opportunity seller or a franchisor has filed the necessary information with the division? keyboard_arrow_down
- Be sure you are using Google Chrome
- Please visit this link https://dcp-egov.commerce.utah.gov/ and click on "Register a Business"
- Scroll down and enter your registration number including the *-BSOE* and the renewal ID below and click "search".
- This will link you to the company you are trying to renew.
- Scroll down and below you will be able to create a new password.
- DO NOT CREATE A NEW COMPANY IF YOU ARE ONLY TRYING TO RENEW AN EXISTING FILING.
Once it has been created, log out completely and then log back in to renew your filing.