Chapter 13: Miscellaneous UnFranchise Owner Rights and Obligations

 

SEC. 1                Genealogy Report Requests

Computerized genealogy reports will be mailed upon request. There will be a charge (Refer to “GEN” code on current price list) per report, and payment must be received prior to mailing. The Distributor agrees not to divulge such information to any third party directly or indirectly. The Distributor and the company agree that, except for this agreement of confidentiality and nondisclosure, the company would not provide (or make available to UnFranchise® Management System members) confidential information.

SEC. 2                Distributor Liability for Breach of Confidentiality by Agent

Distributors may be given access to certain confidential information of Market America and Market America’s Distributors, Preferred Customers and others with whom Market America has a business relationship (Confidential Information). Distributors must protect and keep the Confidential Information secret and confidential. 

Distributors may choose to hire one or more employees, agents, consultants and/or contractors (Agents) to assist them in the operation of their Market America business. A Distributor will be solely responsible and liable to Market America (or to a Preferred Customer or Independent Distributor) for any breach or misuse of the Confidential Information by the Distributor or his/her Agent. Therefore, Market America strongly encourages any Distributor with an Agent to require the Agent to sign a binding Confidentiality Agreement prior to the disclosure of Confidential Information to the Agent. 

A Distributor will indemnify and hold harmless Market America, its owners, shareholders, officers, agents, representatives and employees from and against any and all liability arising from any breach of confidentiality made by the Independent Distributor, or any Agent of the Independent Distributor.

SEC. 3                Indemnification of Market America

Each Distributor agrees to indemnify and hold harmless Market America, its officers, agents and directors against any claims, demands, liability, loss, cost or expense, including, but not limited to, attorney’s fees arising or alleged to arise in connection with that Independent Distributor’s business.

SEC. 4                Vendor / Manufacturer Information

Distributors may not communicate (including phone calls, emails, etc.) directly with Market America’s manufacturers, suppliers or vendors without written permission from Market America (the only exception being acceptable contact at corporate-sponsored events).

(A)     Vendor Contact/Communication: Distributors may not, under any circumstances, arrange for Market America manufacturers, suppliers or vendors to attend meetings, speak at meetings, or conduct product training.

(1)     Market America will make all arrangements, and only Market America shall book such engagements (i.e. training) periodically.

(2)     Violation of this policy is grounds for immediate termination.

(B)     Product Information: Additional product information, as needed, shall be obtained only through contacting the Market America Product Information Department.

(C)     Prohibition of Benefits: Distributors are not permitted to receive commissions, free or discounted products, bonuses, nor any other benefit from any current or prospective vendor, manufacturer or supplier to Market America, for arranging contact between Market America and the vendor, manufacturer or supplier.

SEC. 5                Voice Mail Access to Market America Groups

Market America has arranged with its approved voice mail provider to provide voice mail services for Market America Distributors. Distributors who purchase voice mail services will sign a separate agreement with the voice mail provider. However, Market America reserves the exclusive right to determine who has access to other Market America Distributors through the voice mail provider through which Market America arranges voice mail service for its Distributors.

(A)     Policy Violations Investigations: If Market America receives information that a Distributor has breached his/her Independent Distributor Application and Agreement or violated the company’s policies and procedures, Market America may, at its sole discretion, instruct the voice mail provider to block the Distributor’s access to other Market America Distributors through the voice mail system. Market America will promptly review the evidence of the Distributor’s breach or violation and notify him/her whether, or under what circumstances, Market America will instruct the voice mail provider to remove the block on his/her voice mail.

(B)     Cancellation of Distributor Contract: If Market America cancels or does not renew the Distributor’s Independent Distributor Application and Agreement, or if the Distributor otherwise ceases to be an active Market America Distributor for any reason, Market America may, at its sole discretion, instruct the voice mail provider to block the Distributor’s access to other Market America Distributors through the voice mail system.

(C)     Right to Service: If for any reason Market America instructs the voice mail provider to block a Distributor’s or former Distributor’s access to other Market America Distributors through the voice mail system, the blocked Distributor will have the option to continue his/her voice mail service, under the terms of his/her agreement with the voice mail provider, without access to the Market America voice mail groups.

SEC. 6                Check Writing Privileges

All Distributors (including Sales Representatives) initially have Check Writing Privileges. They simply need to sign on the appropriate line of the Independent Distributor Application and Agreement and enter their driver’s license number.

(A)     Rights: This service allows Distributors to write personal checks to Market America for orders and services.

(B)     Limitations:

(1)     The limit on personal checks received per day from non-UnFranchise® Management System (UFMS) members is the sum total of $1,000.00 (e.g., two checks for $500, one check for $1,000, four checks for $250, etc.). The total shall not exceed $1,000.00 per day from non-UFMS members or the order(s) will be held 15 business days.

(2)     The limit on personal checks received per day from UFMS members is the sum total of $2,500.00. The total shall not exceed $2,500.00 per day from UFMS members or the order(s) will be held 15 business days.

(3)     Counter checks or starter checks will not be accepted. Orders with counter checks or starter checks as payment will be returned to the Distributor unfulfilled.

(4)     All first-time (initial) orders paid by the new Distributor’s personal check will enter the 15-business-day hold process. It is highly recommended that a money order or cashier’s check be used for the first order, or have the sponsor pay for the first order.

(5)     Only Distributors’ checks will be accepted. Orders placed using a non-Distributor’s check will have the order and check returned unprocessed.

(6)     Checks written with errors will result in the order and the check being returned to the Distributor unprocessed.

(7)     Market America will not accept credit card checks. Orders placed using a credit card check will have the order and check returned unprocessed.

(8)     Checks must have the account holder’s name and address printed on them by the bank. Orders with checks that do not have the account holder’s name and address printed on them by the bank will be returned to the Distributor unfulfilled.

