551A.1 Definitions. 1. “Advertising” means a circular, prospectus, advertisement, or other material, or a communication by radio, television, pictures, or similar means used in connection with an offer or sale of a business opportunity. 2. a. “Business opportunity” means an opportunity to start a business according to the terms of a contract between a seller […]
551A.10 Penalties. 1. A seller who willfully violates the requirements for disclosure or for the contents of a business opportunity contract pursuant to section 551A.3, who provides misleading advertising as provided in section 551A.9, who willfully violates a rule under this chapter, or who willfully violates an order of which the person has notice, upon […]
551A.2 Scope. 1. The provisions of this chapter concerning sales and offers to sell apply to persons who sell or offer to sell a business opportunity when any of the following apply: a. An offer to sell is made in this state. b. An offer to purchase is made and accepted in this state. c. […]
551A.3 Disclosure documents — contracts. 1. Disclosure document required. A person required to file an irrevocable consent to service of process with the secretary of state as a seller as provided in section 551A.7 shall not act as seller in this state unless the person provides a written disclosure document to each purchaser. The person […]
551A.4 Exemptions from requirements — burden of proof. 1. The following business opportunities are exempt from the requirements of section 551A.3: a. The offer or sale of a business opportunity if the purchaser is a bank, federally chartered savings and loan association, trust company, insurance company, credit union, or investment company as defined by the […]
551A.5 Waiver of rights. A waiver of this chapter by a purchaser prior to or at the time of sale is contrary to public policy and is void and unenforceable. An attempt by a seller to have a purchaser waive any rights given in this chapter is a violation of this chapter. [81 Acts, ch […]
551A.6 Cancellation of contract. The purchaser has the right to cancel a contract with a seller for a business opportunity for any reason at any time within three business days of the date the purchaser signs the contract or the date the contract is accepted by the seller whichever is later. The notice of the […]
551A.7 Service of process — irrevocable consent. A seller shall file an irrevocable consent with the secretary of state. The seller shall file the irrevocable consent prior to executing a business opportunity contract or engaging in the sale of a business opportunity in this state. The irrevocable consent shall appoint the secretary of state to […]
551A.8 Liability — remedies. 1. A person who violates the requirements for disclosure or for the contents of a business opportunity contract pursuant to section 551A.3 is liable to the purchaser in an action for rescission of the contract, or for recovery of all money or other valuable consideration paid for the business opportunity, and […]
551A.9 Fraudulent practices. 1. Misleading statements. A person shall not make or cause to be made a misleading statement in a disclosure document required pursuant to section 551A.3 or in a proceeding under this chapter. The statement shall be deemed to be misleading if any of the following apply: a. At the time and in […]
