H 2036 - NC Franchisee Protection Act

• Enacts the North Carolina Franchisee and Business Opportunity Purchasers Protection Act, expanding existing business opportunity regulations to include franchise sales.

• Requires franchise sellers to provide prospective franchisees with Federal Trade Commission disclosures at least 14 calendar days before signing binding agreements or making payments.

• Mandates business opportunity and franchise sellers to obtain surety bonds of at least $50,000 or establish trust accounts if they guarantee income potential or offer refunds/repurchases to purchasers.

• Establishes filing requirements with the Secretary of State including disclosure documents, bond/trust account documentation, and exemption notices, with a $250 filing fee for business opportunities.

• Aligns state regulations with federal standards by incorporating FTC requirements (16 C.F.R. Parts 436 and 437) for prohibited conduct and required disclosures, effective October 1, 2010.