SEC. 7                Non-sufficient Funds (NSF)

This policy is applicable to returned personal checks, and electronic checks on the website, bounced drafts or bank errors: “Bounced draft” refers to any draft (bank draft Transfer Buying) returned for the following reasons: NSF, stop payment, account closed, authorization revoked, etc.

(A)     Returned Personal Checks, Electronic Checks on the Website, and Bounced Draft Policies:

(1)     All returned checks and drafts will incur a $25.00 service charge. The Distributor must include payment for both the check or draft amount and service charge in order to clear any returned check or draft.

(2)     All returned checks or drafts must be cleared with a credit card, money order, cashier’s check, or certified check. No personal checks will be accepted.

(3)     Distributors must clear bounced checks or drafts within 10 business days beginning the day Market America receives notification from the bank. If the check or draft is not cleared within 10 business days beginning the day Market America receives notification from the bank, the paying Distributor will lose Check Writing Privileges, which means Market America will no longer accept that Distributor’s personal or electronic check. If the check or draft is not cleared within the 10-business-day period, the paying Distributor also loses Bank Draft Privileges — bounced checks count as bounced drafts, and vice versa. Any orders received by Market America with a personal check will be returned unprocessed to the Distributor with a letter stating that he/she must resubmit the order with an acceptable form of payment. If an electronic check order is attempted via the website, the computer system will prohibit the order from being processed.

(4)     If a bounced check is cleared within 10 business days beginning the day Market America receives notification from the bank, and it is the paying Distributor’s first NSF situation, he/she will have Check Writing Privileges restored and will retain Bank Draft Privileges. If the paying Distributor is already on the draft system, the draft will not be canceled.

(5)     If Distributors bounce one draft, they will be terminated from the bank draft system, regardless if cleared within 10 business days or not. However, if the draft is cleared within 10 business days beginning the day Market America receives notification from the bank, and it is the paying Distributor’s first NSF situation, he/she will have Check Writing Privileges restored.

(6)     If Distributors are no longer allowed on the bank draft system, they can get on Transfer Buying with a credit card.

(7)     If a Distributor has two NSF situations of any combination, that Distributor’s Check Writing Privileges are terminated. A bounced draft counts as a bad check. For example: if a Distributor has already bounced a check with the company, then bounces a draft, his/her Check Writing Privileges are terminated. Any orders sent to the company with a personal check after a Distributor is terminated from Check Writing Privileges will be sent back to the Distributor with a letter stating that he/she must resubmit the order with an acceptable form of payment. If an electronic check order is attempted via the website, the computer system will prohibit the order from being processed.

(8)     The first time a Distributor loses Check Writing Privileges he/she is not allowed to write a personal check or use the electronic check ordering option on the website for at least one year. After one year the Distributor may reapply for Check Writing Privileges, if all previous NSF situations were cleared within 10 business days beginning the day Market America receives notification from the bank. If any previous NSF was not cleared within 10 business days, or if the Distributor had more than two  NSF situations, then the Distributor may not reapply for Check Writing Privileges. To reapply for Check Writing Privileges, Distributors must mail or fax a letter of request, attention of the Collections Department, which includes the Distributor’s name, ID number, and the date of the last cleared check with Market America. Reinstatement of Check Writing Privileges is granted at the sole discretion of Market America. If Check Writing Privileges are reinstated and another NSF occurs at any time, the Distributor’s Check Writing Privileges will be canceled permanently.

(9)     Commission and bonus checks will be held until all bounced checks or drafts, including any service charge(s), are cleared with Market America. Any individual commission check will be held for only four consecutive weekly commission cycles from the week the commission check would have otherwise been mailed, and if the bounced check or draft has still not been cleared, the commission check(s) will be forfeited.

(10)     All orders and any other items (forms, requests to change personal information, etc.) that come in while a bounced check is outstanding will be sent back to the Distributor unprocessed with a form letter stating he/she has an outstanding check or draft with the company that needs to be cleared before any new items will be processed. If an electronic check order is attempted via the website, the computer system will prohibit the order from being processed. This includes situations in which someone else pays for the order or in which someone else’s order is being shipped to the Distributor with the outstanding check or draft. The only exceptions are orders paid with money order, cashier’s check, or certified check (see below).

(11)     If a Distributor sends in an order with a money order, cashier’s check, or certified check and there is still an outstanding check or draft, the payment will go towards clearing the debt. If there is not enough money to clear the check or draft, Market America will send the order back unprocessed with a note explaining how the payment was used and what the Distributor still owes. If the payment covers the outstanding debt, and there is still money left, Market America will send as much product as possible with the amount left after the check or draft is cleared.

(12)     BV cannot be placed in any centers for a Distributor that has an outstanding check or draft with the company. This means the sponsor cannot put BV in the Distributor’s center by means of a credit card order or a manual order sent or faxed to the company.

(13)     Distributors on the UnFranchise® Management System (UFMS) cannot use their credit card until their NSF debt is cleared. Upline UFMS members cannot charge orders for these Distributors until the outstanding debt is cleared.

(14)     All Distributors can use their credit card to clear an outstanding balance/debit for themselves or their downline.

(15)     Business Volume for all orders having bounced checks or drafts will go in for the day Market America receives acceptable payment to clear the check or draft (including any service charges). However, if the bounced check or draft is not returned by the bank until after Market America has already paid on that Business Volume, then once the check or draft is cleared, the BV will be placed back to the original day of the order.

(16)     Any checks or drafts not cleared within 30 days will be turned over to Check Fax for collection. If the check or draft is still outstanding after 30 days, it will be turned over to the Credit Bureau for collections. (This means that the debt goes against the paying Distributor’s credit rating.)

