Chapter 12: Marketing Plan and Promotional Activities

Explains the rules for an UnFranchise Owners marketing and promotional activities, what is permitted and what is prohibited in accordance with applicable regulations in Indonesia.

SECTION 1     MPCP MANAGEMENT/ SUPERVISORY RESPONSIBILITIES

UnFranchise® Owners are paid a commission to manage, train, supply, support and motivate their organization to generate retail sales volume and do not earn a commission under the MPCP just for production. UnFranchise Owners must maintain and provide ongoing, substantive, supervisory and management functions to all UnFranchise Owners within their sales organization, regardless of whether their current sales volume contributes to your commissions. Failure to carry out these responsibilities is grounds for corrective action by Market Indonesia, including but not limited to confiscation or return of commission checks, additional training requirements and, in the case of egregious failure to perform duties, termination of the UnFranchise Owner's contract as provided in Chapter 14, Section 1 of this UnFranchise Manual.

  1. Management and training responsibilities: This includes educating and motivating their sales organization in subject matter regarding Market Indonesia products, effective sales techniques, the MPCP and compliance with the policies and procedures contained in this UnFranchise Manual. Furthermore, UnFranchise Owners must train and communicate with their sales organizations to ensure that UnFranchise Owners within their organizations do not make inappropriate product or revenue claims or engage in illegal or inappropriate conduct, including but not limited to, engaging directly or indirectly, either through the use of social media or other means, in any action or behavior to intentionally disparage, demean or reflect negatively on the name, professional reputation, character or business of Market Indonesia or any other action that violates the provisions of the IUA&A or the policies in this UnFranchise Manual.

  2. Supervisory responsibilities: Examples of oversight and management functions include but are not limited to conducting personal meetings and training sessions, resolving customer satisfaction issues, assisting in policy and procedure training, advising other UnFranchise Owners on appropriate 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 and social media, and accompanying UFOs to Global Meeting Training and Seminar System (GMTSS) events and other events and training programs in Indonesia.

    Upon request, UnFranchise Owners must provide proof of their supervisory and management functions to Market Indonesia. Market Indonesia, in its sole discretion, may determine whether these supervisory and management responsibilities have been and are being fulfilled satisfactorily. Market Indonesia provides a series of management reports to the UnFranchise Owner for the sole purpose of demonstrating the implementation of management responsibilities. All management reports and information contained therein are confidential and constitute the property and trade secrets of Market Indonesia. Specifically, unless expressly permitted, an UnFranchise Owner:

    1. Shall not directly or indirectly disclose any information contained in management reports or other business documents to any third party.

    2. May not use this information to compete with the Market Indonesia.

    3. May not encourage or ask customers or UnFranchise Owners to reduce or end their business relationships with Market Indonesia, including but not limited to the use of social media sites requested by UnFranchise Owners.

    4. May 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) and (B) of this section, the UnFranchise Owner also has the additional management responsibilities described below:

    UnFranchise Owner: UnFranchise Owners have the ultimate responsibility for ensuring the level of success they desire. They have a responsibility to know the contents of the Market Indonesia UnFranchise Manual (for example, policies, procedures, rules and regulations).

    Sponsor: Sponsors have a specific responsibility to comply with all sponsorship-related provisions described in the IUA&A Terms and Conditions, as well as other applicable policies and procedures.

    Coordinator: In addition to the responsibilities specified in the “Sponsor” section above, Coordinators must train and work with all UnFranchise® Owners in their organization up to the next active Coordinator. Additionally, they must supervise the downline Coordinators and ensure these Coordinators support and train all UnFranchise Owners in their organization. A Coordinator is responsible for presenting the marketing plan to new UnFranchise Owners.

    Executive Coordinator: In addition to the responsibilities specified in the “Sponsor” section above, the Executive Coordinator is contractually bound (pursuant to, the Executive Coordinator Acknowledgment and Agreement) to enforce policies, procedures, buyback guarantees, merchandise return policies, and rules and regulations to the level of the next Executive Coordinator in their downline organization. If the next downline Executive Coordinator does not fulfill these responsibilities, the upline Executive Coordinator must notify the upline leadership and fulfill the responsibilities of the non-compliant downline Executive Coordinator until another downline Executive Coordinator is developed in the organization who accepts and fulfills these responsibilities.

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

    Professional Coordinator and higher UnFranchise Levels: In addition to the responsibilities specified above, these managers must ensure that all UnFranchise Owners in their downline organizations are properly supported and trained through ongoing communication and supervisory functions for downline leadership.

    Certified Trainer: Certified Trainers must fulfill all responsibilities in accordance with the policies and procedures in the Market Indonesia UnFranchise Manual. They must also ensure that every UnFranchise Owner who is in their downline who and needs Executive Coordinator Certification Training is actually given that training, including if the Certified Trainer has to do it in a remote location.

