Business opportunity laws by state: what 25 statutes require of vending sellers

Which states have business opportunity laws that reach vending sellers?

Twenty-five states have business opportunity statutes that Fine Print verified from the state’s own code or, for Georgia, the Attorney General’s copy: Alaska, California, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Nebraska, New Hampshire, North Carolina, Ohio, Oklahoma, South Carolina, South Dakota, Texas, Utah, Virginia and Washington. A state missing here is one we did not verify, not one shown to have no law.

“Files first” means a registration or disclosure filing before selling; Georgia and Iowa want only an agent to accept legal papers, Louisiana a bond and an agent, Michigan a short notice. Disclosure times run back from the earlier of signing or paying.

What does each state’s law require?

Each state’s law sets its own filing office, payment floor, security rule and exemptions, and the list below gives them for all 25, with the statute linked. A filing is usually a copy of the disclosure document, a fee and a consent naming a state official to accept legal papers for the seller.

Fees shown are statutory; Alaska, Illinois, Texas and Utah leave the fee to the agency. Georgia’s official code site would not open on the check date, so Georgia was read from the Attorney General’s copy and from FindLaw, a legal publisher; the two agree.

• Alaska (AS 45.66): register with the Department of Law 30 days before the first offer; $75,000 bond. Covers payments of $250 or more when the seller “or a person recommended by the seller” will provide or help find locations. FTC-rule franchises and inventory at a bona fide wholesale price are exempt.
• California (Civ. Code §§1812.200–1812.221), a seller assisted marketing plan law: file with the Attorney General 30 days before advertising ($100 a year). Covers a seller of 5 or more plans whose deal costs over $500, under $50,000 up front, with an earnings, market or buy-back claim; a location promise alone is not a trigger. Bond of $50,000 to $300,000 for buy-back claims.
• Connecticut (Gen. Stat. §§36b-60 to 36b-80): register with the Banking Commissioner ($400). Covers a location promise unless the first year’s payments total $200 or less with no income guarantee. $50,000 bond or trust account for income guarantees or refunds.
• Florida (Stat. §§559.80–559.815): no seller filing. Covers fees over $500 when the seller, or an entity it is affiliated with or refers you to, will find locations, including by supplying names of locator companies. $50,000 bond for guarantees or refunds.
• Georgia (O.C.G.A. §§10-1-410 to 10-1-417, Attorney General’s copy; also on FindLaw): appoint the Secretary of State to accept legal papers ($10). Covers a location promise at any price, locator-company referrals included. $75,000 bond for refund or buy-back promises on deals over $500.
• Illinois (815 ILCS 602): register with the Secretary of State. Covers a location promise by the seller or “a person recommended by the seller”; sales of $500 or less, sellers worth $1 million and buyers worth $250,000 are exempt from registration and its disclosure. $25,000 net worth, or a bond, for income or refund promises.
• Indiana (IC 24-5-8): file the disclosure and a bond with the Attorney General’s Consumer Protection Division ($50); the registration number goes in ads. Covers deals over $500, under $50,000 up front, with an earnings, market or buy-back claim; a location promise is not on the list. Bond of 20 times the initial payment, at least $75,000, unless the seller is worth $5 million.
• Iowa (Code ch. 551A): file a consent to service with the Secretary of State. Covers more than $500 owed through 6 months of operation when the seller or “a person recommended by the seller” will find locations. No bond; franchises that deliver a franchise disclosure document are exempt.
• Kentucky (KRS 367.801–367.819): register with the Attorney General’s Office of Consumer Protection ($150), post a bond of at least $75,000 and print the registration number in ads. Covers $500 or more plus an earnings, market, location or buy-back claim. The registration file must be shown to you before any solicitation.
• Louisiana (R.S. 51:1821–1824): file a $50,000 seller bond, plus $25,000 per sales agent, with the Department of Justice before advertising, and appoint the Secretary of State to accept legal papers. Covers more than $300 owed through 180 days after starting when the seller, or an entity it refers you to, will find locations.
• Maine (32 M.R.S. §§4691–4700-B): register with the Securities Administrator ($25). Covers more than $250 in any 6 months when the seller or “an affiliated person” will find locations. $30,000 bond or escrow unless the seller keeps a permanent place of business in Maine.
• Maryland (Bus. Reg. §§14-101 to 14-129): register with the Securities Commissioner in the Attorney General’s office ($250). Covers $300 or more through 6 months after opening when the seller, or a person it recommends or refers, will help find locations. $50,000 bond for income guarantees or refunds.
• Michigan (MCL 445.902 and 445.903b): before the first sale over $500, counting payments to 6 months after it, file a notice with the Attorney General giving the seller’s name, address and, if out of state, a consent to service. The definition covers a seller who will find vending locations; a buyer who loses money recovers at least $250.
• Minnesota (Stat. ch. 80C): the franchise law treats a location promise by the seller or an affiliate as a franchise, so the seller registers with the Commissioner of Commerce ($400). Fees under $100 a year, and goods at a bona fide wholesale price, do not count. The commissioner can order fees escrowed; damages or rescission suits run 3 years.
• Nebraska (Rev. Stat. §§59-1701 to 59-1762), the Seller-Assisted Marketing Plan Act: file the disclosure with the Department of Banking and Finance ($100). Covers, at any price, a seller of 5 or more plans in 24 months who promises locations, vending routes, accounts or income. Bond of $50,000 to $300,000 for buy-back or secured claims.
• New Hampshire (RSA ch. 358-E): register with the Attorney General ($50). Covers any fee when the seller supplies the goods or machines and promises locations on someone else’s property. The Attorney General can require fees held in escrow or a bond.
• North Carolina (Gen. Stat. §§66-94 to 66-100): file with the Secretary of State ($250) before advertising. Covers a location promise at any price. $50,000 bond for guarantees or refunds. Since 2023 a federal franchise disclosure document can serve as the disclosure.
• Ohio (Rev. Code ch. 1334): no filing. Covers initial payments over $500 and under $100,000 through 6 months of operation, not counting goods at bona fide wholesale prices, when you will be given locations or help finding them. $50,000 bond, never below $10,000, for buy-back or secured claims.
• Oklahoma (71 O.S. §§801–829): register with the Department of Securities ($250). Covers more than $500 owed within a year of starting when the seller or “a person recommended by the seller” will find locations. $50,000 net worth for income or refund promises; sellers worth $1 million are exempt from registration.
• South Carolina (Code §§39-57-10 to 39-57-80): file with the Secretary of State ($100, renewed every 2 years) and print “S.S. Reg. No.” in ads. Covers fees over $250 with a location promise. $50,000 bond for guarantees or refunds.
• South Dakota (SDCL ch. 37-25A): register with the Division of Insurance ($100). Covers $500 or more through 6 months after opening when the seller, a term that includes “a person recommended by the seller,” will find locations. $25,000 net worth, or a bond, for income or refund promises.
• Texas (Bus. & Com. Code ch. 51): register with the Secretary of State. Covers deals over $500 only when a profit claim comes with a location, marketing or buy-back promise. $25,000 bond, trust account or letter of credit before any profit claim.
• Utah (Code §§13-15-102 to 13-15-303): obtain a proof-of-disclosure receipt from the Division of Consumer Protection. Covers $500 or more through 6 months when the seller will provide or help find a location, or claims income. No bond; a May 2026 amendment lets the division deny or revoke a receipt.
• Virginia (Code §§59.1-262 to 59.1-269): no filing. Covers more than $500 with a location promise. $50,000 bond or escrow before the seller makes any of the defining promises.
• Washington (RCW 19.110): register with the Department of Financial Institutions ($200) and print the registration number in ads. Covers a location promise at any price. $50,000 bond or trust account if income is guaranteed, and no money may change hands before you sign.

