UnFranchise Owners are paid commissions for managing, training, supplying, supporting and motivating their organizations to produce retail sales volume and do not earn commission under the MPCP solely on production. UnFranchise Owners must maintain and provide continuous, substantive, supervisory and management functions to all UnFranchise Owners in their sales organization, regardless of whether their sales volume currently contributes to your commissions. Failure to carry out these responsibilities is grounds for corrective action by Market America, 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 as set forth in Chapter 14, Sec. 1 of this UnFranchise Manual.
(A) Management and training responsibilities: This includes educating and motivating their sales organization in subject matter regarding Market America products, effective sales techniques, the MPCP and compliance with policies and procedures contained in this UnFranchise Manual. Further, UnFranchise Owners must train and communicate with their sales organization to ensure that UnFranchise Owners within their organizations do not make improper product or income claims, engage in illegal or inappropriate conduct, including but not limited to: engaging, directly or indirectly, whether through use of social media or other means, in any action or conduct to intentionally disparage, demean or reflect negatively or upon the name, professional reputation, character or business of Market America or any other action that would otherwise violate the terms of the IUA&A or policies in this UnFranchise Manual.
(B) Supervisory responsibilities: Examples of supervisory and management functions include, but are not limited to: personal meetings, training sessions, resolving customer satisfaction issues, assisting in policy and procedure training, advising other UnFranchise Owners on the proper and ethical use of social media, protecting against unethical activities, reporting any suspected or actual policy violations, maintaining continuous contact and communication via telephone, voicemail, email, newsletters, written correspondence, social media, as well as accompanying them to Global Meeting, Training and Seminar System ( “GMTSS”) events and other Market America events and training programs.
UnFranchise Owners must provide evidence of their supervisory or management function to Market America upon request; Market America, in its sole discretion, may determine if these supervisory and management responsibilities have been and are currently being fulfilled satisfactorily. Market America provides all UnFranchise Owners with a series of Management Reports, for the sole purpose of demonstrating the execution of management responsibilities. All Management Reports and the information contained therein are confidential and proprietary and constitute trade secrets of Market America and should be treated as such, specifically, except as expressly permitted, UnFranchise Owners:
(1) Must not directly or indirectly disclose any information contained in any Management Reports or any other business documents to any third party;
(2) Must not use such information to compete with Market America;
(3) Must not encourage or solicit any customer(s) or UnFranchise Owner(s) to reduce or terminate their business relationship with Market America, including but not limited to using social media sites to solicit UnFranchise Owners; or
(4) Must not directly or indirectly disclose to any third party their REP ID and Password.
In addition to the specific Management and Supervisory functions detailed in (A) & (B) of this section, UnFranchise Owners also have the additional management responsibilities described below:
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 UnFranchise Manual contents (e.g., 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 IUA&A, 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 to 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 UnFranchise Levels: In addition to the 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 UnFranchise Manual. They also shall ensure that any UnFranchise Owner in their downline requiring an Executive Coordinator Certification Training is 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 global basis, implement the Global Meeting, Training and Seminar System within their downline, enforce the policies, procedures, rules and regulations in all lines of sponsorship through all means provided in the Market America UnFranchise Manual.
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.
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.
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.
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.
At all times during the conduct of their business, UnFranchise Owners shall safeguard and promote the reputation and image of the Company, its Owners, products, other Independent UnFranchise Owners, trademarks, trade names, or goodwill. No Independent UnFranchise Owner shall do anything which is or could be detrimental to the reputation or image of the Company, its Owners, products, trademarks, trade names or goodwill (whether or not during the conduct of their UnFranchise Business or upon separation from Market America). Detrimental action includes, but is not limited to the following:
(A) Products: Marketing products in a manner which is inconsistent with the public interest, is discourteous, deceptive, misleading, unethical or immoral.
(B) Advertisements: Advertising company products and/or its Marketing Plan in a manner or means that has not been specifically approved by the company.
(C) Representation: Making false or fraudulent representation about the Company, its Owners, products, the Management Performance Compensation Plan or income potentials.
(D) Defamation: Communicating false or disparaging statements which harm the reputation of the Company or its Owners. Methods of communication include, but are not limited to, verbal communication, posting videos or statements on the Internet or a website, media publications or articles, emails and text messages.
Failure to comply with these obligations may result in termination and/or possible legal action.
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 UnFranchise Manual.
(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-on-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.
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.
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.
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 SHOP.COM Global 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) SHOP.COM Global: SHOP.COM Global allows customers from anywhere to buy Market America branded products. Independent UnFranchise Owners who refer Market America branded products in other countries via SHOP.COM Global earn home country BV. In addition to BV, UnFranchise Owners will earn retail profit for sales made via SHOP.COM Global 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 SHOP.COM Global 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 SHOP.COM Global 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 UnFranchise 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.