KRS 367.801: Definitions for KRS 367.801 to 367.819 and 367.990.

As used in KRS 367.801 to 367.819 and KRS 367.990, unless the context requires

otherwise:

(1) "Office" means the Office of Consumer Protection in the Office of the Attorney

General.

(2) "Person" means natural persons, corporations, trusts, partnerships, in corporated or

unincorporated associations, or any other legal entity.

(3) "Offeror" means a person who is engaged in the business of selling business

opportunities including any subsidiary business which affiliates with the offeror for

goods or services or locations.

(4) "Consumer/investor" means a person who has purchased or is solicited for the

purchase of a business opportunity.

(5) "Business opportunity" means the sale or lease, or offer to sell or lease, of any

products, equipment, supplies, or services for the purpose of enabling the consumer

investor to start a business when:

(a) The offeror obtains an initial required consideration of not less than five

hundred dollars ($500) from the purchase or lease of the business opportunity

or inventory associated therewith; and

(b) The offeror has represented, directly or indirectly, that the consumer/investor

will earn, can earn, or is likely to earn a gross or net profit in excess of the

initial required investment paid by the consumer/investor for the busine ss

opportunity; or

(c) 1. The offeror has represented that he has knowledge of the relevant

market and that the market demand will enable the consumer/investor to

earn a profit from the business opportunity; or

2. The offeror has represented that locations will be provided or assistance

will be given directly or indirectly to the consumer/investor in finding

locations for the use or operation of the business opportunity including,

but not limited to, supplying the c onsumer/investor with names of

locator companies, contracting with the consumer/investor to provide

assistance with or supply names of or collect a fee on behalf of or for a

locator company; or

3. The offeror has represented that there is a guaranteed mark et or that the

offeror will buy back or is likely to buy back any product made,

manufactured, produced, fabricated, grown, or bred by the

consumer/investor using, in whole or in part, the products, supplies,

equipment, or services which were initially sold or offered for sale to the

consumer/investor by the offeror.