Chapter 10: UnFranchise Owner Application, Renewal and Status



SEC. 1                Independent Distributor Application and Agreement

The Marketing Plan and Management Performance Compensation Plan as presented in Part II of the Career Manual, and the Independent Distributor Application and Agreement constitutes the entire agreement between Market America and Distributors regarding their business relationship (inclusive of amendments from time to time, as published on your UnFranchise® Business Account or in official company literature).

SEC. 2                Acceptance

All Distributors must complete an Independent Distributor Application and Agreement to be accepted by Market America as a Distributor. Market America reserves the right to accept or reject anyone as a Distributor, as well as applications for new Business Development Centers (BDCs); or applications for renewal. Note: Distributors 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.

SEC. 3                Valid Identifications

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

SEC. 4                Age of Majority

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

SEC. 5                No Purchase Required

No individual is 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 Distributor Cost for retail sale and/or personal consumption.

(B)     MPCP Eligibility: Sales Representatives may NOT participate in the Management Performance Compensation Program until they change to Distributor status (i.e., submission of the subscription fee with a new Distributor Application and Agreement 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 Distributors. 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.

SEC. 6                Subscription Kit

The status of Distributor is given to applicants completing an Independent Distributor Application and Agreement 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:

  • Getting Started Guide
  • “Lets Get Started” CD Set
  • Subscription to Market America’s Powerline magazine
  • The Market America Career Manual and Career Manual CD
  • The ma® digital mp3 player and booklet

SEC. 7                Renewal of Application and Agreement

All Market America Independent Distributors (Including Sales Representatives) are required to submit an Annual Renewal Form, filled out completely in a timely manner. Each Distributor must pay his/her own Annual Renewal Fee with an acceptable method of payment. No other person, current Distributor or otherwise, may pay for your Annual Renewal Fee.

SEC. 8                Representation of Status

Distributors must always use the word “independent” to describe their status. This means, for example, “Independent Distributor” or “Independent UnFranchise Owner.” If the Distributor 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 Distributor.

SEC. 9                Independent Distributor / Market America Relationship

Distributors are independent marketing contractors, fully responsible for their own business practices, and are not to be considered purchasers of a franchise.

(A)     Relationship: The agreement between the company and its Distributors does not create an employer/employee relationship, agency, partnership or joint venture between the company and its Independent Distributors.

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

(C)     Supervision/Direction: Each Distributor 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 Career Manual and amendments.

SEC. 10              Payment of Income Taxes

All Distributors are responsible for paying local, state and federal income taxes due on income generated as an Independent Distributor for the company.

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

(B)     Retail Sales Records: Distributors 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.

SEC. 11              Distributors Election to Cancel

The Independent Distributor Application and Agreement may be canceled at any time and for any reason by a Distributor. Distributors must notify the company of their election to cancel in writing. This correspondence must include the canceling Distributor’s signature(s). If
a Distributor cancels his/her distributorship, or if the distributorship 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 Distributor having more than one distributorship at any time. The only exception to the 270-day rule is a business-entity distributorship that has been canceled by Market America because of non-compliance with the business entity documentation policy (see Business
Entity Distributorships


Last Modified :09/16/2014 5:32:03 PM EDT