                                 CODE OF VIRGINIA

WRITTEN DISCLOSURE STATEMENT REQUIRED (§ 59.1-264)

A. At least forty-eight hours prior to the time the purchaser signs a business
opportunity contract, or at least forty-eight hours prior to the receipt of any
consideration therefor by the seller, whichever occurs first, the seller shall
provide the prospective purchaser with a written document, the cover sheet of
which is entitled in at least ten-point boldface capital letters
&#8220;DISCLOSURES REQUIRED BY VIRGINIA LAW.&#8221; Under this title shall
appear the following statement in at least ten-point type: &#8220;The
Commonwealth of Virginia has not reviewed and does not approve, recommend,
endorse or sponsor any business opportunity. The information contained in this
disclosure has not been verified by the Commonwealth. If you have any questions
about this investment, see an attorney before you sign a contract or
agreement.&#8221; Nothing except the title and required statement shall appear
on the cover sheet. The disclosure document shall also contain the following:

   1. The name of the seller; whether the seller is doing business as an
   individual, partnership, or corporation; the names under which the seller has
   done, is doing or intends to do business in Virginia; and the name of any
   parent or affiliated company which is legally obligated to engage in business
   transactions with purchasers.

   2. The names, addresses and titles of the seller&#8217;s officers, directors,
   trustees, general partners, general managers, principal executives, and any
   other person charged with responsibility for the seller&#8217;s business
   activities relating to the sale of business opportunities.

   3. The length of time the seller has:
   				a. Sold business opportunities;
   				b. Sold business opportunities involving the product, products, equipment,
   supplies, or services currently being offered to the purchaser.

   4. A full and detailed description of the actual services that the business
   opportunity seller agrees to perform for the purchaser.

   5. A copy of a financial statement of the seller, which shall not be older
   than thirteen months, which shall be updated to reflect any material changes
   in the seller&#8217;s financial condition.

   6. The following statement:
   				&#8220;If the seller fails to deliver the product, products, equipment or
   supplies necessary to begin substantial operation of the business within
   forty-five days of the delivery date stated in your contract, you may notify
   the seller in writing of your termination of the contract.&#8221;

B. If training of any type is promised by the seller, the disclosure statement
shall set forth a complete description of the training and the length of the
training.

C. If the seller promises services to be performed in connection with the
placement of the equipment, product, products, or supplies at any location or at
various locations, the disclosure statement must set forth the full nature of
those services as well as the nature of the agreements to be made with the
owners or managers of the location or locations where the purchaser&#8217;s
equipment, product, products or supplies will be placed.

D. If the business opportunity seller is required to secure a bond or establish
a trust deposit pursuant to § 59.1-265, the document shall state in at least
ten-point type, either:

   1. &#8220;As required by Virginia law, the seller has secured a bond issued by
   				&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#x2026;
   (name and address of surety company), a surety company authorized to do
   business in this State. Before signing a contract to purchase this business
   opportunity, you should check with the surety company to determine the
   bond&#8217;s current status,&#8221; or

   2. &#8220;As required by Virginia law, the seller has established a trust
   				account
   with&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#82
   30;.&#x2026; (name and address of bank or savings institution). Before signing
   a contract to purchase this business opportunity, you should check with the
   bank or savings institution to determine the current status of the trust
   account.&#8221;

E. If the seller makes any statement concerning sales or earnings or any range
of sales or earnings that the purchaser may reasonably expect to be made through
this business opportunity, the document shall disclose:

   1. The total number of purchasers of business opportunities within the United
   States involving the product, products, equipment, supplies or services being
   offered who, to the seller&#8217;s knowledge, have actually received earnings
   in the amount or range specified, within three years prior to the date of the
   disclosure statement, and

   2. The total number of purchasers of business opportunities within the United
   States involving the product, products, equipment, supplies, or services being
   offered within three years prior to the date of the disclosure statement.

HISTORY: 1979, c. 523.