2023 Utah Code › Title 13 - Commerce and Trade › Chapter 15 - Business Opportunity Disclosure Act › Part 2 - Seller Duties › Section 202 - Disclosure statements.

Effective 5/4/2022
13-15-202.
Disclosure statements.
(1) An applicant for a proof of disclosure receipt under Subsection 13-15-201(1) shall include the following in a disclosure statement:
(a) the name, address, and principal place of business of:
(i) the applicant; and
(ii) each parent, affiliate, or holding company of the applicant that is responsible for a statement that the applicant makes;
(b) an individual statement from each of the following, detailing the person's business experience for the five-year period immediately before the day on which the applicant files the disclosure statement:
(i) the applicant;
(ii) each parent company of the applicant;
(iii) each current director of the applicant; and
(iv) each current executive officer of the applicant;
(c) for each type of business opportunity the applicant offers to enter into or enters into as a seller:
(i) an individual statement from each person described in Subsections (1)(b)(i) and (ii) detailing the length of time, during the five-year period immediately before the day on which the applicant files the disclosure statement, the person has:
(A) operated a business of the type the purchaser would operate under the business opportunity; and
(B) offered to sell or lease that type of business opportunity;
(ii) each trademark, trade name, service mark, advertisement, or other commercial symbol that identifies a product, equipment, a supply, or a service that the applicant sells or leases under the business opportunity;
(iii) a complete statement of:
(A) the total amount that a purchaser pays to obtain or commence the operation of the business under the business opportunity;
(B) if all or part of a fee or deposit described in Subsection (1)(c)(iii)(A) is refundable, the conditions under which the fee or deposit is refundable;
(C) the product, equipment, supply, or service the applicant provides or performs for a purchaser under the business opportunity; and
(D) each oral, written, visual, or other representation that the applicant makes to a prospective purchaser about specific levels of potential sales, income, or gross and net profits under the business opportunity;
(iv) a complete description of:
(A) the type and length of training the applicant promises to a prospective purchaser, if any;
(B) each service the applicant promises to perform in connection with the placement of equipment, a product, or a supply at a location from which the equipment, product, or supply will be sold or used; and
(C) each agreement the applicant makes with an owner or manager of a location where a purchaser's equipment, product, or supply is placed; and
(v) a complete copy of each contract to which a purchaser under the business opportunity would be party;
(d) the total number of business opportunities the applicant has entered into as a seller in each state;
(e) the total number of business opportunities that the applicant has canceled within the 12 months before the day on which the applicant files the disclosure statement;
(f) the total number of business opportunities, to which the applicant is a party, for which a purchaser has requested a refund or cancellation within the 12 months before the day on which the applicant files the disclosure statement;
(g) a statement that discloses each person identified in Subsection (1)(a) who:
(i) has been convicted of a felony or misdemeanor or pleaded no contest to a felony or misdemeanor charge, if the felony or misdemeanor involved fraud, embezzlement, fraudulent conversion, or misappropriation of property;
(ii) has been held liable or consented to the entry of a stipulated judgment in an administrative or civil action based upon:
(A) fraud, embezzlement, fraudulent conversion, misappropriation of property;
(B) the use of untrue or misleading representations; or
(C) the use of any unfair, unlawful, or deceptive business practice; or
(iii) is subject to an injunction or restrictive order relating to business activity as the result of a government agency action;
(h) a financial statement from the applicant that is:
(i) less than 13 months old; and
(ii) signed by an officer, director, trustee, or general or limited partner of the applicant, under a declaration that certifies that to the signatory's knowledge and belief the information in the financial statement is true and accurate; and
(i) a cover sheet that:
(i) is attached to the front or appears at the beginning of the disclosure statement; and
(ii) conspicuously states in at least 12-point upper- and lower-case boldface type:
(A) the name of the applicant;
(B) the date on which the applicant files the disclosure;
(C) the following notice:
"INFORMATION FOR PURCHASE OF A BUSINESS OPPORTUNITY:
To protect you, the State of Utah has required your seller to give you this disclosure statement. The State of Utah has not verified the accuracy of the information in the disclosure statement."; and
(D) if the applicant makes a representation described in Subsection (1)(c)(iii)(D) or 13-15-102(1)(a)(ii)(D) the following notice:
"CAUTION
The number of purchasers who have earned through this business opportunity an amount in excess of the amount the purchaser pays for the business opportunity is at least _____ which represents at least _____% of the total number of purchasers of this business opportunity."
(2) The disclosure statement described in Subsection (1) may not include material or information other than the material and information required under Subsection (1).
Renumbered and Amended by Chapter 243, 2022 General Session