§ 59.1-264. Written disclosure statement required
A. At least forty-eight hours prior to the time the purchaser signs a business opportunity contract, or at least forty-eight hours prior to the receipt of any consideration therefor by the seller, whichever occurs first, the seller shall provide the prospective purchaser with a written document, the cover sheet of which is entitled in at least ten-point boldface capital letters "DISCLOSURES REQUIRED BY VIRGINIA LAW." Under this title shall appear the following statement in at least ten-point type: "The Commonwealth of Virginia has not reviewed and does not approve, recommend, endorse or sponsor any business opportunity. The information contained in this disclosure has not been verified by the Commonwealth. If you have any questions about this investment, see an attorney before you sign a contract or agreement." Nothing except the title and required statement shall appear on the cover sheet. The disclosure document shall also contain the following:
1. The name of the seller; whether the seller is doing business as an individual, partnership, or corporation; the names under which the seller has done, is doing or intends to do business in Virginia; and the name of any parent or affiliated company which is legally obligated to engage in business transactions with purchasers.
2. The names, addresses and titles of the seller's officers, directors, trustees, general partners, general managers, principal executives, and any other person charged with responsibility for the seller's business activities relating to the sale of business opportunities.
3. The length of time the seller has:
a. Sold business opportunities;
b. Sold business opportunities involving the product, products, equipment, supplies, or services currently being offered to the purchaser.
4. A full and detailed description of the actual services that the business opportunity seller agrees to perform for the purchaser.
5. A copy of a financial statement of the seller, which shall not be older than thirteen months, which shall be updated to reflect any material changes in the seller's financial condition.
6. The following statement:
"If the seller fails to deliver the product, products, equipment or supplies necessary to begin substantial operation of the business within forty-five days of the delivery date stated in your contract, you may notify the seller in writing of your termination of the contract."
B. If training of any type is promised by the seller, the disclosure statement shall set forth a complete description of the training and the length of the training.
C. If the seller promises services to be performed in connection with the placement of the equipment, product, products, or supplies at any location or at various locations, the disclosure statement must set forth the full nature of those services as well as the nature of the agreements to be made with the owners or managers of the location or locations where the purchaser's equipment, product, products or supplies will be placed.
D. If the business opportunity seller is required to secure a bond or establish a trust deposit pursuant to § 59.1-265, the document shall state in at least ten-point type, either:
1. "As required by Virginia law, the seller has secured a bond issued by
.................... (name and address of surety company), a surety company
authorized to do business in this State. Before signing a contract to purchase
this business opportunity, you should check with the surety company to
determine the bond's current status," or
2. "As required by Virginia law, the seller has established a trust account
with .................... (name and address of bank or savings institution).
Before signing a contract to purchase this business opportunity, you should
check with the bank or savings institution to determine the current status of
the trust account."
E. If the seller makes any statement concerning sales or earnings or any range of sales or earnings that the purchaser may reasonably expect to be made through this business opportunity, the document shall disclose:
1. The total number of purchasers of business opportunities within the United States involving the product, products, equipment, supplies or services being offered who, to the seller's knowledge, have actually received earnings in the amount or range specified, within three years prior to the date of the disclosure statement, and
2. The total number of purchasers of business opportunities within the United States involving the product, products, equipment, supplies, or services being offered within three years prior to the date of the disclosure statement.
(1979, c. 523.)
Sections: Previous 59.1-262 59.1-263 59.1-264 59.1-265 59.1-266 59.1-267 59.1-268 59.1-269 NextLast modified: April 16, 2009