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Ohio Revised Code

Ohio Rev. Code § 1334.01 (2026)

Business opportunity plan definitions

✓ current as of May 2026
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Effective:
September 28, 2012
Latest Legislation:
Senate Bill 196 - 129th General Assembly
PDF:
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As used in sections 1334.01 to 1334.15 of the Revised Code:

(A) "Seller" means a person who sells or leases a business opportunity plan.

(B) "Purchaser" means a person to whom a business opportunity plan is sold or leased.

(C) "Broker" means a person, other than a seller, who sells or leases, offers for sale or lease, or arranges for the sale or lease of a business opportunity plan for a commission, fee, or anything of value.

(D) "Business opportunity plan" means an agreement in which a purchaser obtains the right to offer, sell, or distribute goods or services under all of the following conditions:

(1) The goods or services are supplied by the seller, a third person with whom the purchaser is required or advised to do business by the seller, or an affiliated person.

(2) The purchaser is required to make an initial payment greater than five hundred dollars, but less than one hundred thousand dollars, to the seller or an affiliated person to begin or maintain the business opportunity plan.

(3) The seller makes any of the following representations:

(a) That the purchaser will be provided with retail outlets or accounts, or assistance in establishing retail outlets or accounts, for the sale or distribution of the goods or services;

(b) That the purchaser will be provided locations, or assistance in finding locations, for vending machines, electronic games, rack displays, or any other equipment or display for use in the sale or distribution of the goods or services;

(c) That the purchaser can earn a profit in excess of the initial payment;

(d) That there is a market for the goods or services;

(e) That there is a buy-back arrangement.

(E) "Person" means an individual, corporation, business trust, estate, trust, limited or general partnership, association, or other business entity.

(F) "Affiliated person" means a person who is described by any of the following:

(1) Controls, is controlled by, or is under common control with, a seller;

(2) Owns, controls, or holds, with the power to vote, ten per cent or more of the outstanding voting securities of a seller;

(3) Has, in common with the seller, one or more partners, officers, directors, trustees, branch managers, or other persons who perform management or policy functions.

(G) "Initial payment" means the total amount a purchaser is obligated to pay prior to or during the first six months after commencing operation of the business opportunity plan. If an agreement sets forth a specific total sale price for purchase of a business opportunity plan, which is to be paid in one or more installments, "initial payment" means the entire total sale price. "Initial payment" also includes the full amount of any promissory note given by a purchaser, or an affiliated person, to the seller, or an affiliated person, prior to or during the first six months after commencing operation of the business opportunity plan. "Initial payment" does not include purchases at bona fide wholesale prices of reasonable quantities of goods or services for resale or lease. "Initial payment" also does not include any payment for sales demonstration equipment and materials, so long as all of the following apply:

(1) The seller or an affiliated person furnishes the sales demonstration equipment and materials to the purchaser at cost, and does not realize any profit, commission, fee, rebate, or other benefit from furnishing the equipment and materials.

(2) The total price of the sales demonstration equipment and materials is less than five hundred dollars.

(3) The sales demonstration equipment and materials are for use in making sales, and are not for resale.

(H) "Business day" means any calendar day that is not Sunday or a legal holiday. "Legal holiday" has the same meaning as in section 1.14 of the Revised Code.

(I) "Buy-back arrangement" means that the seller, an affiliated person, or other person will do either of the following:

(1) Refund the initial payment or return the promissory note upon termination or nonrenewal of the business opportunity plan;

