Oklahoma § 71-803 - Exemptions

§ 71-803. Exemptions

The following business opportunities are exempt from Sections

806 through 811 of this title:

1. Any offer or sale of a business opportunity for which the

immediate cash payment made by the purchaser for any business

opportunity is at least Twenty-five Thousand Dollars ($25,000.00) if

the immediate cash payment does not exceed twenty percent (20%) of

the purchaser's net worth as determined exclusive of principal

residence, furnishings therein, and automobiles. The Administrator

may by rule withdraw or further condition the availability of this

exemption.

2. Any offer or sale of a business opportunity for which the

purchaser is required to make a payment to the seller or a person

recommended by the seller not to exceed Five Hundred Dollars

($500.00). For purposes of this paragraph, "payment" means the

total amount the purchaser becomes obligated to pay to the seller or

to any third party either prior to or at the time of delivery of the

products, equipment, supplies or services or within one (1) year of

the commencement of operation of the business opportunity by the

purchaser. If payment is over a period of time, "payment" shall

include the sum of the down payment and the total periodic payments.

If the purchaser may enter at different levels, "payment" means the

Oklahoma Statutes - Title 71. Securities

total sum the purchaser is obligated to pay to enter at the level

chosen by the purchaser.

3. Any offer or sale of a business opportunity where the seller

has a net worth of not less than 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 such

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 obligations of the

seller with regard to the offer or sale of any business opportunity

claimed to be exempt under this paragraph. The Administrator may by

rule withdraw or further condition the availability of this

exemption.

4. Any offer or sale of a business opportunity where the

purchaser has a net worth of not less than Two Hundred Fifty

Thousand Dollars ($250,000.00). Net worth shall be determined

exclusive of principal residence, furnishings therein, and

automobiles. The Administrator may by rule withdraw or further

condition the availability of this exemption.

5. Any offer or sale of a business opportunity where the

purchaser is a bank, savings and loan association, trust company,

insurance company, credit union, investment company as defined by

the Investment Company Act of 1940, pension or profit sharing trust

or other financial institution or institutional buyer or a dealer

registered pursuant to the Oklahoma Securities Act, where the

purchaser is acting for itself or in a fiduciary capacity.

6. Any offer or sale of a business opportunity or franchise as

defined in Section 802 of this title provided that the seller

delivers to each purchaser fourteen (14) calendar days prior to the

earlier of the execution by a purchaser of any contract or agreement

imposing a binding legal obligation on the purchaser or the payment

by a purchaser of any consideration in connection with the offer or

sale of the business opportunity or franchise, one of the following

disclosure documents:

a.

a disclosure document prepared in accordance with the

guidelines adopted by the North American Securities

Administrators Association, Inc., or

b.

a disclosure document prepared pursuant to the Federal

Trade Commission rule entitled Disclosure Requirements

and Prohibitions Concerning Franchising, 16 C.F.R.

Part 436 or the Business Opportunity Rule, 16 C.F.R.

Part 437 as applicable.

For the purposes of this paragraph, a personal meeting shall

mean a face-to-face meeting between the purchaser and the seller or

their representatives, which is held for the purpose of discussing

Oklahoma Statutes - Title 71. Securities

the offer or sale of a business opportunity. The Administrator may

by rule adopt any amendment to the disclosure document that has been

adopted by the North American Securities Administrators Association,

Inc. or any amendment to the disclosure document prepared pursuant

to the Federal Trade Commission rule entitled Disclosure

Requirements and Prohibitions Concerning Franchising, 16 C.F.R. Part

436 or the Business Opportunity Rule, 16 C.F.R. Part 437 as

applicable.

7. Any offer or sale of a business opportunity for which the

required cash payment made by a purchaser to participate in any

business opportunity does not exceed Seven Hundred Fifty Dollars

($750.00) and the required payment is made for:

a.

the not-for-profit sale of sales demonstration

equipment, material or samples, and/or

b.

product inventory sold to the purchaser at a bona fide

wholesale price.

8. Any offer or sale of a business opportunity which the

Administrator exempts by order or a class of business opportunities

which the Administrator exempts by rule upon the finding that such

exemption would not be contrary to public interest and that

registration would not be necessary or appropriate for the

protection of purchasers.

9. Any business which is operated under a lease or license on

the premises of the lessor or licenser as long as such business is

incidental to the business conducted by the lessor or the licenser

on such premises, including, without limitation, leased departments,

licensed departments and concessions.

Added by Laws 1985, c. 157, § 3, eff. Nov. 1, 1985. Amended by Laws

1991, c. 79, § 3, eff. Sept. 1, 1991; Laws 1992, c. 169, § 2, eff.

Sept. 1, 1992; Laws 1997, c. 279, § 23, eff. July 1, 1997; Laws

2011, c. 327, § 1, eff. Nov. 1, 2011; Laws 2022, c. 77, § 42, eff.

Nov. 1, 2022.