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 defined as an assisted marketing plan subject to the Business Opportunity Disclosure Act. You can locate the definition of assisted marketing plan in Utah Code §31-15-2.
An assisted marketing does not include:
- the sale of an ongoing business when the owner sells and intends to sell only that one assisted marketing plan;
- not-for-profit sale of sales demonstration equipment, materials, or sample for a total price of $500 or less; or
- the sale of a package franchise or a product franchise defined by and in compliance with Federal Trade Commission rules governing franchise and business opportunity ventures.
The Business Opportunity Disclosure Act (BODA) requires a sellers of an assisted marketing plan to file specific information with the division annually. Click here to download the filing form.
BODA also requires that a seller of an assisted marketing plan provide the information filed with the division to consumers prior to entering into a transaction. BODA refers to this as a seller’s "disclosure statement" or "prospectus."
Yes. A seller of an assisted marketing plan is required to file specific information with the division annually. The seller’s disclosure document must be current as of the seller’s most recent fiscal year, or no later than 90 days after the close of its most recent fiscal year.
If there is any material change in the information filed with the division, a seller must amend the information by filing the new or correct information with the division. A "material change" means any change in information where there is a reasonable likelihood the decision of the prospective purchaser to purchase or not to purchase the assisted marketing plan would be influenced by the change.
Yes. The fee for an assisted marketing plan seller’s information filing is $200. The fee for a notice of exemption filing is $100. The division accepts the following payment methods: Visa, American Express and MasterCard.
If you are filing an assisted marketing plan seller’s information filing, 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.