(2) Purchase any finished goods that the purchaser makes, produces, fabricates, grows, or breeds utilizing the goods or services supplied by the seller or other person enumerated in division (D)(1) of this section.
Notes of Decisions
Cited in 23 cases (2 in the last 5 years), 1983–2025 · leading case: Yo-Can, Inc. v. Yogurt Exch., Inc., 778 N.E.2d 80 (Ohio Ct. App. 2002).
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Yo-Can, Inc. v. Yogurt Exch., Inc., 778 N.E.2d 80 (Ohio Ct. App. 2002). · cites it 8× “R.C. 1334.01 through 1334.99. This Act is the subject of the second assignment of error and therefore will be analyzed infra.”
Saydell v. Geppetto's Pizza & Ribs Franchise Sys., Inc., 652 N.E.2d 218 (Ohio Ct. App. 1994). · cites it 4× “R.C. 1334.01 et seq. comprise the Ohio Business Opportunity Plans statutes.”
Margroff v. Cornwell Quality Tools, Inc., 610 N.E.2d 1006 (Ohio Ct. App. 1991). · cites it 4× “15 provides: “The remedies of sections 1334.01 to 1334.15 of the Revised Code are in addition to remedies otherwise available for the same conduct under federal, state, or local law.”
In Re Energy Sys. Equip. Leasing Sec. Litig., 642 F. Supp. 718 (E.D.N.Y 1986). · cites it 2× “” The statute defines a “seller” as “a person who sells or leases a business opportunity plan,” Ohio Rev.Code Ann. § 1334.01(A), and declares a “broker” to be “a person, other than a seller, who sells or leases, offers for sale or lease, or arranges for the sale or lease of a…”
Am. Nursing Care of Toledo, Inc. v. Leisure, 609 F. Supp. 419 (N.D. Ohio 1984). · cites it 2× “O.R.C. § 1334.01(D)(1). Toledo was in the business of providing nursing services and these services were not supplied to it by NSI or ANC.”
Tele-Save Merchandising Co. v. Consumers Distrib. Co., Ltd., 814 F.2d 1120 (6th Cir. 1987). “Because I believe that the Ohio Business Opportunity Purchasers Protection Act (“the Act”), Ohio Rev. Code § 1334.01 et seq., is applicable in the present case, I must respectfully dissent.”
6100 Cleveland, Inc. v. Staff Builders Int'l, Inc., 127 F. Supp. 2d 877 (N.D. Ohio 1999). · cites it 8× “Defendants contend that plaintiffs’ complaint is deficient in pleading a RICO claim for three reasons: the complaint fails to allege (1) any predicate act of “racketeering activity”; (2) a “pattern of racketeering activity” and (3) a violation of any of the four RICO subsections.”
Burger Dynasty, Inc. v. Bar 145 Franchising, L.L.C., 2019 Ohio 4006 (Ohio Ct. App. 2019). · cites it 12× ““Material” is not defined in R.C. 1334.01 et seq., but the court notes that the previous version of R.”
Firestone Fin. Corp. v. Syal, 327 F. Supp. 2d 809 (N.D. Ohio 2004). · cites it 2× “, Bob Grant, and John Doe Agent for fraud, misrepresentation, and violations of the Business Opportunity Plans Act, O.R.C. § 1334.01 et seq., seeking actual and compensatory damages in excess of $10,000, $100,000 in punitive damages, $10,000 in statutory damages, rescission of…”
Ervin v. Am. Funding Corp., 625 N.E.2d 635 (Ohio Ct. App. 1993). “In January 1992, appellee filed a complaint for rescission, damages and other relief, alleging that the agreement violated R.C. 1334.01 et seq., the Ohio Business Opportunity Purchaser’s Protection Act.”
ry/eh, Inc. v. Arthur Treacher's, Inc., 685 N.E.2d 316 (Ohio Ct. App. 1996). · cites it 2× “09 provides: “(A) For a violation of sections 1334.01 to 1334.15 of the Revised Code, a purchaser has a cause of action and may in an individual action, rescind the transaction and recover, if he is found to have been damaged, three times the amount of actual damages or ten…”
Eve v. Rutledge, 597 N.E.2d 194 (Ohio Ct. App. 1991). · cites it 5× “Appellants’ answer and counterclaim alleged that (1) appellee breached the underlying contract, (2) the note and mortgage were the product of misrepresentations by appellee constituting fraud in the inducement, and (3) appellee did not comply with the provisions of the Business…”
Show all 23 citing cases →
— Ohio Rev. Code § 1334.01(A) — 4 cases
Yo-Can, Inc. v. Yogurt Exch., Inc., 778 N.E.2d 80 (Ohio Ct. App. 2002). “R.C. 1334.01 through 1334.99. This Act is the subject of the second assignment of error and therefore will be analyzed infra.”
In Re Energy Sys. Equip. Leasing Sec. Litig., 642 F. Supp. 718 (E.D.N.Y 1986). “” The statute defines a “seller” as “a person who sells or leases a business opportunity plan,” Ohio Rev.Code Ann. § 1334.01(A), and declares a “broker” to be “a person, other than a seller, who sells or leases, offers for sale or lease, or arranges for the sale or lease of a…”