(17)     If a Distributor is on the credit card option for Transfer Buying and has an outstanding item with Market America over 30 days old, the Distributor’s credit card option for Transfer Buying will be canceled until the returned item is cleared.

(18)     No information will be accessible to Market America representatives (other than Collections) through the computer database until all outstanding debts are satisfied.

(19)     Stop Payments are considered NSF and are subject to the $25.00 service charge. Market America cannot stop a check submitted from being sent to the bank for processing. If a check is returned to Market America unpaid, it will be considered an NSF incident and will affect that Distributor’s Check Writing Privileges. Note: The only exception is if an order was sent by the Distributor over two weeks prior, and Market America has still not received the order. In this specific situation, if a Distributor wants to place a Stop Payment on the check, he/she should first call the Collections Department at Market America to obtain permission to do so, so that if the order shows up later and the check is deposited by Market America, the NSF will not be held against the Distributor’s Check Writing Privileges.

(B)     Invalid Account or Cannot Locate Account Drafts: The following guidelines apply only to bank drafts submitted via a mailed Transfer Buying form. They do not apply to bank drafts set up online.

(1)     Market America needs a check for the amount of the draft.

(2)     Market America needs the correct banking information. Distributors need to contact their bank and ask for their ACH bank account number. This needs to be sent in with the check to clear the returned draft.

(3)     Market America will not charge the Distributor the $25.00 service charge nor count this as a bad draft as long as it is cleared before the next draft is pulled. If it is not, Market America will cancel all future drafts and there will be a $25.00 service charge because it will be turned over to Check Fax for collections.

(C)     Online Checks and Online Bank Drafts: The following guidelines apply specifically to online checks and/or online bank drafts.

(1)     Because Distributors enter their own banking information when using the electronic ordering option on the website, electronic orders that come back from the bank unpaid for any reason are treated the same as a bounced check or bounced draft (whichever is applicable).

(2)     Distributors will be charged the $25.00 service charge if an electronic check or draft comes back from the bank unpaid for any reason, and this will also count against Distributors’ Check Writing Privileges and/or ability to be on a bank draft.

(D)     Bank Error:

(1)     If it is a bank error, Market America needs the following information:

(a)     A bank letter stating the exact problem in detail (the letter cannot just say it was a bank error).

(b)     An account statement identifying sufficient funds on the day the check or draft was presented for payment.

(c)     An official check from the bank for the $25.00 covering the Market America returned check or draft service charge.

(d)     A money order covering the total of the check or draft.

(2)     All the above information must be received within 10 business days beginning the day Market America receives notice from the bank. If all the information is not received within the 10 business days, the decision will be “denied” automatically, and the draft or check will count against the Distributor.

(3)     Each letter will be handled on a case-by-case basis. Please understand that just because a bank letter is sent doesn’t mean it is approved. It will be further researched, and the Distributor will be notified by telephone as to whether it is accepted or denied.

(4)     If the letter is rejected or the 10-day period lapses, it will count against the Distributor’s Check Writing Privileges and Bank Draft Privileges.

(5)     If the letter is accepted, Check Writing Privileges will not be affected.

(6)     Even though a bank letter is sent, the BV from the order will be placed for the day Market America receives the money order (not backdated for the original day the order arrived at Market America), unless the BV has already been paid on. Market America can only pay commissions on volume when funds are good for that week’s period.

(7)     Please note that if a draft or check is returned again due to a bank error, it will count against the Distributor. Market America can only make an exception once for bank errors.

(E)     Returning Products on a Non-sufficient Funds (NSF) Order: Market America reserves the right to authorize the return of products that are currently in marketable and resalable condition to cover NSF situations.

(1)     Return Procedure: Distributors must write on top of the package “Attn: Collections Department” and include the Return Authorization number (RA#) assigned to the Distributor by the Collections Department (if this is not on the package it will be refused by the Market America warehouse).

(a)     The package must be sent via a shipper that offers package tracking. Market America also recommends that Distributors insure all packages they return to the company.

(b)     The service charge must be received by the Collections Department in the form of a money order or cashier’s check.

(2)     Return Policy: Market America must receive the package and service charge within 10 business days beginning the day Market America receives NSF notification from the bank.

SEC. 8                Market America Partners in Success (MAPS)

MAPS is designed to ensure accountability for upline leadership in meeting their responsibility of managing, training and supporting their downline organizations. This is accomplished by providing a structured program to monitor an upline’s responses to their downline Distributors’ requests for assistance, especially in the areas of the Management Performance Compensation Plan (MPCP) and Distributor-related personnel issues that should be handled by upline leadership in the field. 

(A)     Initial Referral: Distributors will be referred to their upline leadership whenever they call or contact Market America with any of the following:

(1)     Issues or questions which should be handled in training by either the sponsor or upline leadership, especially in relation to the MPCP;

(2)     Issues which are clearly established in the current edition of the Market America Career Manual, or are otherwise accepted as firmly established policies/procedures of Market America;   

(3)     Issues concerning problems with Distributors within one’s organization, which should be directed to upline leadership first.

(B)     Upline Leadership Defined: Distributors are considered upline leadership if they are active in the business (meeting minimum activity requirements) and have attained the Pin Level of Executive Coordinator or higher. Distributors who are referred to their upline leadership through MAPS will be instructed to call the first active upline Executive Coordinator for assistance.

(C)     Upline Leadership Response Time: Once a Distributor has been referred to the upline as part of MAPS, and the referred Distributor has contacted the upline leadership requesting assistance, the upline leader has 72 hours (three business days) from the date of the initial referral to respond to the referred Distributor’s request. This does not mean that the issue must be completely resolved by the upline within 72 hours — the issue may not be able to be resolved at all — but that the upline must respond to the referred Distributor within three business days.

