KRS § 367.805 — KY Code / Title XXIX / Chapter 367 / Section 367.805
367.805 Registration of persons engaged in sale of business opportunities -- Administrative regulations
Status: in_force

367.805 Registration of persons engaged in sale of business opportunities --

Administrative regulations.

(1) 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 office 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 doing

business.

(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 business

opportunity.

(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.

(2) The offeror shall immediately notify the office of any material change in

information contained in the application for registration and shall make appropriate

amendment of the disclosure statement.

(3) 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 of Consumer Protection.

(4) 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.