Chapter 12: Marketing Plan and Promotional Activities

 

 

SEC. 1                MPCP Management / Supervisory Responsibilities

UnFranchise® Owners are paid commissions for managing, training, supplying, supporting and motivating their organizations to produce retail sales volume. There must be an ongoing sales and supervisory function. An UnFranchise Owner does not earn commission under the MPCP solely on production. UnFranchise Owners are paid for managing their organizations producing retail sales. UnFranchise Owners must be able to provide documentation demonstrating execution of these functions upon request by Market America. The following guidelines apply to an UnFranchise Owner’s responsibilities under the MPCP. Failure to perform the management responsibilities described below is grounds for corrective action by the company, including, but not limited to, forfeiture or reversal of commission checks, required additional training, and in the case of chronic or severe failure to perform the duties, termination of the UnFranchise Owner’s contract.

UnFranchise Owner: UnFranchise Owners have the ultimate responsibility for ensuring their desired level of success. They have the responsibility for being knowledgeable about the Market America Career Manual contents (i.e., policies, procedures, rules and regulations).

Sponsor: Sponsors have the specific responsibility to comply with all provisions relating to sponsorship described in the Terms and Conditions of the Independent UnFranchise Owner Application and Agreement, as well as other applicable policies and procedures.

Coordinator: In addition to those responsibilities specified in the “Sponsor” section above, Coordinators must train and work with all UnFranchise Owners in their organization down to the next active Coordinator. Additionally, they must supervise the downline Coordinators and make sure these Coordinators are supporting and training all UnFranchise Owners in their organizations. A Coordinator is responsible for presenting the Marketing Plan for new UnFranchise Owners.

Executive Coordinator: In addition to those responsibilities specified in “Sponsor” above, Executive Coordinators are contractually bound (i.e., Executive Coordinator Acknowledgment and Agreement) to enforce the policies, procedures, buyback guarantee, return merchandise policy, and rules and regulations to the level of the next Executive Coordinator in their downline organization. If the next downline Executive Coordinator is not fulfilling these responsibilities, the upline Executive Coordinator must notify the upline leadership, and must fulfill the responsibilities of the non-compliant downline Executive Coordinator until another downline Executive Coordinator is developed in that organization who assumes/fulfills those responsibilities for the organization.

Certified Executive Coordinator: In addition to those responsibilities specified in “Sponsor” and “Executive Coordinator” above, Certified Executive Coordinators must provide Basic 5 Trainings for all UnFranchise Owners in their organization down to the next Certified Executive Coordinator. Only Certified Executive Coordinators (i.e., Executive Coordinators who have passed the Executive Coordinator Certification Training) may conduct New UnFranchise Owner Trainings and Basic 5 Trainings.

Professional Coordinators and Higher Pin Levels: In addition to those responsibilities specified above, these managers must ensure that all UnFranchise Owners in their downline organizations are being properly supported and trained through communication and ongoing supervisory functions to downline leadership.

Certified Trainers: Certified Trainers shall fulfill all responsibilities in accordance with the policies and procedures in the Market America Career Manual. They also shall ensure that any UnFranchise Owner in their downline requiring an Executive Coordinator Certification Training be provided such training, even if it requires the Certified Trainer to travel to a distant geographic location to do so.

Advisory Council Members: Advisory Council members shall organize meetings in new geographic areas of growth where they have downline UnFranchise Owners; resolve disputes between lines of sponsorship; work with other Advisory Council members to provide training on a national basis, implement the National Meeting, Training and Seminar System within their downline, enforce the policies, procedures, rules and regulations in all lines of sponsorship through all means provided by the Market America Career Manual.

SEC. 2                RECRUITING

UnFranchise Owners are compensated only for personal sales production from their sales and distribution organizations within their downline according to company policy, procedures, rules and regulations, and for their management and supervisory role for their downline organizations. An UnFranchise Owner is not compensated for sponsoring/recruiting new UnFranchise Owners.