(D)     Resolution of Referral to Upline Leadership: The referred Distributor will be instructed by Market America to call back to the corporate office within five business days from the date of the initial referral to inform Market America whether or not the upline leader responded to the request for assistance. If the referred Distributor informs Market America that the upline did respond, then the referral is coded as “Resolved.” If the referred Distributor informs Market America that the upline did not respond, then the referral is coded as “Not Resolved,” and the referred Distributor is then referred to the first Upline Vested Interest Distributor (UVI), or if no UVI Distributor is identified, to the next upline leader. If the referred Distributor does not call Market America back within five business days from the date of the initial referral, then the referral is considered resolved and will be coded as such.

(E)     Upline Vested Interest Distributor Defined: Distributors designated as UVI Distributors are determined by Market America to have the greatest financial interest in a particular Distributor within their organization. Distributors are considered UVI Distributors if they meet the following criteria:

(1)     UVI Distributors generate 300-4,800 GBV per week on the side of their organization where the referred Distributor resides.

(2)     UVI Distributors generate at least 300 GBV on the opposite side of their organization from where the referred Distributor resides.

(3)     The BDC of the UVI Distributor is activated.

(F)     Upline Vested Interest Distributor Response Time: Once a Distributor has been referred to the UVI Distributor as part of MAPS, and the referred Distributor has contacted the UVI Distributor requesting assistance, the UVI Distributor has 72 hours (three business days) from the date of the initial referral to respond to the referred Distributor’s request. This does not mean that the issue must be completely resolved by the UVI Distributor within 72 hours — the issue may not be able to be resolved at all — but that the UVI Distributor must respond to the referred Distributor within three business days.

(G)    Resolution of Referral to UVI Distributor: The referred Distributor will be instructed by Market America to call back to the corporate office within five business days from the date of the referral to the UVI Distributor to inform Market America whether or not the UVI Distributor responded to the request for assistance. If the referred Distributor informs Market America that the UVI Distributor did respond, then the referral is coded as “Resolved.” If the referred Distributor informs Market America that the UVI Distributor did not respond, then the referral is coded as “Not Resolved,” and the referred Distributor is then referred to the next Upline Vested Interest Distributor, or if no UVI Distributor is identified, to the next upline leader, and so on until the issue is addressed. If the referred Distributor does not call Market America back within five business days from the date of the referral, then the referral is considered resolved and will be coded as such.

(H)     Notification to Upline Leader/UVI Distributor of Referral: Market America will attempt to contact upline leaders and/or UVI Distributors to whom Distributors have been referred. The only notification given to the upline leader/UVI Distributor to whom the Distributor is referred is via a voice mail message. All Distributors who have reached at least the Pin Level of Executive Coordinator are required to maintain a Market America voice mail extension through the Market America provider. If a valid voice mail extension number is not available to the MAPS representative at the time of the referral, no other notification will be attempted. This attempt to contact the upline is a courtesy only and in no way relieves responsibility from the upline leader/UVI Distributor if he/she cannot be contacted by Market America.

(I)      MAPS Rating System: At the end of each MAPS quarter, a report will be run to determine which upline leaders/UVI Distributors have met their responsibility of managing, training and supporting their downline organizations, and which have not. Those upline leaders/UVI Distributors who have failed to meet their managerial/supervisory responsibilities may forfeit commissions as a result of their MAPS rating.

(1)     MAPS Quarter Defined: The MAPS quarter is the same for all Distributors and is based on a calendar year, although the MAPS quarter-ending date will extend to the week-ending Friday of the week that ends that MAPS quarter. E.g., based entirely on a calendar year, the third quarter of the year 2000 would end September 30, 2000, but because the September 30 falls on a Saturday, the MAPS quarter extends to the following week-ending Friday and ends October 6, 2000.

(2)     MAPS Scores: The MAPS Rating System is based on the percentage of referred calls to which the upline leader responded in the appropriate amount of time. The scores are as follows:

No calls       =     M+

100-90%      =     M

   89-80%     =     A

   79-70%     =     P

     69-0%     =     S

(3)     MAPS Score Adjustment: Once a Distributor has been referred to an upline leader through MAPS, the goal is to ensure that the upline leader addresses the referred Distributor’s issue in a timely manner. However, it is even more desirable to the corporate office not to be forced to refer Distributors to their upline at all; this usually means that the upline is already handling these issues before their downline Distributors ever call the corporate office. In an attempt to recognize Distributors who receive only a few referrals for a MAPS quarter, yet may fail for whatever reason to address one of those referrals, there is a MAPS score adjustment for Distributors who receive fewer than five referrals for a given MAPS quarter. Therefore, Distributors will never receive an unacceptable MAPS score for missing only one referral in a MAPS quarter, regardless how many referrals they received for the MAPS quarter.

(a)     Any Distributor who receives fewer than five referrals for a given MAPS quarter will have their MAPS score converted to a percentage as if they had five referrals. For example, if a Distributor received three referrals but only responded to two of them, without the adjustment the Distributor would receive a MAPS score of 67 percent, which is a rating of “S.” However, with the adjustment, the computer system will add two referrals to the total and count them as good scores. Therefore, the Distributor will actually be credited with five referrals, of which four were addressed; this will give the Distributor a MAPS score of 80 percent, which is acceptable. Again, for a second example, if a Distributor received two referrals but only responded to one of them, without the adjustment the Distributor would receive a MAPS score of 50 percent, which is a rating of “S.” However, with the adjustment, the computer system will add three referrals to the total and count them as good scores. Therefore, the Distributor will actually be credited with five referrals, of which four were addressed; this will give the Distributor a MAPS score of 80 percent, which is acceptable.

(b)     Any Distributor who receives five or more referrals for a given MAPS quarter will not have their MAPS score adjusted. For example, if a Distributor received five referrals but only responded to four of them, the Distributor will receive a MAPS score of 80 percent, which is acceptable. No adjustment is necessary.

