Kentucky Administrative Regulations
Title 40 - DEPARTMENT OF LAW
Chapter 2 - Office of Consumer Protection
Section 40 KAR 2:120 - Business opportunity forms
Universal Citation: 40 KY Admin Regs Service 2:120
Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 367.816, 367.990(13)
NECESSITY, FUNCTION, AND CONFORMITY: To provide forms which allow for the review of a prospective seller's offering of business opportunities for conformity with the business opportunity act and for the registration of the seller as such is needed.
Section 1.
(1) A seller of business opportunities shall
register with the Attorney General pursuant to
KRS
367.805 if the seller's proposed activity
meets the definition of a business opportunity set out in
KRS
367.801.
(2) The Attorney General shall make the
business opportunity determination pursuant to subsection (1) of this section
consistent with the following information which shall be provided by the seller
in affidavit form:
(a) The name of the
business opportunity;
(b) The
complete address and telephone number of the principle office;
(c) The address and telephone number of the
principal office in Kentucky;
(d) A
list of trade names, assumed names and all trademarks by which the offeror or
the prospective consumer or investor will be doing business;
(e) A list of all officers and directors and
salesmen of the offeror along with their home addresses, home telephone numbers
and Social Security numbers;
(f) A
description of the product or service to be offered;
(g) A description of any sales commission or
other remuneration to be paid to anyone in connection with offers and sales of
the business opportunities, including a list of persons and positions to
receive commissions;
(h) A list of
states in which the business opportunities have been or are being offered for
sale;
(i) The proposed beginning
date and length of time for offering this business opportunity in
Kentucky;
(j) Information relating
to the definition of a business opportunity found in
KRS
367.801(5);
(k) A statement of whether the registrant or
any of its officers, directors, or sales representatives has been a defendant
or is currently a defendant in any litigation or declares bankruptcy within the
last seven (7) years.
(3)
(a) The
information required pursuant to subsection (2) of this section shall be
supplied by the seller on a "Determination of Registration for Sale of Business
Opportunity Form A-1" (July 1994 edition) which is incorporated by
reference.
(b) Copies of the
"Determination of Registration for Sale of Business Opportunity Form A-1" may
be inspected, copied, or obtained at the Office of Attorney General, Consumer
Protection Division, 1024 Capital Center Drive, Frankfort, Kentucky 40602,
between the hours of 8:30 a.m. and 4:30 p.m. Monday through Friday.
Section 2.
(1) If the Attorney General determines that a
seller of business opportunities must register pursuant to
KRS
367.805, the seller shall complete a
"Business Opportunity Annual Registration Statement Form A-2" which shall
contain the following information in affidavit form:
(2)
(a) The
name of the business opportunity;
(b) The complete address and telephone number
of the principle office;
(c) The
address and telephone number of the principal office in Kentucky;
(d) A list of trade names, assumed names and
all trademarks by which the offeror or the prospective consumer or investor
will be doing business;
(e) A list
of all officers and directors and salesmen of the offeror along with their home
addresses, home telephone numbers and Social Security numbers;
(f) The length of time, the business
opportunity has been offered for sale;
(g) A statement of whether the registrant or
company or any of its officers, directors, or sales representatives have been
involved in or is currently involved in any legal proceeding as set forth in
KRS
367.805(1)(d);
(h) A statement of whether the registrant or
any of its officers, directors, or sales representatives has been a defendant
or is currently a defendant in any litigation or declares bankruptcy within the
last seven (7) years;
(i) A
statement of whether the registrant or the company offering the business
opportunity or its officers, directors, or sales representatives has been a
party to any legal cause of action brought by a consumer/investor of the
business opportunity within the last seven (7) years and, if so, the name and
address of individual bringing such action;
(j) The names and addresses, and telephone
numbers for people buying a business opportunity from offeror during the past
two (2) years;
(k) The names and
addresses of individuals requesting a return of money from the purchase of a
business opportunity during the past three (3) years;
(l) A complete description of the training to
be provided to the consumer-investor;
(m) A complete description of the actual
services the offeror of the business opportunity will provide for the
consumer-investor.
(3)
(a) The information required pursuant to
subsection (1) of this section shall be supplied by the seller on a "Business
Opportunity Annual Registration Statement Form A-2" (September 1994 edition)
which is incorporated by reference.
(b) Copies of the "Business Opportunity
Annual Registration Statement Form A-2" (September 1994 edition) may be
inspected, copied, or obtained at the Office of Attorney General, Consumer
Protection Division, 1024 Capital Center Drive, Frankfort, Kentucky 40602,
between the hours of 8:30 a.m. and 4:30 p.m. Monday through Friday.
STATUTORY AUTHORITY: KRS 15.180, 367.150(4), 367.805(4)
Disclaimer: These regulations may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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