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Use the actual seller’s current notice route
KRS 367.807(1)(a) links the exemption to the federal franchise definition, federal compliance and written notice. Current 40 KAR 12:410, effective June 30, 2026, directs section 3 notices through the Franchise Exemption Notice portal with authority-to-transact evidence and the offeror’s Franchise Disclosure Document (FDD).
Match the seller in the offer, authority evidence and FDD. A parent’s history does not establish a subsidiary’s authority. Older/redline material and former determination forms are not automatically the current process; registration, renewal and exempt-offeror routes differ.
Fourteen days does not override an immediate statutory duty
Current rule section 4 requires written notification within fourteen days of material changes by stated registered sellers and exempt-notice offerors. KRS 367.805(2) separately says a registered offeror shall notify immediately.
Preserve both instructions and apply the actual route. The regulation is not permission for a registered seller to delay an immediate statutory duty or wait for annual paperwork.
The nonexempt process is separate
For a covered seller without an established exemption, the rule requires approval before covered sales to Kentucky residents, electronic registration/renewal and supporting documents. This route has its own fees; approved registration/renewal lasts one year from written confirmation.
Its cancellation wording remains unreconciled: KRS 367.816’s prescribed notice says thirty business days, while 367.819 says thirty calendar days. Do not turn either into a single resolved deadline or apply the provisions automatically to an established franchise exemption.
Scope
- Exemption eligibility and the nonexempt cancellation conflict are not resolved. A portal record does not establish advertising, relationship or industry-law compliance.
Next step
Establish the qualifying route, use the current seller’s portal documents and apply the appropriate notification rule when facts change.
Sources & review notes
Kentucky Legislative Research Commission
Passage, dates and research notes
primary · Registration number in advertising
It shall be unlawful for the registrant to fail to include the registration number in any advertising.
Applies to the described registrant; 367.807 exemption scope independently assessed.
Kentucky Legislative Research Commission
Passage, dates and research notes
primary · Subsections 1–6
prior to midnight of the thirtieth calendar day after signing a contract
Read alongside 367.816 notice specifying 30 businessdays. Distinct versions/rights need reconciliation by responsible reviewer; no shorter period silently selected.
Kentucky Legislative Research Commission
Passage, dates and research notes
primary · Subsections 1–2 and 4–7
You have thirty (30) business days in which you may cancel this contract for any reason.
Current statute prescribed notice says 30 businessdays; 367.819 separately says 30 calendar days. Conflict preserved; do not auto-calculate a single cancellation deadline.
Kentucky Legislative Research Commission
Passage, dates and research notes
primary · Actual/hypothetical earnings representations
examples based upon the actual earnings made by existing consumer/investors
Non-exempt covered-opportunity earnings rule; exemption applicability must be analysed separately.
Kentucky Legislative Research Commission
Passage, dates and research notes
primary · Subsection 1(a)
has complied with these and filed written notice so stating with the office
Current statute with 2024 amendment history read.
Kentucky Legislative Research Commission
Passage, dates and research notes
primary · Subsections 1–3
The offeror shall immediately notify the office of any material change
Statute requires immediate notification by registered offeror; reconcile with 14-day administrative-rule wording rather than treating the later rule as permission to wait.
Kentucky Legislative Research Commission
Passage, dates and research notes
primary · Current sections 1–5 and history
shall submit a notice of exemption using the Franchise Exemption Notice portal
Current operative text precedes historical/redline material on same page. Read current sections 3–4: electronic exemption notice, authority evidence/FDD and 14-day material-change notification.
Detailed rule records (3)
KRS 367.807(1)(a) links its franchise exemption to the federal definition/compliance and written notice. Current 40 KAR 12:410 effective June 30, 2026 specifies the Franchise Exemption Notice portal, authority-to-transact evidence and a copy of the FDD for this route.
Kentucky Revised Statutes 367.807 Kentucky 40 KAR 12:410: Business opportunity sellers40 KAR 12:410 section 4 requires written material-change notification within 14 days for registered sellers and offerors submitting exemption notices. KRS 367.805(2) separately says the registered offeror shall notify immediately. Do not treat the 14-day rule as permission for a registered seller to postpone an immediate statutory duty.
Kentucky 40 KAR 12:410: Business opportunity sellers Kentucky Revised Statutes 367.805Current 40 KAR 12:410 requires approval before covered sales to Kentucky residents, electronic registration/renewal and specified supporting documents. That non-exempt track is different from the franchise exemption notice and has its own fees, annual period and material-change records.
Kentucky 40 KAR 12:410: Business opportunity sellers Kentucky Revised Statutes 367.805 Kentucky Revised Statutes 367.809 Kentucky Revised Statutes 367.811 Kentucky Revised Statutes 367.816 Kentucky Revised Statutes 367.819Keep this reading in your learning library.
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