SEC. 3                RETAIL SALES REQUIREMENT

In order to consummate acceptance as an active and qualified UnFranchise Owner, the UnFranchise Owner must have a minimum of two retail sales totaling $200.00 and submit to Market America a Form 1000 accompanied by at least two retail receipts substantiating $200.00 in retail sales to end consumers within a Three-Q-Date period of qualifying a BDC. Each UnFranchise Owner must personally make the retail sales reflected on the Form 1000 to his or her own customer[s], and each UnFranchise Owner must personally complete and submit the Form 1000 to Market America.

SEC. 4                PERSONAL CONSUMPTION OF PRODUCTS

Market America’s Management Performance Compensation Plan is based upon retail sales to the end consumer. The company recognizes that UnFranchise Owners may wish to purchase products in reasonable amounts for their own personal consumption and/or use.

SEC. 5                SPONSORSHIP RIGHTS AND OBLIGATIONS

All UnFranchise® Owners have the right to sponsor new UnFranchise Owners into their downline organization provided they generate $200.00 in retail sales and submit documentation to the company within 30 days of sponsorship.

(A)     New UnFranchise Owners: Each new UnFranchise Owner has the ultimate right to choose his/her own sponsor.

(B)     Sponsorship Conflicts: If two UnFranchise Owners claim to be the sponsor of the new prospect, the company may, at its discretion, regard the first executed and received Application and Agreement as controlling. The company also reserves the right to review each situation and adjust sponsorship rights accordingly.

(1)     As a general rule, it is good practice to regard the first UnFranchise Owner that meaningfully works with a prospect  as having first claim to sponsorship. Basic tenets of common sense and consideration should govern.

(2)     UnFranchise Owners who sponsor other UnFranchise Owners must fulfill the obligation of a bona fide supervisory, distributing and selling function in the sale and distribution of products to the end consumer, and in the training of those UnFranchise Owners sponsored. UnFranchise Owners must actively pursue ongoing contact, communication and management activities with their organization. Failure to fulfill this obligation may result in loss of sponsorship rights and/or termination at the company’s sole discretion.

(C)     Lack of Sponsorship: If an UnFranchise Owner does not have a sponsor entered into the computer database because of same household, failure to enter a sponsor on the original application, etc., and that UnFranchise Owner wants to have a sponsor entered into the computer database, he/she must submit a letter of request, attention of the Compliance Department, explaining the situation. The letter must be signed by both the UnFranchise Owner and the proposed sponsor. UnFranchise Owners should allow the Compliance Department at least two weeks to notify them if sponsorship was approved.

SEC. 6                UNETHICAL ACTIVITY

In the conduct of their business, UnFranchise Owners shall safeguard and promote the reputation of the products of the company and shall refrain from all conduct which might be harmful to the reputation of the company.

(A)     Products: The marketing of such products shall be consistent with the public interest, and avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices.

(B)     Advertisements: Independent UnFranchise Owners shall not advertise company products and/or its Marketing Plan except as specifically approved by the company.

(C)     Representation: Independent UnFranchise Owners agree to make no false or fraudulent representation about the company, the products, the Management Performance Compensation Plan, or income potentials.

(D)     Compliance: Failure to comply with this obligation may result in termination and possible legal action.

SEC. 7                INCOME CLAIMS

UnFranchise Owners may only use income claims published by Market America. No unauthorized claims are permitted for recruiting or any other purpose. Use of unauthorized income claims is grounds for initiation of Corrective Action Procedures by the company. Unauthorized income claims are not permissible even if Market America’s name is not used in the advertisement or claim. Canadian UnFranchise Owners must make fair, reasonable and timely disclosure of information relating to compensation if they make an income claim. Such disclosure will be considered sufficient only if UnFranchise Owners use the income disclosure information made available by Market America in this Career Manual.

SEC. 8                PRESENTATION OF MARKETING PLAN

(A)     Speakers’ Bureau Members (Category 1 or Category 2): Speakers’ Bureau Members may present the Management Performance Compensation Plan segment at an UnFranchise® Business Presentation.

