§71-802. Definitions.
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As used in the Oklahoma Business Opportunity Sales Act, Section 801 et seq. of this title, unless otherwise provided:
1. "Administrator" means the Administrator of the Oklahoma Department of Securities.
2. "Advertising" means any circular, prospectus, advertisement or other material or any communication by radio, television or other electronic transmission, newspapers, magazines, pictures or similar means used in connection with an offer or sale of any business opportunity.
3. a. "Business opportunity" means a contract or agreement,
between a seller and purchaser, express or implied,
orally or in writing, wherein it is agreed that the
seller or a person recommended by the seller shall
provide to the purchaser any products, equipment,
supplies or services enabling the purchaser to start a
business and the seller represents directly or
indirectly, orally or in writing, that:
(1)The seller or a person recommended by the seller
will provide or assist the purchaser in finding
locations for the use or operation of vending
machines, racks, display cases or other similar
devices, on premises neither owned nor leased by
the purchaser or seller;
(2)The seller or a person recommended by the seller
will provide or assist the purchaser in finding
outlets or accounts for the purchaser's products
or services;
(3)The seller or a person specified by the seller
will purchase any or all products made, produced,
fabricated, grown, bred or modified by the
purchaser;
(4)The seller guarantees that the purchaser will
derive income from the business which exceeds the
price paid to the seller;
(5)The seller will refund all or part of the price
paid to the seller, or repurchase any of the
products, equipment or supplies provided by the
seller or a person recommended by the seller, if
the purchaser is dissatisfied with the business;
or
(6)The seller will provide a marketing plan.
b. "Business opportunity" does not include:
(1)Any offer or sale of an on-going business
operated by the seller and to be sold in its
entirety;
(2)Any offer or sale of a business opportunity to an
on-going business where the seller will provide
products, equipment, supplies or services which
are substantially similar to the products,
equipment, supplies or services sold by the
purchaser in connection with the purchaser's on-
going business;
(3)Any offer or sale of a business opportunity which
involves a marketing plan made in conjunction
with the licensing of a federally registered
trademark or federally registered service mark
provided that the seller has a minimum net worth
of One Million Dollars ($1,000,000.00) as
determined on the basis of the seller's most
recent audited financial statements prepared
within thirteen
(13)months of an offer or sale
in accordance with generally accepted accounting
principles and audited in accordance with
generally accepted auditing standards. Net worth
may be determined on a consolidated basis where
the seller is at least eighty percent (80%) owned
by one person and that person expressly
guarantees the obligation of the seller with
regard to the offer or sale of any business
opportunity claimed to be excluded under this
division; or
(4)Any offer or sale of a business opportunity by an
executor, administrator, sheriff, marshal,
receiver, trustee in bankruptcy, guardian or
conservator or a judicial offer or sale of a
business opportunity.
4. "Department" means the Oklahoma Department of Securities.
5. "Franchise" means a contract or agreement between a seller and a purchaser, express or implied, orally or in writing, where it is agreed that:
a. A franchisee is granted the right to engage in the
business of offering, selling or distributing goods or
services under a marketing plan prescribed in
substantial part by a franchisor; and
b. The operation of the franchisee's business pursuant to
such a plan is substantially associated with the
franchisor's business and trademark, service mark,
trade name, logotype, advertising or other commercial
symbol designating the franchisor or its affiliate.
For the purposes of this paragraph, "franchisee" shall mean a person to whom a franchise is granted and "franchisor" shall mean a person who grants a franchise.
6. "Marketing plan" means advice or training, provided to the purchaser by the seller or a person recommended by the seller, pertaining to the sale of any products, equipment, supplies or services and the advice or training includes, but is not limited to, preparing or providing:
a. Promotional literature, brochures, pamphlets or
advertising materials;
b. Training regarding the promotion, operation or
management of the business opportunity; or
c. Operational, managerial, technical or financial
guidelines or assistance.
7. "Offer" or "offer to sell" includes every attempt to dispose of a business opportunity for value or solicitation of an offer to purchase a business opportunity.
8. "On-going business" means an existing business that, for at least six
(6)months prior to the offer, has been operated from a specific location, has been open for business to the general public and has substantially all of the equipment and supplies necessary for operating the business.
9. "Person" means an individual, corporation, trust, partnership, limited liability company, incorporated or unincorporated association or any other entity.
10. "Purchaser" means a person who enters into a contract or agreement for the acquisition of a business opportunity or a person to whom an offer to sell a business opportunity is directed.
11. "Sale" or "sell" includes every contract or agreement of sale, contract to sell, disposition of a business opportunity or interest in a business opportunity for value.
12. "Seller" means a person who sells or offers to sell a business opportunity or any agent or person who directly or indirectly acts on behalf of such person. Added by Laws 1985, c. 157, § 2, eff. Nov. 1, 1985. Amended by Laws 1992, c. 169, § 1, eff. Sept. 1, 1992; Laws 1997, c. 279, § 22, eff. July 1, 1997; Laws 1999, c. 109, § 11, eff. July 1, 1999.