Chapter 10: Requirements For Becoming an UnFranchise Owner, and Membership Period

 

Explains the requirements for becoming an UnFranchise Owner, how to become an UnFranchise Owner, the validity period and the extension of the membership period in accordance with applicable regulations in Indonesia.

SECTION 1     REGISTRATION AND INDEPENDENT UNFRANCHISE OWNER AGREEMENT

UnFranchise Owner (UFO) is a designation or term used for business partners/members of PT Market America Indonesia who have registered and have the right to develop their business rights and receive commissions and bonuses for their network.

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

Market Indonesia, at its sole discretion, may change the MPCP, policies and procedures and the IUA&A provisions at any time. Such amendments will become effective immediately upon posting to UnFranchise.com. Your continuation as an UnFranchise Owner (UFO) or Sales Representative with Market Indonesia after modifications or changes to the policies and procedures and/or IUA&A conditions have been posted means you accept and agree to any changes that have been posted.

SECTION 2     ACCEPTANCE

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

NOTE: UnFranchise Owners can register with the help of a sponsor through the online registration process. No fax applications will be accepted. A 10-Working-Day Cooling-Off Period is given to new UnFranchise Owners from the date of recruitment to terminate the agreement with Market Indonesia. Upon such cancellation, the UFO will be refunded all payments paid to Market Indonesia to join as an UnFranchise Owner (including products in the Fast Start Kit).

SECTION 3     VALID IDENTITY

All Indonesia UnFranchise Owners are required to upload a copy of their Indonesian Resident Identity Card (KTP) or NIB number (for business entities) online within ten (10) calendar days from the Start Date of their application to avoid cancellation of the UnFranchise® business.

SECTION 4     PERMITTED AGE

All UnFranchise Owners must be at least eighteen (18) years of age to sell and distribute Market Indonesia products.

SECTION 5     NO PURCHASE REQUIREMENTS FOR SALES REPRESENTATIVES

A person is not required to pay any fees or buy Market Indonesia’s products, sales tools or Commission and Bonus Optimization Package to be a Market Indonesia Sales Representative.

  1. Rights: Sales Representatives can buy Market Indonesia products at the UnFranchise cost for retail sales and/or personal consumption.

  2. MPCP eligibility: Sales Representatives may NOT participate in the MPCP until they change their status to UnFranchise Owner (i.e., by filing a new subscription fee and the IUA&A, as well as filing the extension package every year thereafter).

  3. Restrictions: BV produced by Sales Representatives will be counted toward the Group Business Volume of qualified upline UnFranchise Owners. However, Sales Representatives will not count toward activating their sponsor's BDC. Because they haven't purchased a Commission and Bonus Optimization Package, Sales Representatives will not receive any benefits derived from the purchasing the optimization package.

SECTION 6     COMMISSION AND BONUS PACKAGES

UnFranchise Owner status is awarded to applicants who complete the IUA&A and purchase the E-Business Package Plus or E-Business Premium Plus with this application. The following will be provided:

  • Login access to their personal UnFranchise.com website (including a Getting Started Guide).
  • Market Indonesia UnFranchise Manual (contains business development information and policies, procedures, rules and regulations).
  • Market Indonesia Product Catalog.
  • Entry on the direct mailing list for all announcements and updates.

SECTION 7     REGISTRATION AND AGREEMENT EXTENSION

Membership is valid for one year and can be extended by purchasing the Extension Package, as long as the membership has not expired.

SECTION 8     STATUS STATEMENT

UnFranchise Owners must always use the word “independent” to describe their status (i.e., “Independent UnFranchise Owner”). If the UnFranchise Owner has a business telephone number, the telephone number must not be listed under the name Market Indonesia or in any other manner that does not reveal the independent contractor status of the UnFranchise Owner.

SECTION 9     INDEPENDENT UNFRANCHISE OWNER/ MARKET INDONESIA RELATIONSHIP

UnFranchise Owners are independent marketing contractors who are solely responsible for their own business practices and are not considered franchise purchasers.

  1. Relationship: The agreement between the Company and the UnFranchise Owner does not create an employer/employee relationship, agency, partnership or joint venture between the Company and the UnFranchise Owner.

  2. Authority: The UnFranchise Owner has no authority (express or implied) to bind the Company to any obligations with third parties. Each UnFranchise Owner will indemnify and hold the Company harmless from any claims, damages or liabilities arising from the UnFranchise Owner's business practices.

  3. Supervision/Direction: Each UnFranchise Owner is encouraged to set up their own working hours and determine their own sales methods, as long as they comply with the policies, procedures, rules and regulations in the Market Indonesian UnFranchise Manual and its amendments.

SECTION 10     INCOME TAX PAYMENT

All UnFranchise® Owners are responsible for taxes, including taxes on profits generated as an Independent UnFranchise Owner for the Company. Market Indonesia is required to deduct taxes from UnFranchise Owner commissions to pay the tax authorities as required by law.

  1. General recordkeeping rules: Keeping complete and accurate records of all business transactions and promotional activities is the responsibility of the Independent UnFranchise Owner.

  2. Retail sales recordkeeping: The UnFranchise Owner must maintain retail sales records, submit retail sales receipts for a minimum of Rp3 million in each three-Q-date or three-start-date period, and be able to provide all receipts required by the Company to qualify for commission.

SECTION 11     UNFRANCHISE® OWNER'S OPTION TO CANCEL AND TERMINATE

Either party may terminate the IUA&A for any reason at any time upon thirty (30) days prior written notice to the other party. However, Market Indonesia may terminate IUA&A with less than thirty (30) days written notice for serious violations of policies and procedures, in accordance with the Corrective Action Procedures described in Chapter 14, Section 1 of this UnFranchise Manual. Written correspondence must include the signature of the canceling UnFranchise Owner. If an UnFranchise Owner cancels their UnFranchise Business, or if the UnFranchise Business is terminated for any reason, they cannot submit another application to Market Indonesia until after 270 days from the last date of inactivity (last purge date). See the 270-Day Rule. These restrictions include submitting an application under a different name, a corporate name, a spouse's name or any other means that would result in the UnFranchise Owner having more than one UnFranchise Business at any time. The only exception to the 270-day rule is a business entity UnFranchise Business that has been canceled by Market Indonesia due to noncompliance with the business entity documentation policy (see Business Entity UnFranchise Business).