(4)     Loss of Commissions: If an upline leader has a final MAPS rating at the end of the MAPS quarter that is considered unacceptable, then he/she could forfeit the next week’s commissions earned after the final MAPS rating score is posted. It does not matter in which week the next commission check is earned; whatever that week is, all checks earned for that week under that ID number will be forfeited. A final score of “P” or “S” is considered unacceptable.

(a)     “P” Rating: If a Distributor receives a score of “P” for a given MAPS quarter and has not received an unsatisfactory rating for the previous MAPS quarter, then he/she will receive a warning that his/her duties as outlined by the MPCP have not been met, and that future commissions may be forfeited. No commissions will be forfeited at this time. However, if a Distributor receives a score of “P” for a given MAPS quarter after also receiving an unsatisfactory rating the previous MAPS quarter, then the Distributor will forfeit the next week’s commissions earned after the final MAPS rating score is posted for that quarter.

(b)     “S” Rating: If a Distributor receives a score of “S” for a given MAPS quarter, then the Distributor will forfeit the next week’s commissions earned after the final MAPS rating score is posted for that quarter. If a Distributor finishes three consecutive MAPS quarters with an “S” rating, then his/her distributorship will be reviewed by Market America.

(c)     Amount of Commissions Forfeited: If a Distributor finishes a MAPS quarter with an unacceptable score that results in the forfeiture of commissions, then the Distributor will forfeit the next week’s commissions earned after the final MAPS rating score is posted for that quarter. This includes checks earned from any and all BDCs under that same ID number for that particular week. E.g., if after receiving a MAPS score of 50 percent (“S”) for a given MAPS quarter, a Distributor three weeks later earns $600.00 on his BDC-001, $600.00 on his BDC-002, and $300.00 on his BDC-003, then he/she would forfeit a total of $1,500.00 as a result of MAPS.

(d)     Reset of MAPS Scores: All MAPS scores reset at the beginning of each MAPS quarter, so that all upline leaders begin each MAPS quarter with an “M+” rating for that quarter.           

(J)     MAPS Disclaimer: The MAPS program and its accountability measures are designed as a supplement to the policies and procedures in the Independent Distributor Application and Agreement and the current edition of the Market America Career Manual. They do not supersede such policies and procedures, nor do they limit Market America’s remedies in any way. If a Distributor fails to perform his/her management and supervisory responsibilities, Market America may address the situation with any of the remedies and corrective action procedures described in the Independent Distributor Application and Agreement and the current edition of the Market America Career Manual.  

SEC. 9                Market America Nonprofit Organization (NPO) Program

The Market America Nonprofit Organization (NPO) Program is an opportunity for nonprofit organizations with federal 501(c) status to earn royalties based on the purchases made by its supporters at their favorite Internet stores. The program is only available to nonprofit organizations based in the United States at this time. Any Distributor who is eligible to sponsor Distributors in the United States may also sponsor nonprofit organizations into the NPO Program by agreeing to the NPO Sponsor Agreement.

(A)   Qualification: An NPO Web Portal Agreement must be submitted with one of the following documents:

(1)   A determination letter from the IRS recognizing the Independent NPO as an organization exempt from federal income tax under Section 501(c) of the federal Internal Revenue Code; or

(2)   If the Independent NPO is a church without a 501(c) determination letter, a copy of the church’s EIN documentation furnished by the IRS.

(B)   Acceptance: Upon acceptance of the NPO Web Portal Agreement by Market America, the Independent NPO will be eligible to receive weekly and monthly royalties as described below in the Royalty Payment Plan section.

(C)   Royalty Payment Plan: The following policies apply to the Royalty Payment Plan:

(1)   There is no subscription fee or initial order requirement to participate in the NPO Program. The only requirements for Independent NPOs to receive royalties under the Royalty Payment Plan are the requirements indicated in the NPO Web Portal Agreement. Independent NPOs CANNOT place orders, assign BV or IBV, sponsor Distributors or other Independent NPOs, or enroll in the Transfer Buying program. Representatives of the Independent NPO do not have to attend any training classes, and Independent NPOs are not required to renew the NPO Web Portal Agreement annually.

(2)   All NPO Program administration is performed by the Independent NPO’s sponsoring Distributor. The Independent NPO’s sponsoring Distributor is responsible for ensuring that all marketing, promotional and other activities conducted for the benefit of the Independent NPO comply with the policies of Market America as set forth in this Career Manual.

(3)   The Independent NPO is assigned a unique 9-digit Distributor ID and placed in the MPCP sales tracking system according to the placement indicated on the NPO Web Portal Agreement. Also, a Virtual Account is established for crediting accrued Monthly Royalties. The Independent NPO will not receive a 7-digit Rep ID and will not be able to log into an UnFranchise® Business Account. The Independent NPO’s sponsoring Distributor will have access to UFMS and will be responsible for managing the Independent NPO’s supporters (Preferred Customers).

(4)   Market America will place two (2) Master UnFranchise Owner entries beneath the Independent NPO’s single Royalty Center, one (1) on the left and one (1) on the right. Each of these entries will also be assigned a unique 9-digit Distributor ID.

 
   

(5)   The Independent NPO will have a Web Portal assigned to it, with a name chosen by the Independent NPO, subject to the approval of Market America, where the Independent NPO supporters can shop to generate royalties for the Independent NPO. The BV and IBV from orders placed on the NPO Web Portal will automatically be assigned in rotation to MA-A-002, MA-B-003, MA-A-003, and MA-B-002, in that order. All of the BV and IBV will flow up as usual to upline BDCs and Royalty Centers. The Independent NPO’s sponsoring Distributor cannot place BV or IBV directly into the NPO Royalty Center or the MA BDCs.