Burger Dynasty, Inc. v. Bar 145 Franchising, L.L.C., 2019 Ohio 4006 (Ohio Ct. App. 2019). ““Material” is not defined in R.C. 1334.01 et seq., but the court notes that the previous version of R.”
Zeller v. Farmers Grp., Inc., 2019 Ohio 3297 (Ohio Ct. App. 2019).
— Ohio Rev. Code § 1334.01(B) — 1 case
Burger Dynasty, Inc. v. Bar 145 Franchising, L.L.C., 2019 Ohio 4006 (Ohio Ct. App. 2019). ““Material” is not defined in R.C. 1334.01 et seq., but the court notes that the previous version of R.”
— Ohio Rev. Code § 1334.01(C) — 3 cases
Yo-Can, Inc. v. Yogurt Exch., Inc., 778 N.E.2d 80 (Ohio Ct. App. 2002). “R.C. 1334.01 through 1334.99. This Act is the subject of the second assignment of error and therefore will be analyzed infra.”
In Re Energy Sys. Equip. Leasing Sec. Litig., 642 F. Supp. 718 (E.D.N.Y 1986). “” The statute defines a “seller” as “a person who sells or leases a business opportunity plan,” Ohio Rev.Code Ann. § 1334.01(A), and declares a “broker” to be “a person, other than a seller, who sells or leases, offers for sale or lease, or arranges for the sale or lease of a…”
Burger Dynasty, Inc. v. Bar 145 Franchising, L.L.C., 2019 Ohio 4006 (Ohio Ct. App. 2019). ““Material” is not defined in R.C. 1334.01 et seq., but the court notes that the previous version of R.”
— Ohio Rev. Code § 1334.01(D) — 7 cases
Saydell v. Geppetto's Pizza & Ribs Franchise Sys., Inc., 652 N.E.2d 218 (Ohio Ct. App. 1994). “R.C. 1334.01 et seq. comprise the Ohio Business Opportunity Plans statutes.”
Margroff v. Cornwell Quality Tools, Inc., 610 N.E.2d 1006 (Ohio Ct. App. 1991). “15 provides: “The remedies of sections 1334.01 to 1334.15 of the Revised Code are in addition to remedies otherwise available for the same conduct under federal, state, or local law.”
Eve v. Rutledge, 597 N.E.2d 194 (Ohio Ct. App. 1991). “Appellants’ answer and counterclaim alleged that (1) appellee breached the underlying contract, (2) the note and mortgage were the product of misrepresentations by appellee constituting fraud in the inducement, and (3) appellee did not comply with the provisions of the Business…”
Jori, L.L.C. v. B2B Internatl., L.L.C., 2018 Ohio 1216 (Ohio Ct. App. 2018).
Goodwin v. Am. Marine Express, Inc. (N.D. Ohio 2019).
— Ohio Rev. Code § 1334.01(D)(1) — 6 cases
Yo-Can, Inc. v. Yogurt Exch., Inc., 778 N.E.2d 80 (Ohio Ct. App. 2002). “R.C. 1334.01 through 1334.99. This Act is the subject of the second assignment of error and therefore will be analyzed infra.”
Am. Nursing Care of Toledo, Inc. v. Leisure, 609 F. Supp. 419 (N.D. Ohio 1984). “O.R.C. § 1334.01(D)(1). Toledo was in the business of providing nursing services and these services were not supplied to it by NSI or ANC.”
Eve v. Rutledge, 597 N.E.2d 194 (Ohio Ct. App. 1991). “Appellants’ answer and counterclaim alleged that (1) appellee breached the underlying contract, (2) the note and mortgage were the product of misrepresentations by appellee constituting fraud in the inducement, and (3) appellee did not comply with the provisions of the Business…”
Goodwin v. Am. Marine Express, Inc. (N.D. Ohio 2019).
Zeller v. Farmers Grp., Inc., 2019 Ohio 3297 (Ohio Ct. App. 2019).
— Ohio Rev. Code § 1334.01(D)(2) — 1 case
Goodwin v. Am. Marine Express, Inc. (N.D. Ohio 2019).
— Ohio Rev. Code § 1334.01(D)(3)(a) — 1 case
Jori, L.L.C. v. B2B Internatl., L.L.C., 2018 Ohio 1216 (Ohio Ct. App. 2018).
— Ohio Rev. Code § 1334.01(D)(3)(c) — 2 cases
Goodwin v. Am. Marine Express, Inc. (N.D. Ohio 2019).
Jori, L.L.C. v. B2B Internatl., L.L.C., 2018 Ohio 1216 (Ohio Ct. App. 2018).
— Ohio Rev. Code § 1334.01(E) — 2 cases
Yo-Can, Inc. v. Yogurt Exch., Inc., 778 N.E.2d 80 (Ohio Ct. App. 2002). “R.C. 1334.01 through 1334.99. This Act is the subject of the second assignment of error and therefore will be analyzed infra.”
Burger Dynasty, Inc. v. Bar 145 Franchising, L.L.C., 2019 Ohio 4006 (Ohio Ct. App. 2019). ““Material” is not defined in R.C. 1334.01 et seq., but the court notes that the previous version of R.”
— Ohio Rev. Code § 1334.01(F) — 1 case
Yo-Can, Inc. v. Yogurt Exch., Inc., 778 N.E.2d 80 (Ohio Ct. App. 2002). “R.C. 1334.01 through 1334.99. This Act is the subject of the second assignment of error and therefore will be analyzed infra.”
— Ohio Rev. Code § 1334.01(G) — 3 cases
Margroff v. Cornwell Quality Tools, Inc., 610 N.E.2d 1006 (Ohio Ct. App. 1991). “15 provides: “The remedies of sections 1334.01 to 1334.15 of the Revised Code are in addition to remedies otherwise available for the same conduct under federal, state, or local law.”
Goodwin v. Am. Marine Express, Inc. (N.D. Ohio 2019).
Lowery v. Iftiu (Bankr. N.D. Ohio 2019).
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