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Test the buyback or income promise separately
RS 51:1821 puts registered-mark wording within the specified sales/marketing-plan branch. Specified device-location help, product buyback and earnings/refund representations have separate conditions. Device placement is not every form of customer-finding or site advice.
For example, a German seller promising to buy back output if the operator is dissatisfied must test that promise separately from its registered mark. The actual payments and other conditions still matter.
When the bond requirement applies
RS 51:1822 requires covered bonds before conducting business, including advertising or soliciting. Subsections A and B require authorized-surety bond face amounts of $50,000 for a covered seller and $25,000 for a covered agent, including the stated independent contractor, broker or employee roles. These are bond amounts, not a quoted premium or application fee; the actual role matters. Subsection G limits the bond duty to opportunities defined in 1821(1)(a), (b) or (c), not every trademark licence.
For those opportunities, subsection H makes the bond continuous. The surety—the company guaranteeing the bond—can terminate through 60 days’ written notice to the specified assistant secretary and the principal, whose obligations the bond guarantees; liability continues during that period and for accrued pre-termination liability discovered later. Subsection E requires a new/additional bond before continuing business. The 60 days is a bond rule, not franchise-contract exit notice.
The agreement must reflect covered oral promises
For covered opportunities, RS 51:1823 addresses documented earnings support, specified ad disclosures, actual seller identification and appointment of the secretary of state for service of process.
Subsection (6) requires the written agreement to include material oral statements, representations and promises made before execution. Subsection (7) prohibits waiver of purchaser legal rights; signing does not erase the earlier sales conversation.
A separate rule applies to real-estate brokerage
RS 37:1465 prohibits the described franchisor from contracting with a Louisiana real-estate broker without appointing a Louisiana-licensed broker as state representative. Property maintenance is not automatically brokerage.
Scope
- Actual coverage, role and bond procedure require application. The stated bond face amounts do not quote an insurance premium; the limited bond and brokerage rules are not complete franchise or operating-law treatment.
Next step
Test the actual promises and seller/agent roles before advertising, then arrange any applicable bond and confirm its filing procedure.
Sources & review notes
Louisiana Legislature
Passage, dates and research notes
primary · Business opportunity definition, subsection 1
This provision shall not apply to the sale or lease of a sales plan or marketing program
Registered-mark language qualifies the described sales/marketing-plan provision, not a universal exclusion from every definitional trigger.
Louisiana Legislature
Passage, dates and research notes
primary · Subsections 1–9
documented data to substantiate the claims of income or earning potential
Read income/advertising, written-contract, trademark permission and appointment-of-agent duties for covered business opportunities.
Louisiana Legislature
Passage, dates and research notes
primary · Real estate franchises
unless the franchisor has appointed a Louisiana licensed real estate broker
Separate professional-sector condition. Does not determine whether a particular service is a regulated real-estate activity.
Louisiana Legislature
Passage, dates and research notes
primary · A, B, E and G: covered sellers/agents and prebusiness filing
including advertising or soliciting
Bond duties limited by subsection Gto business opportunities defined in 51:1821(1)(a),(b),or (c), not every marketing-plan arrangement. Seller and agent amounts differ; bond filing is not an FDD registration conclusion.
Louisiana Legislature
Passage, dates and research notes
primary · 51:1822(A)–(H), especially (E), (G) and (H)
The term of a bond required by this Section shall be continuous.
The full currently served section 51:1822(A)–(H) was read: $50,000 seller and $25,000 agent bond amounts; covered independent-contractor, broker and employee agent roles; filing before business including advertising/solicitation; subsection G scope limited to 1821(1)(a)–(c); continuous term, sixty-day surety notice and accrued-liability conditions. Bond amounts are not premiums or a general service-franchise duty.
Detailed rule records (5)
RS 51:1821(1)(d) contains registered-mark language for the described sales/marketing-plan provision. Other specified vending/display/amusement-device location, buyback and earnings/refund triggers in 1(a)–(c) must be independently examined. Do not describe the mark as a universal business-opportunity exemption.
Louisiana Revised Statutes 51:1821RS 51:1822 requires covered seller/agent bonds filed before business including advertising/soliciting. Seller and agent amounts differ. Subsection Glimits these bond duties to opportunities defined in 51:1821(1)(a),(b) or (c), so do not apply the bond automatically to every marketing-plan model.
Louisiana Revised Statutes 51:1822: surety bonds Louisiana Revised Statutes 51:1821RS 51:1823 addresses documented earnings support, specified advertising disclosures, actual seller identification, written agreement promises and appointment of the secretary of state for service of process. Use actual representations and statutory coverage, not the label on the contract.
Louisiana Revised Statutes 51:1823 Louisiana Revised Statutes 51:1821RS 37:1465 prohibits a franchisor from entering a franchise agreement with a real-estate broker in Louisiana without appointing a Louisiana-licensed real-estate broker as its representative in the state. A brand licence does not displace professional-sector rules.
Louisiana Revised Statutes 37:1465Section 51:1822(H) makes a required bond continuous. A surety may terminate it on 60 days written notice to the assistant secretary and principal; liability continues during that period and for accrued pre-termination liability discovered later. Section (E) requires any new/additional bond before continuing business.
Louisiana RS 51:1822(H): continuous bond and surety termination notice Louisiana Revised Statutes 51:1821Keep this reading in your learning library.
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