How do state laws treat locators and location promises?

Twenty-three of the 25 statutes treat a promise to provide locations, or to help find them, for vending machines on premises the buyer does not own as one of the triggers. Three go further and name locator companies: Florida, Georgia and Kentucky say that supplying names of locator companies, or collecting a fee for one, counts as helping a buyer find locations.

Others reach the same result through referrals. Alaska, Illinois, Iowa, Maryland, Nebraska, Oklahoma and South Dakota cover promises made by “a person recommended” by the seller, Florida and Louisiana cover entities the seller refers you to, and Maine covers “an affiliated person.” Minnesota counts a referral to an affiliated location resource, one paid a referral fee included, but not a written list of unaffiliated ones (§80C.01, subd. 19).

Five statutes are built differently, which changes the vending analysis:

• California and Indiana are triggered by an earnings, market or buy-back claim; a location promise alone is not on either list (IC 24-5-8-1).
• Texas needs a profit claim and a location, marketing or buy-back promise together (§51.003).
• New Hampshire covers grantors that supply the goods, inventory or machines and also promise locations (RSA 358-E:1).
• Michigan defines a location promise as a business opportunity but asks the seller only for a notice before the first sale over $500 (MCL 445.903b).

Two states write a vending-specific ban into their prohibited acts: Florida and Iowa forbid a seller to provide vending locations for which the property owner or lessee has not given written authorization (Fla. Stat. §559.809; Iowa Code §551A.9). Both also bar misrepresenting a locator’s ability to find locations that help the business succeed.

When does a payment trigger a state business opportunity law?

A payment triggers most state laws once it passes a stated floor, often counted from before you start until 6 months after: $250 in Alaska, Maine and South Carolina, $300 in Maryland and Louisiana, and $500 in thirteen others. Five statutes set no dollar floor for a location promise, Minnesota counts fees of $100 a year, and Connecticut exempts deals of $200 or less without an income guarantee.

