Texas Business And Commerce Code Title 4, Chapter 51 - Business Opportunities

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 51.001 - Short Title
  This chapter may be cited as the Business Opportunity Act. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April...
• Texas Section 51.002 - General Definitions
  In this chapter: (1) "Business opportunity contract" means an agreement that obligates or is intended to obligate a purchaser to a seller. (2) "Buy-back" or...
• Texas Section 51.003 - Definition Of Business Opportunity
  (a) In this chapter, "business opportunity" means a sale or lease for an initial consideration of more than $500 of products, equipment, supplies, or services...
• Texas Section 51.004 - Liberal Construction And Application
  (a) This chapter shall be liberally construed and applied to: (1) protect persons against false, misleading, or deceptive practices in the advertising, offering for sale...
• Texas Section 51.005 - Burden Of Proof
  A person who claims to be exempt from this chapter has the burden of proving the exemption. Amended by: Acts 2007, 80th Leg., R.S., Ch....
• Texas Section 51.006 - Waiver
  A waiver of this chapter is contrary to public policy and void. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01,...
• Texas Section 51.007 - Maintenance Of Records
  (a) A seller shall maintain a complete set of books, records, and accounts of business opportunity sales made by the seller. (b) A document relating...
• Texas Section 51.008 - Filing Fee
  The secretary of state may charge a reasonable fee to cover the costs incurred as a result of a filing required by Subchapter B or...

SUBCHAPTER B REGISTRATION OF BUSINESS OPPORTUNITY

• Texas Section 51.009 - Rules
  The secretary of state may adopt rules to administer and enforce this chapter. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec....
• Texas Section 51.051 - Filing Of Disclosure Statements And List Of Sellers
  Before a sale or offer for sale, including advertising, of a business opportunity, the principal seller must register the business opportunity with the secretary of...
• Texas Section 51.052 - Updating Of Information On File
  (a) A copy of a disclosure statement filed under Section 51.051 must be updated through a new filing: (1) annually; and (2) when a material...
• Texas Section 51.053 - Filing Of Disclosure Document From Other Regulatory Agency
  Instead of filing with the secretary of state a copy of a disclosure statement, a seller may file a copy of a similar document required...

SUBCHAPTER C BOND, TRUST ACCOUNT, OR LETTER OF CREDIT

• Texas Section 51.054 - Filing Of Copy Of Bond Or Notification Of Account
  A principal seller who is required to obtain a bond or establish a trust account under Subchapter C shall contemporaneously file with the secretary of...
• Texas Section 51.101 - Bond, Trust Account, Or Letter Of Credit Required
  (a) Before a seller makes a representation described by Section 51.003(a)(1) or otherwise represents that the purchaser is assured of making a profit from a...

SUBCHAPTER D DISCLOSURE STATEMENT

• Texas Section 51.102 - Action Against Bond, Trust Account, Or Letter Of Credit
  (a) A person may bring an action against the bond, trust account, or irrevocable letter of credit obtained or established under Section 51.101 to recover...
• Texas Section 51.151 - Disclosure To Purchaser Of Business Opportunity
  (a) Except as provided by Section 51.164, a seller must provide a purchaser with a written disclosure statement that meets the requirements of this subchapter....
• Texas Section 51.152 - Cover Sheet Of Disclosure Statement
  (a) A disclosure statement must have a cover sheet titled, in at least 12-point boldface capital letters, "DISCLOSURES REQUIRED BY TEXAS LAW." The following statement...
• Texas Section 51.153 - Contents: Names And Addresses
  A disclosure statement must contain: (1) the name of the seller; (2) each name under which the seller has transacted, is transacting, or intends to...
• Texas Section 51.154 - Contents: Sales Periods
  A disclosure statement must: (1) specify the period during which the seller has sold business opportunities; and (2) specify the period during which the seller...
• Texas Section 51.155 - Contents: Services Description
  A disclosure statement must contain: (1) a detailed description of the actual services the seller undertakes to perform for the purchaser; and (2) if the...
• Texas Section 51.156 - Contents: Updated Financial Statement
  A disclosure statement must contain a copy of a financial statement of the seller that: (1) was prepared according to generally accepted accounting principles within...
• Texas Section 51.157 - Contents: Training Description
  If the seller promises training, the disclosure statement must contain a complete description of the training, including: (1) the length of the training; and (2)...
• Texas Section 51.158 - Contents: Security Description
  If the seller is required to obtain a bond or establish a trust account, the disclosure statement must contain one of the following statements, as...
• Texas Section 51.159 - Contents: Delivery Date; Cancellation Of Contract
  If the seller is required to deliver to the purchaser the product, equipment, or supplies necessary to begin substantial operation of the business and states...
• Texas Section 51.160 - Contents: Sales Or Earnings Representation
  If the seller makes a statement concerning sales or earnings that may be made through the business opportunity, the disclosure statement must contain a statement...
• Texas Section 51.161 - Contents: Legal Action History
  (a) A disclosure statement must contain a statement disclosing any person described by Section 51.153 who: (1) has, during the previous seven fiscal years: (A)...
• Texas Section 51.162 - Contents: Bankruptcy Or Reorganization
  (a) A disclosure statement must contain a statement disclosing any person described by Section 51.153 who has, during the previous seven fiscal years: (1) filed...
• Texas Section 51.163 - Contents: Contract Copy
  A disclosure statement must contain a copy of the business opportunity contract that the seller uses as a matter of course and that will be...

SUBCHAPTER E BUSINESS OPPORTUNITY CONTRACT

• Texas Section 51.164 - Use Of Disclosure Document From Other Regulatory Agency
  Instead of providing a disclosure statement to a purchaser under this subchapter, a seller may provide a copy of a similar document required by the...
• Texas Section 51.201 - Form Of Business Opportunity Contract
  A business opportunity contract must be in writing and include, in 10-point type or in handwriting of an equivalent size, the following: (1) the terms...
• Texas Section 51.202 - Delivery Of Copies Of Documents To Purchaser
  A copy of the completed business opportunity contract and any other document the seller requires the purchaser to sign shall be given to the purchaser...

SUBCHAPTER F TERMINATION OF BUSINESS OPPORTUNITY REGISTRATION

• Texas Section 51.203 - Effect Of Assignment Of Business Opportunity Contract
  An assignee of a business opportunity contract or of the seller's rights under the contract is subject to all equities, rights, and defenses of the...
• Texas Section 51.251 - Voluntary Termination Of Business Opportunity Registration
  The principal seller of a registered business opportunity may voluntarily terminate the business opportunity's registration with the secretary of state if: (1) the registered business...

SUBCHAPTER G ENFORCEMENT

• Texas Section 51.252 - Involuntary Termination Of Business Opportunity Registration
  (a) The secretary of state may terminate the registration of a business opportunity registered under Section 51.051 if the seller does not comply with Section...
• Texas Section 51.301 - Prohibited Acts
  A seller may not: (1) employ a representation, device, scheme, or artifice to deceive a purchaser; (2) make an untrue statement of a material fact...
• Texas Section 51.302 - Deceptive Trade Practice; Remedies
  (a) A violation of this chapter is a false, misleading, or deceptive act or practice under Section 17.46. (b) A public or private right or...
• Texas Section 51.303 - Review And Suit By Attorney General
  (a) The attorney general may review the copy of a disclosure statement filed with the secretary of state under Subchapter B. (b) If the disclosure...

Last modified: September 28, 2016