409.1003. Practices prohibited--penalty. - Missouri Statutes

Practices prohibited--penalty.

409.1003. 1. A business opportunity seller shall not:

(1) Misrepresent, by failure to disclose or otherwise, the knownrequired total investment for such business opportunity;

(2) Misrepresent or fail to disclose efforts to sell or establishmore franchises or distributorships than it is reasonable to expect themarket or market area for the particular business opportunity to sustain;

(3) Misrepresent the quantity or the quality of the products to besold or distributed through the business opportunity;

(4) Misrepresent the training and management assistance available tothe business opportunity purchaser;

(5) Misrepresent the amount of profits, net or gross, which thefranchisee can expect from the operation of the business opportunity;

(6) Misrepresent, by failure to disclose or otherwise, thetermination, transfer or renewal provision of a business opportunityagreement;

(7) Falsely claim or imply that a primary marketer or trademark ofproducts or services sponsors or participates directly or indirectly in thebusiness opportunity;

(8) Assign a so-called exclusive territory encompassing the same areato more than one business opportunity purchaser;

(9) Provide machines or display of a brand or kind substantiallydifferent from and inferior to those promised by the business opportunityseller;

(10) Fail to provide the purchaser a written contract;

(11) Misrepresent the seller's ability or the ability of a person orentity providing services as defined in subdivision (1) of subsection 1 ofsection 409.1000 to provide locations or assist the purchaser in findinglocations expected to have a positive impact on the success of the businessopportunity;

(12) Misrepresent a material fact or create a false or misleadingimpression in the sale of a business opportunity.

2. Any person who violates the provisions of this section is guiltyof a class A misdemeanor.

(L. 2000 S.B. 896 § 407.2015)