(6)   When Independent NPO supporters purchase Market America brand products from the NPO Web Portal, a dollar amount equal to the difference between (a) the purchase price and (b) “Distributor Cost” less shipping and handling and any transaction fees will be deposited into the Independent NPO’s Virtual Account to be issued as Monthly Royalties.

(7)   Weekly Royalties will be generated by accumulated BV and IBV in the Independent NPO’s Royalty Center banks. BV and IBV payouts and bonuses will be issued with the same criteria as in the Management Performance Compensation Plan (MPCP). The Independent NPO may receive Weekly Royalties up to $3,600 per weekly cycle (i.e., $1,500 from BV, $1,500 from IBV, and $600 BV-based bonus).

(8)   Monthly Royalties will be issued for the full balance of the Independent NPO’s Virtual Account at the end of each month as long as the $25.00 minimum payment threshold is met. If the $25.00 threshold is not met, then the balance carries over to the next month.

(9)   NOTE: The Independent NPO does not count as a personally sponsored or qualified Distributor for the sponsoring Distributor, and Independent NPOs cannot re-enter or be assigned more than one Independent NPO Royalty Center.

SEC. 10              Solicitation of Donations and Contributions

Contacts made through Market America should be used exclusively for Market America purposes. These contacts are proprietary information belonging to the company, to which Distributors agree at the time they sign the Independent Distributor Application
and Agreement.

Distributors agree not to solicit other Market America Distributors and/or customers, except for their personally sponsored Distributors and persons they know independently of any Market America contact, for any purpose other than Market America business activities. This policy includes solicitations for other business activities, regardless whether such activity is network marketing or some other type of business, political campaigns, and charitable activities and events. Distributors must not seek to take advantage of their Market America connections to obtain donations for charitable events. Distributors should not send out correspondence of any kind, including but not limited to mailings, voice mails, or printed material, other than to personally sponsored Distributors, soliciting donations. Solicitation at NMTSS events as a speaker, coordinator, or participant is prohibited.

From time to time the company may sponsor or promote charitable activities among Distributors; these activities are exempt from this policy. Distributors may direct inquiries regarding the permissibility of any solicitation to Market America, attention to the Director of Corporate and Field Services.

SEC. 11             Your Market America Independent Distributor Privacy Policy

We appreciate the trust you place in Market America, and we are committed to respecting your privacy and the security of your personal information. Our privacy policy describes the information we collect and how we use it.

(A)   Information We Collect:

(1)   Personal Information: To best serve your needs, we will, from time to time, collect certain information from you. The information we collect may include, without limitation, your name, tax identification number, address, telephone number, email address, corporate information, testimonial, credit card information and date of birth. Personal information will be collected at various times including, without limitation, when you:

  • Submit an Independent Distributor Application & Agreement
  • Register a Preferred Customer
  • Apply to change the name or ownership of your Distributorship
  • Apply to be a Business Entity Distributorship
  • Enroll in or use Transfer Buy
  • Order or reorder products in person, by telephone, by mail or on our website
  • Write an email or letter to Market America
  • Submit a product review, testimonial, power profile or personal success story to Market America
  • Order tickets to an event or seminar
  • Return an item or make an exchange
  • Participate in a marketing survey, promotion or event
  • Attend an event or seminar
  • Contact our customer service or product information departments
  • Register on our website
  • Order products and services from our Partner Stores

(2)   Technical information collected and stored automatically: When you visit our website, we may store some or all of the following: the Internet address from which you accessed the site, the date and time you visited the site, whether you are a new or returning visitor, the page from which you exit the site, what country you are visiting from (your network location), the Internet address of the website from which you linked to the site, the name of the file or words you searched for, items clicked on a page, and the browser and operating system used.

(B)   Using Information We Collect: We want to provide you with the best possible Internet experience and fulfill your orders exactly as you've requested. Additionally, we want to make your experience as an Independent Distributor or Sales Representative a pleasant and successful one. In order to do this, we collect information that allows us to do the following, without limitation:

(1)   Use of Personal Information:

  • Process your order
  • Provide the products and services you request
  • Partner with stores where you like to shop
  • Send you promotional offers
  • Identify the product and service preferences of you and your customers
  • Customize our communications to you
  • Provide information concerning products you have purchased for personal use or sale
  • Improve our product selection and customer service
  • Share your positive product testimonials and personal success stories with others          
  • Enter into an Independent Distributor (or Sales Representative) relationship with you
  • Track and credit BV, IBV and Cashback
  • Monitor your compliance with Market America rules and policies
  • Include your name, stories, testimonials, product reviews, power profiles, images, and commission and retail profit income information:
    • in local and national newspapers, magazines or other media;
    • at events, on CDs, DVDs and other audios and videos, on websites and in publications and literature owned, operated or published by Market America or its affiliates or third parties;
    • in any other Market America communications to the field or others; and/or
    • as otherwise deemed useful or appropriate by Market America.        

(2)   Use of Technical Information: This information is used to measure the number of visitors to the site and to various sections of the site, the percentage of visits that came from particular key word searches, the average time spent on the site by visitors and the average number of page views by visitors. It may also be used to identify system performance or problem areas. We also use this information to help us develop the site, analyze patterns of usage, and to make the site more useful. This information is not used for associating search terms or patterns of site navigation with individual users. The site may periodically delete its web logs. We use third party analytics services to collect and analyze this data, and on occasion, we may provide this information to third party entities we contract with for the purpose of further analyzing website traffic.

(3)   Use of Cookies: Market America uses cookies on our websites. A cookie is a small data file that is stored by your web browser on your computer. Cookies allow us to enhance, personalize and track your online experience, so that the information you receive is more relevant to you. This technology will allow you to move faster through our website once the information is in our database since you do not have to re-enter the same information or log in each time you enter the site.

