Business Opportunity Registration
The offering of business opportunities in Washington is governed by RCW 19.110 the Business Opportunity Fraud Act. Business opportunities are required to be registered if they come under the definition contained in RCW 19.110.020:
(1) "Business opportunity" means the sale or lease of any product, equipment, supply, or service which is sold or leased to enable the purchaser to start a business; and(a) The seller represents that the seller will provide locations or assist the purchaser in finding locations, on premises neither owned nor leased by the purchaser or seller, for the use or operation of vending machines, display racks, cases, or similar devices or coin-operated amusement machines or similar devices; or
(b) The seller represents that the seller will purchase any product made, produced, fabricated, assembled, modified, grown, or bred by the purchaser using, in whole or part, any product, equipment, supply, or service sold or leased to the purchaser by the seller or
(c) The seller guarantees that the purchaser will earn an income greater than or equal to the price paid for the business opportunity; or
(d) The seller represents that if the purchaser pays a fee exceeding three hundred dollars directly or indirectly for the purpose of the seller providing a sales or marketing program, the seller will provide such a program which will enable the purchaser to derive income from the business opportunity which exceeds the price paid for the business opportunity.
The filing requirements for a business opportunity registration are set forth in RCW 19.110.050 and are summarized in the Frequently Asked Questions Section.
If you have any questions about business opportunity registration please email Jill Vallely at Jill.Vallely@dfi.wa.gov or call 360-902-8801.
If you would like to find out whether a particular business opportunity is registered with the Division please email Jill Vallely at Jill.Vallely@dfi.wa.gov or call 360-902-8801.
If you are thinking of purchasing a business opportunity, whether or not it comes under the definition set forth above, the Division recommends that you read two publications it has developed: Buying a Business Opportunity and Avoiding Business Opportunity Fraud. Both offer useful tips on how to evaluate a potential purchase and avoid losing your investment.
RCW 19.110 - Washington Business Opportunity Fraud Act
Buying a Business Opportunity, a publication of the Washington Securities Division
- Avoiding Business Opportunity Fraud, a publication of the Washington Securities Division
Other Web Sites That May Be Of Interest
- Federal Trade Commission
- Washington State Attorney General Consumer Protection
- Better Business Bureau
- Securities and Exchange Commission
- International Franchise Association
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