Business Opportunity

Required State License(s): The State of Michigan does register business opportunities. The definition of business opportunity is part of the Michigan Consumer Protection Act, Act 331 of 1976. The definition of business opportunity from Section 2 of that act, as used in the act is as follows: Business opportunity means the sale or lease of any products, equipment, or services for the purpose of enabling the purchaser to start a business, and in which the seller represents 1 or more of the following: (i) That the seller will provide locations or assist the purchaser in finding locations for the use or operation of vending machines, racks, display cases, or other similar devices, or currency operated amusement machines or devices, on premises neither owned nor leased by the purchaser or seller. (ii) That the seller may, in the ordinary course of business, purchase any or all products made, produced, fabricated, grown, bred, or modified by the purchaser using whole or in part the supplies, services, or chattels sold to the purchaser. (iii) The seller guarantees that the purchaser will derive income from the business opportunity which exceeds the price paid for the business opportunity; or that the seller will refund all or part of the price paid for the business opportunity, or repurchase any of the products, equipment, supplies, or chattels supplied by the seller, if the purchaser is unsatisfied with the business opportunity. As used in this subparagraph, guarantee means a written or oral representation that would cause a reasonable person in the purchaser's position to believe that income is assured. (iv) That the seller will provide a sales program or marketing program which will enable the purchaser to derive income from the business opportunity which exceeds the price paid for the business opportunity. This subparagraph does not apply to the sale of a marketing program made in conjunction with the licensing of a federally registered trademark or a federally registered service mark, or the sale of a business opportunity for which the purchaser pays less than $500.00 in total for the business opportunity from anytime before the date of sale to anytime within 6 months after the date of sale. It should also be noted, however, that the term business opportunity as used in the Consumer Protection Act does not include the sale of a franchise or the sale of an ongoing business if the owner sells the business and intends to sell only that single business opportunity. It is also unlawful for the seller of a business opportunity to fail to file a notice with the Attorney General on or before the first sale of a business opportunity in Michigan if the purchaser pays more than $500 in total for the business opportunity from anytime before the date of sale to anytime within 6 months after the date of sale. The Attorney General not require the seller to file more than the following: 1. Name of seller. 2. Name under which the seller intends to do business. 3. The seller's principal business address. 4. If seller is not domiciled in Michigan, a consent to service of process. To register with the State of Michigan as a business opportunity, contact the Consumer Protection Division of the Michigan Attorney General's Office. The phone number is (517)373-7117. New Entry: June 1, 1994