(C)   Information We Share with Others and Your Privacy Rights:

(1)   It is not a practice of Market America to sell, rent or trade personal information. In order to service our Distributors, Sales Representatives and Preferred Customers, we share limited personal information with our Independent Distributors and affiliates.  Market America's Independent Distributors are obligated to treat the information you supply with confidentiality.

(2)   We share certain limited information with the partner stores where you shop. If you order products from Alice.com they will receive your order information, name, address, telephone number, age and gender, as well as any other information necessary to properly fulfill your order. Their treatment of your Personal Information will be governed by the terms of their Privacy Statement, which we will always provide for your review during checkout, when an Alice.com product is in your cart.  Additionally, we contract with other companies to provide certain services, including without limitation credit card processing, IT consulting, printing, shipping, Internet services, e-commerce, public and media relations.  We make every effort to provide these companies with only the information they need to perform their services. Generally, such companies are prohibited from sharing this information with anyone other than Market America or its Independent Distributors.

(3)   If you apply for the Market America credit card online and you live in the United States, you provide the financial information needed to process your application directly to Barclays Bank, the issuer and the administrator of the credit card program. Barclays Bank is a financial institution, independent of Market America. Barclays Bank has its own privacy and security policies, which you can review at www.juniper.com. Additionally, Barclays Bank is subject to the strict privacy regulations under the Gramm-Leach-Bliley Act, 15 USC § 6801-6827.*

(4)   If you apply for the Market America credit card online and you live in Canada, you provide the financial information needed to process your application directly to MBNA, the issuer and the administrator of the credit card program. MBNA is a financial institution, independent of Market America. MBNA has its own privacy and security policies, which you can review at www.mbna.com/canada. 

(5)     On rare occasions, we may disclose specific information upon governmental request, in response to a court order, or when required by law to do so. We may also share information with companies assisting in fraud protection or investigation. We do not provide information to these agencies or companies for marketing or commercial purposes.* The Market America credit card is not available in Puerto Rico.

(D)   How We Use Email:  When you provide us your email address, we may send you emails necessary to process your order, respond to a request, provide customer service, promote products or services, or assist you in growing your business, inform you about products, services or promotional materials and assist you with the promotion of products and services to your customers. It is our intent to send promotional emails only to those persons who wish to receive them. We provide instructions on how to unsubscribe in our emails.   

(E)   Links to Other Sites: We provide links on our website to other sites. These sites operate independently of Market America and have established their own privacy and security policies. We encourage you to review these policies at any site you visit.

(F)   Updating or Reviewing Your Information: You may review or update your Distributor information (name, address, telephone number, email address, credit card number, etc.) on this website (unfranchise.com) under My Account, Distributor Profile.

(G)   Security:

  • Market America is committed to protecting the privacy of your personal information. It is our intent to protect against the loss, misuse or alteration of information that we have collected from you. We use a variety of current technologies and processes for protection of information we collect, and we limit the information we provide to third parties. 
  • When you make a purchase or submit an Independent Distributor Application & Agreement or other document on our website, your transactional information is transmitted in a safe, encrypted format.

(H)   Privacy of Children on Our Websites: Our website is not intended for use by anyone under the age of 18. We do not knowingly collect personal information from persons under the age of 18.

(I)   Policy Changes: From time to time, we may use customer information for unanticipated uses not previously disclosed in our privacy notice. If our information practices change, we will post these changes in our website. We encourage you to review our privacy policy periodically.

(J)   Your Consent: By using Market America facilities and continuing to order products and services, you consent to the collection and use of your personal and technical information and cookies as detailed in this privacy policy.

(K)   Contact Us: We always welcome your questions and feedback. For privacy-related issues, please contact us at privacy@marketamerica.com.

SEC. 12              Lead Referrals

Some individuals will initially shop for products or inquire about the business opportunity through marketamerica.com, instead of through a Distributor’s individual Portal. In this event, these individuals will be referred to eligible Distributors by Market America.

(A)     A potential customer or business prospect will be referred back to the Distributor who generated the lead whenever possible. To identify the Distributor who generated the lead, Market America has built inquires into the order process which prompt the potential customer or business prospect to identify the Distributor who generated the lead.

(B)     If a potential customer or business prospect was not referred by a Distributor, Market America will refer the lead to a Distributor who meets certain criteria:

(1)     To be eligible to receive leads from Market America, a Distributor must currently be exercising the Monthly IBV Accrual Option by meeting the following requirements:

(a)     A Distributor must order the UnFranchise® Management System (UFMS) monthly by the appropriate monthly Q-date;

(b)     A Distributor must place product orders monthly for the following minimum IBV amounts: 10 IBV for Level 1 (Distributors who have not yet earned an IBV commission check); 20 IBV for Level 2 (Distributors who have earned their first IBV commission check); and 30 IBV for Level 3 (Distributors who have earned an IBV commission check for completing the IBV commission cycle at 5000/5000 IBV), and all such amounts are assigned to BDC-001;

(c)     A Distributor must make at least $50.00 in Partner Store purchases monthly using the Distributor’s Personal Preferred Customer ID;

(d)     At least 50 BV total must be ordered monthly by one or more Preferred Customers through the Distributor’s Web Portal, AutoShip, or other Market America sites (for example, ma® MyWorld, Mini Websites); and

(e)     A Distributor must complete the Getting Started Wizard.

(2)     Each potential customer or business prospect will be referred to an eligible Distributor who shares the same ZIP code as the lead. If no eligible Distributor resides in the ZIP code of the lead, Market America will refer the lead to a Distributor in a nearby ZIP code. Multiple eligible Distributors in a ZIP code will be part of a lead referral rotation, and will take turns receiving referral leads from Market America.

