37-25A-2. Exclusions from definition of business opportunity. For the purposes of this chapter, the term, business opportunity, does not include:

(1) Any offer or sale of an on-going business operated by the seller and sold in its entirety;

(2) Any offer or sale of a business opportunity to an on-going business if the seller provides products, equipment, supplies, or services which are substantially similar to the products, equipment, supplies or services sold by the purchaser in connection with the purchaser's on-going business;

(3) Any offer or sale of a business opportunity which has notice filed or is exempt from notice filing pursuant to §§ 37-5B-1 to 37-5B-50, inclusive, or any offer or sale of a business opportunity that is excluded from the definition of business opportunity as set forth in 16 C.F.R. Part 437 as of January 1, 2008;

(4) Any offer or sale of a business opportunity registered pursuant to chapter 47-31B;

(5) Any offer or sale of a business opportunity involving a marketing plan made in conjunction with the licensing of a federally registered trademark or federally registered service mark if the seller had a minimum net worth of one million dollars as determined by the seller's most recent audited financial statement, prepared within thirteen months of the first offer in this state. Net worth may be determined on a consolidated basis if the seller is at least eighty percent 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 excluded under this subdivision;

(6) Any offer or sale of a business opportunity by a personal representative, sheriff, marshal, receiver, trustee in bankruptcy, guardian, or conservator or a judicial offer or sale of a business opportunity.Source: SL 1985, ch 305, § 2; SL 1989, ch 30, § 64; SL 2004, ch 278, § 63; SL 2008, ch 203, § 56.