Chapter 10: UnFranchise Owner Application, Renewal and Status


The Marketing Plan and Management Performance Compensation Plan (the MPCP), the policies and procedures in Part 2 of this UnFranchise Manual, and the Independent UnFranchise Owner Application and Agreement (IUA&A) constitutes the entire agreement between Market America and UnFranchise Owners regarding their business relationship.

Market America, at its sole discretion, may amend the MPCP, the policies and procedures, or the terms of the IUA&A at any time. Such amendments will be effective immediately upon being posted to Your continuance as an UnFranchise Owner or Sales Representative with Market America after a modification or change to the policies and procedures and/or the terms of the IUA&A have been posted will mean that you accept and agree to any changes that have been posted. 


All UnFranchise Owners must complete an IUA&A to be accepted by Market America as an UnFranchise Owner. Market America reserves the right to accept or reject anyone as an UnFranchise Owner, as well as applications for new Business Development Centers (BDCs); or applications for renewal. 

Note: UnFranchise Owners must send in the original hard copy application or sign up with the assistance of the sponsor via the online sign-up process. No faxed applications will be accepted.


All United States UnFranchise Owners are required by federal law to provide a Social Security number or Federal Identification number (for business entities). All Canadian UnFranchise Owners are required to provide a Social Insurance number or a business number. 


All UnFranchise Owners must be the age of majority in the state, province or territory in which they sell and distribute Market America products.


An individual is not required to purchase Market America products, services or sales aids, or pay any fee in order to become a Market America Sales Representative.

(A)     Rights: Sales Representatives may purchase Market America products at UnFranchise Cost for retail sale and/or personal consumption.

(B)    MPCP Eligibility: Sales Representatives may NOT participate in the MPCP until they change their status to an UnFranchise Owner (i.e., submission of the subscription fee with a new IUA&A and submission of the renewal fee each year, thereafter).

(C)     Limitations: Business Volume generated by Sales Representatives shall count towards Group Business Volume of qualified upline UnFranchise Owners. However, Sales Representatives will not count toward activating their sponsor’s BDC. Because they have not submitted a subscription fee, Sales Representatives will receive none of the benefits derived from purchasing the subscription. 


The status of an UnFranchise Owner is given to applicants completing an IUA&A and submitting a subscription fee with the application. The subscription kit is provided at Market America’s cost and additional monies are used for the processing of mailings throughout the year. Market America reserves the right to change or modify the subscription kit. However, the subscription fee, will, at a minimum, provide:

•    A Getting Started Guide 
•    Subscription to Market America’s UnFranchise Owner Magazine
•    The Market America UnFranchise Manual
•    The Market America Global Annual Report
•    The Market America Product Catalog


All Market America Independent UnFranchise Owners (Including Sales Representatives) are required to submit a complete Annual Renewal Form (Form 1052) in a timely manner. Each UnFranchise Owner must pay his/her own Annual Renewal Fee (Fee) with an acceptable method of payment. No other person, current UnFranchise Owner or otherwise, may pay for another UnFranchise Owner’s Fee.


UnFranchise® Owners must always use the word “independent” to describe their status. This means, for example, “Independent UnFranchise Owner.” If the UnFranchise Owner has a business telephone, the telephone may not be listed under the Market America name, or in any other manner, which does not disclose the independent contractor status of the UnFranchise Owner.


UnFranchise Owners are independent contractors, responsible for their own business. The Agreement between the Independent UnFranchise Owner and Market America should not be construed to create a relationship of employer-employee, agency, partnership or joint venture between the UnFranchise Owner and Market America, or between the UnFranchise Owner and sponsor. The Agreement does not constitute the sale of a franchise or a distributorship, and no fees have been or will be required from an UnFranchise Owner for the right to distribute Market America’s products pursuant to the Agreement. 

(A)    An UnFranchise Owner must follow all federal, state, county and local laws, rules and regulations pertaining to this Agreement and/or the acquisition, receipt, holding, selling, distributing or advertising of Market America products;

(B)    An UnFranchise Owner has no authority (expressed or implied) to bind the company to any obligation with a third party. Each UnFranchise Owner shall indemnify and hold harmless the company from any claims, damages or liabilities arising out of the UnFranchise Owner’s business practices;

(C)    An UnFranchise Owner must make, execute or file all reports and obtain all licenses as are required by law or public authority with respect to the Agreement and/or the receipt, holding, selling, distributing or advertising of Market America products; and

(D)    Each UnFranchise Owner is encouraged to set up his/her own hours and to determine his/her own methods of sale, so long as he/she is in compliance with the policies, procedures, rules and regulations set forth in the Market America UnFranchise Manual and amendments.

UnFranchise Owners are not employees of Market America under any federal, state or local laws, including but not limited to the Federal Unemployment Tax, Workers’ Compensation, income tax withholding, or any other federal, state or local laws.


It is the responsibility of the UnFranchise Owner to pay self-employment, federal, state and local income taxes due on income generated as an Independent UnFranchise Owner, as required by law.

(A)    General Business Records: Complete and accurate record keeping of all business transactions and promotional activities is the sole responsibility of the Independent UnFranchise Owner.

(B)    Retail Sales Records: UnFranchise Owners must maintain records of retail sales, turn in a minimum of $200.00 in retail receipts every Three-Q-Date or Three-Start-Date Period, and be able to furnish all receipts requested by the company in order to qualify for commissions.


Either party may terminate the IUA&A for any reason and at any time upon giving thirty (30) days written notice to the other party. However, Market America may terminate the IUA&A with less than thirty 30) days written notice for serious violations of the policies and procedures, in accordance with the Corrective Action Procedure described in Chapter 14, Sec. 1 of this UnFranchise Manual. The written correspondence must include the canceling UnFranchise Owner’s signature(s). If an UnFranchise Owner cancels his/her UnFranchise Business, or if the UnFranchise Business is terminated for any reason, then he/she cannot submit another application to Market America until after 270 days from the last date of inactivity (date of the last purge). See 270-Day Rule. This includes submitting an application under a different name, a corporate name, a spouse’s name, or in any other manner which will result in the UnFranchise Owner having more than one UnFranchise Business at any time. The only exception to the 270-day rule is a business-entity UnFranchise Business that has been canceled by Market America because of non-compliance with the business entity documentation policy (see Business Entity UnFranchise Businesses).