(B)     Certified Executive Coordinators: Certified Executive Coordinators may present the Management Performance Compensation Plan in settings where no fee is charged, such as a one-to-one meeting.

(C)     UnFranchise Owners: UnFranchise Owners may hold “one-to-one” or closed presentations but must follow the format provided by the company in official company literature and audio/video materials.

(D)     Misrepresentation: Any misrepresentation of the Marketing Plan or Management Performance Compensation Plan will be grounds for termination and possible legal action.

SEC. 9                GOVERNMENTAL ENDORSEMENTS

Federal and state regulatory agencies, as a practice, do not approve nor endorse direct sales programs or any other type of business activity. Therefore, UnFranchise® Owners shall not represent or imply, directly or indirectly, that Market America and its programs have been “approved” or “endorsed” by any governmental agency.

SEC. 10              PRESS INQUIRIES

Any inquiries by any type of media (television, radio, print, etc.) are to be referred to the company’s Public Relations Department immediately. This policy is to ensure accuracy and consistent public image.

SEC. 11              INTERNATIONAL EXPANSION

Market America will continue to expand internationally. However, Market America cannot permit its future access to potential new markets to be impeded or denied by a few premature, unauthorized and uninformed UnFranchise Owners.

(A)     Restrictions: To prevent abuse, the following restrictions shall be strictly enforced:

(1)     UnFranchise Owners must not engage in any unauthorized activity in any unopened country/territory prior to authorization by Market America.

(2)     UnFranchise Owners can only conduct meetings to explain the marketing plan and engage in any type of recruiting activities in countries where Market America or its affiliated companies are open for business or in countries listed under the Emerging Market Program (“EMP”). Note: Please visit your UnFranchise Business Account to learn more about EMP countries.

(3)     UnFranchise Owners must not export any Market America branded products or literature.

(4)     UnFranchise Owners may only promote or refer Market America branded products to anyone in any unopened country/territory and in the EMP countries through the UnFranchise Owner’s GLOBAL.SHOP.COM website.

(B)     Emerging Market Program (“EMP”): EMP provides a slimmed–down, streamlined version of the Market America business, which allows the company to assess potential expansion to a full “market” country in the future. Independent UnFranchise Owners may invite residents of EMP countries to participate in their organization under a streamlined version of the Market America Marketing Plan.

(C)     GLOBAL.SHOP.COM: GLOBAL.SHOP.COM allows customers from anywhere to buy Market America branded products. Independent UnFranchise Owners who refer Market America branded products in other countries via GLOBAL.SHOP.COM earn home country BV. In addition to BV, UnFranchise Owners will earn retail profit for sales made via GLOBAL.SHOP.COM to be delivered in countries where Market America and/or its affiliates do not have in-country operations. No retail profit will be earned from sales made via GLOBAL.SHOP.COM to be delivered to countries where Market America and/or its affiliated companies have operations, specifically Australia, Taiwan, Singapore, Hong Kong, Spain and United Kingdom. Products purchased from GLOBAL.SHOP.COM shall be for personal consumption only and shall not be retailed. Note: Restrictions may apply.

(D)     Corrective Action: Market America will use the Corrective Action Procedures set forth in the Career Manual to discipline UnFranchise Owners who violate Market America’s pre-launch activity restrictions. Those Corrective Action Procedures include suspension and/or termination for violating UnFranchise Owners.

(E)              UnFranchise Owner Notification: Market America will notify UnFranchise Owners of any plans for opening international markets. Meanwhile, UnFranchise Owners should take no premature steps into currently unopened markets, as this could jeopardize international expansion for all UnFranchise Owners in the future. If UnFranchise Owners have an interest in a particular international market(s) for potential expansion, they can submit such information in writing to Market America, attention of the Legal Department.   

 

Last Modified :08/24/2015 9:26:28 AM EDT