(1) “Business opportunity contract” means an agreement that obligates or is intended to obligate a purchaser to a seller.
(2) “Buy-back” or “secured investment” means a representation that implies a purchaser's payment is protected from loss.
(3) “Equipment” includes electrical devices, video and audio devices, molds, display units, including
display racks, and machines, including coin-operated game machines and vending and
other machines that dispense products.
(4) “Initial consideration” means the total amount a purchaser is obligated to pay under a business opportunity
contract before or at the time products, equipment, supplies, or services are delivered
or within six months after the date the purchaser begins operation of the business
opportunity plan. The term means the total sale price if the contract states a specific total sale price for
purchase of the business opportunity plan and the total sale price is to be paid as
a down payment and one or more additional payments. The term does not include the not-for-profit sale of sales demonstration materials,
samples, or equipment for not more than $500.
(5) “Marketing program” means advice or training that a seller or a person recommended by a seller gives
to a purchaser regarding the sale of products, equipment, supplies, or services. The term includes the preparation or provision of:
(A) a brochure, pamphlet, or advertising material, including promotional literature;
(B) training regarding the promotion, operation, or management of a business opportunity;
(C) operational, managerial, technical, or financial guidelines or assistance.
(6) “Product” includes tangible personal property.
(7) “Purchaser” means a person who becomes or is solicited to become obligated under a business
(8) “Seller” means a principal or agent who sells or leases or offers to sell or lease a business
(9) “Services” includes any assistance, guidance, direction, work, labor, or other services provided
by a seller to initiate or maintain a business opportunity.
(10) “Supplies” includes materials used to make, produce, grow, or breed a product or item.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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