2013 Kentucky Revised Statutes
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367.805 Registration of persons engaged in sale of business opportunities -Authority for administrative regulations.
It is unlawful for any person to engage in the sale of business opportunities
unless prior to the offering the offeror has registered with the division and has
furnished a bond pursuant to KRS 367.815(2) and provided all of the following:
(a) All trade names, assumed names, and all trademarks by which the offeror
or the prospective consumer/investor of the business opportunity will be
(b) The names, home addresses, and home telephone numbers of the
persons and company offering the business opportunity, and the
company's directors and chief executive officers, and the names, home
addresses, and home telephone numbers of all representatives selling
business opportunities in Kentucky.
(c) A statement as to the length of time the person and company offering the
business opportunity has conducted a business of the type being offered
both within and without Kentucky.
(d) A statement as to whether the person or company offering the business
opportunity or any of its directors or chief executive officers or sales
representatives operating in Kentucky is currently involved in litigation or
has been held liable in a civil action by final judgment for having engaged
in unfair, false, misleading, or deceptive practices or is currently charged
with or has been convicted of or pleaded nolo contendere to a felony
involving fraud, embezzlement, fraudulent conversion, or misappropriation
of property during the most recent seven (7) year period, or has entered
into any agreed settlements or is currently in any bankruptcy proceeding
or has been declared bankrupt in any judicial proceeding during the most
recent seven (7) year period.
(e) A statement as to whether the person or the company offering the
business opportunity or its officers, directors, or agents making the
offering of the business opportunity has been a party to any legal cause of
action brought by a consumer/investor of the business opportunity within
the last seven (7) year period and, if so, the name and address of such
individual who has brought the legal action.
(f) A statement disclosing the names, addresses, and telephone numbers of
all persons who have been sold a business opportunity by the offeror
within the last two (2) year period.
(g) A statement listing the names and addresses of any consumer/investor
who has requested within the preceding three (3) years that the offeror
return his money.
(h) A current audited financial statement of the offeror.
(i) A specimen of each contract proposed for use in connection with the
(j) A full and detailed description of the actual services that the offeror of the
business opportunity undertakes to perform for the consumer/investor.
(k) If training is promised by the offeror, a complete description of the
training, including length of the training and costs.
The offeror shall immediately notify the division of any material change in
information contained in the application for registration and shall make
appropriate amendment of the disclosure statement.
The division shall collect, from any offeror required to comply with this section,
an initial fee of one hundred fifty dollars ($150), and an annual renewal fee of
fifty dollars ($50), and an update fee of twenty-five dollars ($25) for the
administration and enforcement of KRS 367.801 to 367.819. Funds so
collected shall be credited to a trust or agency account for the administrative
purpose of the Attorney General's office, Division of Consumer Protection.
The Attorney General may promulgate administrative regulations as needed to
provide for: a hearing, to be conducted in accordance with KRS Chapter 13B,
for any business opportunity which the Attorney General initially determines
should not be registered or should have registration revoked or suspended; for
the establishment of specific standards for the form and content of the
disclosure document; and for registration procedures including fee schedules.
Effective:July 15, 1996
History: Amended 1996 Ky. Acts ch. 318, sec. 350, effective July 15, 1996. -Amended 1994 Ky. Acts ch. 165, sec. 26, effective July 15, 1994; and ch. 329,
sec. 2, effective July 15, 1994. -- Created 1978 Ky. Acts ch. 315, sec. 3,
effective June 17, 1978.
Legislative Research Commission Note (7/15/94). This section was amended by
1994 Ky. Acts chs. 165 and 329 which are in conflict. Under KRS 446.250, Acts
ch. 329, which was last enacted by the General Assembly, prevails.
2012-2014 Budget Reference. See State/Executive Branch Budget, 2012 Ky. Acts
ch. 144, Pt. I, A, 19, (5) at 1097.
CHAPTER 367 - CONSUMER PROTECTION
367.805 Registration of persons engaged in sale of business opportunities -- Authority for administrative regulations.
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