Florida Business Opportunity Surety Bond

What is a Florida Business Opportunity Bond?

• The Florida Business Opportunity Bond is a surety bond that must be posted by any business opportunity seller that makes any representations set forth in Florida Statutes, Section 559.801(1)(a)3. From this Section that means that a bond must be posted by a seller that guarantees that the purchaser will derive income from the business opportunity which exceeds the price paid or rent charged for the business opportunity or that the seller will refund all or part of the price paid or rent charged for the business opportunity, or will repurchase any of the products, equipment, supplies, or chattels supplied by the seller, if the purchaser is dissatisfied with the business opportunity.
• The surety bond shall not be issued in an amount less than $50,000.
• Per Florida Statutes, a business opportunity is defined as the sale or lease of any products, equipment, supplies, or services, which are sold or leased to a purchaser to enable the purchaser to start a business for which the purchaser is required to pay an initial fee or sum of money which exceeds $500 to the seller, and in which the seller represents:
• that the seller will provide locations or assist the purchaser in finding locations for the use or operation of certain equipment neither owned nor leased by the purchaser or seller;
• that the seller will purchase any or all products made, produced, grown, etc. by the purchaser using the supplies, services, or chattels sold to the purchaser;
• that the seller guarantees that the purchaser will derive income from the business opportunity which exceeds the price paid or rent charged for the business opportunity or that the seller will refund all or part of the price paid or rent charged for the business opportunity, or will repurchase any of the products, equipment, supplies, or chattels supplied by the seller, if the purchaser is dissatisfied with the business opportunity;
• That the seller will provide a sales program or marketing program that will enable the purchaser to derive income from the business opportunity, except that this paragraph does not apply to the sale of a sales program or marketing program made in conjunction with the licensing of a trademark or service mark that is registered under the laws of any state or of the United States if the seller requires use of the trademark or service mark in the sales agreement.

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