How the payment is counted matters too: a dozen states count what you owe through about 6 months of operation, Oklahoma and Connecticut a full year, and Maine any 6-month stretch. Connecticut leaves out payments calculated as a share of the business’s revenue (§36b-65).

Exemptions matter to operators who already run machines. Iowa, Illinois, Oklahoma and South Dakota exclude a sale to an existing business of goods or services substantially similar to what it already sells, and Alaska a sale of goods the business will resell. Whether buying placements for more machines fits that wording is a fact question; the FTC rule explainer covers the federal version.

Large sellers can be exempt too, from registration at least. The net-worth lines start at $1 million in Illinois, Oklahoma and South Dakota, then $5 million in Indiana and, on conditions, North Carolina. They rise to $10 million in South Carolina and, with further tests, California; $15 million in Ohio and Georgia, with a track record or public listing; and $25 million in Texas. An empty registration search can therefore mean an exempt seller rather than an unlawful one.

What security and cancellation rights do buyers get?

State security and exit rules split into two groups. Seven states require a bond or similar security, in effect, from every seller they cover: Alaska, Indiana, Kentucky, Louisiana, Maine, Texas and Virginia. Most of the rest require one only when the seller guarantees income, promises a refund or claims the money is secured, and nine states let a buyer cancel for any reason after signing.

Virginia and Texas reach every covered seller by drafting: Virginia’s $50,000 must be in place before any of its defining promises, a location promise included (§59.1-265), and Texas’s $25,000 before any profit claim, which its definition requires.

Several states also limit how much money a seller can hold before it delivers. Georgia lets a seller collect no more than 15% of the price until 60 days after you start operating (O.C.G.A. §10-1-412). Alaska, California, Indiana, Kentucky, Nebraska and Ohio cap the payment before delivery at 20% unless the excess is escrowed. Those rules were written for sellers who deliver goods, so how each applies to a location-search fee is a question for counsel; see when a locator deposit is refundable.

The cancel-for-any-reason windows are 30 days in Alaska, Indiana and Kentucky, 7 business days in Washington, 5 in Ohio (where Saturdays count) and 3 in California, Iowa, Maine and Nebraska. Alaska and Kentucky also let a buyer cancel at any time when promised locations are not provided (AS 45.66.130; KRS 367.819). In Kentucky, section 367.819 gives 30 calendar days, while the rights statement that section 367.816 requires in the contract says 30 business days.

Most statutes also let a buyer void the contract and recover what was paid, usually within 1 year, when the seller misled the buyer or skipped a required step; Connecticut allows 2 years, Ohio and Illinois 3, and New Hampshire 90 days from learning of a filing or disclosure failure. Some set a minimum recovery: the greater of actual damages or $1,500 in Kentucky for false statements, $2,000 in Utah or $250 in Michigan, and in Ohio up to three times actual damages or $10,000, whichever is greater.

Diary these clocks on the day you sign; how to get a refund from a vending locator sets out the order in which to use them alongside card disputes and complaints.

How do state laws fit with the FTC Business Opportunity Rule?

State laws sit on top of the federal rule rather than replacing it. The FTC disclaims any intent to override a state law that protects buyers at least as well, naming registration of disclosure documents as an example, so long as the state’s disclosures arrive in their own document (16 CFR 437.9(b)). A covered seller can owe both a federal form and a state one.

States handle the overlap differently. Ohio exempts deals that comply in all material respects with the FTC’s Business Opportunity or Franchise Rule from most of its chapter, though not from its bond rule for buy-back and secured-investment claims (R.C. §1334.13). Texas accepts a similar federal document that holds everything Texas requires, and Illinois, Iowa, Maryland, North Carolina, Oklahoma and South Dakota accept franchise-style or federal disclosure documents in some cases.

The federal timing is one week: a covered seller must deliver the one-page form 7 calendar days before you sign or pay. In states with a 10-business-day or 14-day rule, the state deadline is the longer one and controls the earliest date you should be asked for money.

How do you check a seller against your state’s law?

To check a seller, start with the state where you live or will place the machine, since many statutes apply when the buyer lives in the state or the business will operate there. Ask the seller in writing whether it has registered or filed under that state’s law, get the registration number, and confirm it with the agency named in the state-by-state list.

Treat a vague answer as an answer, and as one of the red flags to walk away from. A registered seller can usually say so in one line, so add the question to your questions to ask a vending locator. The clauses that should carry these promises into your contract are laid out in the clause-by-clause contract guide.

Business opportunity registration is separate from the permits a machine needs once it is placed, and the two are easy to conflate. PinPoint Vending’s rundown of vending licenses and permits counts four stacked on top of an EIN: a city or county business license, a state sales-tax permit, a per-machine decal running from a few dollars to about $50, and a health permit it puts at $50 to $300 in many counties. It gives Maryland at $2.50 per machine a year and a Texas $60 decal that applies to claw and prize machines rather than snack and drink ones.