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Kentucky is not a franchise registration state; however, Kentucky is a business opportunity state with an exemption for franchisors. To claim an exemption, Franchisors file an affidavit of business opportunity exemption with the Commonwealth of Kentucky Office of the Attorney General and provide a copy of the franchise disclosure document "FDD".
All franchisors are exempt so long as the franchisor:
Meets the definition of a franchise as defined in the Federal Trade Commission's Regulation on Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures, as set forth in 16 C.F.R. 436 et seq.
This is a one-time filing. After filing the affidavit, franchisors may offer and sale franchises in Kentucky in the same way they would in non-registration states. The affidavit and FDD can be submitted by e-mail. Receipt and acceptance of the exemption filing is acknowledged by letter.