Kentucky — Business Opportunity Bond
Prepare Kentucky's business-opportunity security using the offeror's prior-year agreement records. For offerors subject to registration, the statute requires security before offering and sets the amount at total initial payments under the previous year's Kentucky agreements, with a $75,000 minimum. Confirm the applicable registration and required sum before completing the application.
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- Recorded state
- Kentucky
- Bond type
- Business Opportunity / Franchise Bond
- Category
- Business operations & taxes
What this bond does
Insure the veracity of statements in the offeror's business-opportunity registration. Section 367.815 also provides an action against the security for covered statutory violations, breach of the business-opportunity sale contract or obligations arising from it.
- Who needs it
- Business-opportunity offerors subject to registration with the Kentucky Attorney General's Office of Consumer Protection. Match the actual offering to the Act's definition and applicable exemptions rather than assuming every business sale or franchise is covered.
- Who it protects
- The bond is in favor of the Attorney General of Kentucky. Any person damaged by the covered violations or contractual obligations may bring an action against it. The surety's aggregate liability is limited to actual damages and cannot exceed the bond amount; that differs from the offeror's separate statutory liability.
Your bond option
This is the option on record for this bond.
- Bond optionPurchase Now (opens in a new tab)Continue to our secure checkout partner, Propeller (opens in a new tab).
The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- Kentucky Revised Statutes: section 367.801 definitions (opens in a new tab)Checked October 27, 2026
- Kentucky Revised Statutes: section 367.805 registration (opens in a new tab)Checked October 27, 2026
- Kentucky Revised Statutes: section 367.815 security, liability and release (opens in a new tab)Checked October 27, 2026
- Kentucky General Assembly: current Chapter 367 index (opens in a new tab)Checked October 27, 2026
Have these ready
- Confirm whether the offering requires registration under the Kentucky business-opportunity provisions.
- Match the legal offeror, trade names and Attorney General's registration request.
- Assemble the previous year's Kentucky agreements and their total initial payments.
- Confirm the required sum, authorized surety and currently accepted execution and submission instructions.
- Coordinate registration, material-change notices and any later release petition with the Office of Consumer Protection.
Questions about this bond
Is $75,000 always the correct bond amount?
It is the statutory minimum. Section 367.815 uses total initial payments under the Kentucky business-opportunity agreements entered into during the previous year when that total requires a higher amount. Confirm the records and required sum rather than choosing the minimum automatically.
Can I assume the bond ends when I stop offering opportunities?
The statute allows a petition for release supported by a verified statement that no Kentucky business opportunities have been offered for the last five years. Stopping today does not itself release the bond. Obtain the Office's accepted release and continuation instructions.
What follows Purchase Now?
Propeller's Kentucky business-opportunity application opens in a new tab. Match the offeror, applicable registration, Attorney General's security requirement, prior-year-based sum, dates and accepted execution before finalizing. Submit the completed security with the required registration paperwork; the provider application does not authorize offers or complete State registration.