(C)     If a potential customer or business prospect was referred to Market America by a Distributor, but the lead is not able to provide Market America with sufficient information to identify the referring Distributor, Market America will refer the lead to an eligible Distributor. If Market America is made aware of an inaccurate referral, then Market America will take steps to identify the correct Distributor. If Market America is successful in determining the identity of the lead-generating Distributor, the potential customer or business prospect will be redirected to that Distributor. However, previous BV, IBV or retail profit earned by the Distributor who originally received the referral from Market America (or credited to Market America) will not be redirected.

(D)     When a potential customer or business prospect is referred to an eligible Distributor, the BV, IBV and retail profit created as a result of the first order placed by such potential customer within 24 hours of the potential customer’s registration with Market America will go to Market America to help offset the costs associated with the acquiring leads. After the initial 24 hour period, the Distributor will earn all BV, IBV and retail profit associated with any orders placed by the customer.

SEC. 13              Market America Unlabel Owner (ULO) Compensation Plan

The Market America UnLabel Owner (ULO) Compensation Plan is an opportunity for recording artists who have purchased a ULO package from Conquer Entertainment to earn commissions based on the purchases made by their fans from Market America or their favorite Internet stores. Any Distributor who has completed the Music Major training program and who is a Certified Artist Developer (CAD) may sponsor a recording artist into the ULO Compensation Plan.

(A)   Qualification: The ULO must submit the following document(s):

(1)   A signed Terms and Conditions for the UnLabel Owner Compensation Plan; and

(2)   If the ULO is a partnership, corporation, or other form of business organization (hereafter referred to as a business entity), the ULO must provide Market America with documentation detailing all trustees, partners, stockholders, officers and/or directors in the business, their respective Social Security numbers or Social Insurance numbers (for Canada), and their respective business interest. If the business entity is a corporation, a certified copy of the Articles of Incorporation must also be submitted. The partner or officer who submits the documentation must be authorized to enter into binding contracts on behalf of the business.  However, an individual may not be registered as a Distributor and also as a ULO at the same time.

(B)   Acceptance: Upon acceptance by Market America of the signed Terms and Conditions for the ULO Compensation Plan, the ULO will be eligible to receive weekly and monthly commissions as described in the ULO Compensation Plan section below.

(C)   ULO Compensation Plan: The following policies apply to the ULO Compensation Plan, provided the ULO is not also a Market America Distributor:

(1)   There is no additional subscription fee to Market America or initial order requirement to participate in the ULO Compensation Plan. The only requirements for ULOs to receive retail profit or commissions under the ULO Compensation Plan are the requirements indicated in the Terms and Conditions for the ULO Compensation Plan. ULOs CANNOT assign BV or IBV or sponsor Distributors or other ULOs. Representatives of the ULO do not have to attend any training classes, and ULOs are not required to renew the Terms and Conditions for the ULO Compensation Plan annually.

(2)   All ULO Compensation Plan administration is performed by the ULO’s sponsoring CAD. The ULO’s sponsoring CAD is responsible for ensuring that all marketing, promotional and other activities conducted for the benefit of the ULO comply with the policies of Market America as set forth in this Career Manual.

(3)   The ULO is assigned a unique 9-digit Distributor ID and placed in the Management Performance Compensation Plan (MPCP) sales tracking system according to the placement indicated by the sponsoring CAD. Also, a Virtual Account is established for crediting accrued retail profit and commissions. The ULO will not be able to log into an UnFranchise® Business Account. The ULO’s sponsoring CAD will have access to UFMS and will be responsible for managing the ULO’s fans (Preferred Customers).

(4)   The ULO will have SHOP.COM and getconquer.com Web Portals assigned to it, with a name chosen by the ULO, subject to the approval of Market America and Conquer Entertainment, where the ULO’s fans can shop to generate commissions for the ULO. The BV and IBV from orders placed on the ULO’s Web Portals will automatically be assigned in rotation between the HELD 002 and HELD 003, in that order. All of the BV and IBV will flow up as usual to upline BDCs. The ULO’s sponsoring CAD cannot place BV or IBV directly into the ULO’s BDCs.

(4)   When the ULO’s fans purchase Market America-branded products from the ULO Web Portal, a dollar amount equal to the difference between (a) the purchase price and (b) “ULO Cost” less shipping and handling and any transaction fees will be deposited into the ULO’s Virtual Account to be issued as Monthly Commissions.

(5)   Weekly Commissions will be generated by accumulated BV and IBV in the ULO’s BDC’s. BV and IBV payouts will be issued with the same criteria as in the Management Performance Compensation Plan (MPCP). The ULO may receive Weekly Commissions up to $3,000 per weekly cycle (i.e., $1,500 from BV, $1,500 from IBV).

(6)   Monies owed will be issued for the full balance of the ULO’s Virtual Account at the end of each month as long as the $25.00 minimum payout threshold is met. If the $25.00 threshold is not met, then the balance carries over to the next month.

NOTE: The ULO does not count as a personally sponsored or qualified Distributor for the sponsoring CAD, and ULOs cannot re-enter or be assigned more than one BDC.

SEC. 14              Essential Functions of a Distributor

A Market America distributorship is a business.  Ideally, it should be approached with a sense of purpose.  As a business owner, each Distributor is ultimately responsible for carrying out the essential functions of a distributorship for himself or herself.  These essential functions include, without limitation: (A) retail selling, (B) quarterly verification of retail sales (Form 1000), (C) attending any required training classes, and (D) completing and submitting the Annual Renewal and other applicable agreements with the company. Market America places great value on Distributors helping other Distributors, even when they are in different sales organizations. However, company policy does not permit a Distributor (or any third party) to operate the business of another Distributor or perform the essential functions of another Distributor.

 

 

 

 

Last Modified :09/16/2014 5:38:38 PM EDT