Business Opportunities

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.

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."

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 .

Before a person offers for sale or sells a franchise to be located in Utah or to a resident of Utah, the person must obtain a proof of notice receipt from the Division. To obtain a proof of notice receipt, a franchisor must submit a proof of notice filing to the Division online and pay a fee. Utah Code § 13-15-201(2). You can renew or file an initial registration by visiting https://dcp.utah.gov/businesses/opportunities/.

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.