Kentucky Franchise Registration
Kentucky has various advantages that make it an excellent business destination in the United States of America. From logistical advantages to low utility costs, the state ranks among the favorite areas to do business. With its proximity to two-thirds of the states, Kentucky is in the middle of everything, which is an excellent advantage in distributing materials and goods to a vast consumer and industrial market. In addition, with one of the best transportation systems in the country, the state is served by twenty significant highways and interstates, rail networks, five commercial airports, and a dozen regional airports.
The states provide businesses with progressive tax incentives programs and flexible financial assistance, which is an added advantage for businesses expanding, reinvesting, or locating in Mississippi. Companies in Kentucky are provided with a conducive environment for efficient, fast, and personalized services and enhanced customer experience. Most people prefer setting up shop in the state because of the quality of life, which is a result of the low cost of living compared to a majority of other states in the country.
Kentucky is not a franchise registration state since there is no specific franchise law that is enacted. However, franchisors must file their franchise with the state, making Kentucky a franchise filing state. This means that a franchisor with the intent of offering or selling a franchise to a franchisee in the state needs to comply with the state’s Business Opportunity Laws. The Business Opportunity Act stipulates that the franchisors submit a notice of exemption from registering their franchise in Kentucky.
For a franchiser to be considered for exemption, Business Opportunity Laws mandate that it has to meet the definition of a franchise according to the Federal Trade Commission. In addition, the franchisor should adhere to the regulations set by the FTC laws , on prohibitions and disclosure requirements about the business opportunity and franchising ventures as stated under Franchise Rule 16 CFR Part 436.
According to Kentucky’s Business Opportunity Act, for a franchisor to apply and qualify for an exemption, they need to ensure that they submit an affidavit of business opportunity exemption and a copy of an updated Franchise Disclosure Document to the Office of the Attorney General of Kentucky. The state does not require filing fees for all franchising in the form, which is done by mail. In addition, the filing process is only done once, and franchisors do not need to renew.
It is advisable to consult a professional franchise lawyer when filing to prevent costly errors when filling your affidavit of Business Opportunity Exemption in the state. Having a well-informed franchise lawyer also helps ensure that the FDD copy submitted meets the definition of a franchise according to the Business Opportunity Act and complies with other relevant FTC laws on franchises.
.For more information on how to register your franchise in Kentucky, visit the Franchise Marketing Systems site: https://www.fmsfranchise.com/learn/resources/state-guidelines/