    Advisory Council Members: Advisory Council Members will arrange meetings in new growth areas where they have downline UnFranchise Owners ; resolve disputes between lines of sponsorship; work with other Advisory Council Members to provide training globally; implement the Global Meeting, Training and Seminar System in their downline; and enforce policies, procedures, rules and regulations in all sponsorship lines through all means provided by the Market Indonesia UnFranchise Manual.

SECTION 2     SPONSORING

UnFranchise Owners are compensated only for personal sales production from their sales and distribution organizations in their downline in accordance with Company policies, procedures, rules and regulations, and managerial and supervisory roles for their downline organizations. UnFranchise Owners are not compensated for sponsoring/recruiting new UnFranchise Owners.

SECTION 3     RETAIL SALES REQUIREMENTS

To complete acceptance as an active and qualified UnFranchise Owner, the UnFranchise Owner must have a minimum of two (2) retail sales totaling Rp3 million and submit to Market Indonesia Form 1000 accompanied by at least two retail sales receipts proving the value of Rp3 million in retail sales to end consumers within the three-Q-date period of BDC qualification. Each UnFranchise Owner must personally make retail sales listed on Form 1000 to their own customers, and each UnFranchise Owner must personally complete and submit Form 1000 to Market Indonesia.

SECTION 4     PERSONAL CONSUMPTION OF PRODUCTS

Market Indonesia’s MPCP is based on retail sales to end consumers. The company acknowledges that UnFranchise Owners may wish to purchase products in reasonable quantities for their own consumption and personal use.

SECTION 5     SPONSOR'S RIGHTS AND OBLIGATIONS

All UnFranchise® Owners have the right to sponsor new UnFranchise Owners into their downline organizations, provided they have generated Rp3 million in the form of retail sales and submit documentation of such sales to the company within 30 days from the date of sponsorship.

  1. New UnFranchise Owner: Every new UnFranchise Owner has the absolute right to choose their own sponsor.

  2. Sponsorship disputes: If two UnFranchise Owners claim to be the sponsor of a new UnFranchise Owner, the company may, in its sole discretion, consider the first executed and received Application and Agreement to be superior. The company also reserves the right to review each situation and adjust sponsorship rights accordingly.

    1. As a general rule of thumb, it is good practice to consider the first UnFranchise Owner who works seriously with a prospect to have a claim to being the first sponsor. In this case, the basic principle of reasonable consideration will be used.

    2. An UnFranchise Owner who sponsors another UnFranchise Owner must fulfill the obligations of a bona fide supervisor in the sale and distribution of products to end consumers and in the training of the sponsored UnFranchise Owner. UnFranchise Owners must actively engage in ongoing contact, communication and management activities with their organization. Failure to fulfill these obligations may result in loss of sponsorship rights and/or termination of the relationship at the company's sole discretion.

  3. Absence of sponsorship: If an UnFranchise Owner does not have a sponsor entered into the computer database due to having the same address, failed to enter the sponsor on the original application, etc., and the UnFranchise Owner wishes to enter a sponsor into the computer database, they must submit a letter of request, addressed to the Compliance Department, explaining the situation. The letter must be signed by the UnFranchise Owner and the proposed sponsor. The UnFranchise Owner should allow the Compliance Department at least two (2) weeks to notify them regarding sponsorship approval.

SECTION 6     UNETHICAL ACTIVITIES

At all times while conducting their business, UnFranchise Owners must maintain and promote the reputation and image of the company, its owners, products, other Independent UnFranchise Owners, trademarks, trade names and goodwill. No Independent UnFranchise Owner should do anything that is detrimental to or could damage the reputation or image of the company, its owners, products, trademarks, trade names, or goodwill (either during the operation of their UnFranchise Business or after separating from Market Indonesia). Adverse actions include but are not limited to the following:

  1. Product: Marketing products in a way that is not in the public interest or is disrespectful, deceptive, misleading, unethical or immoral.

  2. Advertisements: Advertising the company's products and/or its marketing plan in ways or means that have not been specifically approved by the company.

  3. Representation: Making false representations or committing fraud about the company, its owners, the products, the MPCP or potential income.

  4. Defamation: Communicating false or disparaging statements that damage the reputation of the company or its owners. Communication methods include but are not limited to verbal communications, posting videos or statements on the internet or websites, media publications or articles, emails and text messages.

Failure to comply with these obligations may result in termination and/or the possible imposition of legal action.

SECTION 7     REVENUE CLAIMS

UnFranchise Owners can only use income claims published by Market Indonesia. No unauthorized claims are permitted for recruitment or other purposes. The use of an unauthorized income claim is grounds for initiation of the Corrective Action Procedure by the company. Unauthorized income claims are not permitted, even if the Market Indonesia name is not used in the advertisement or claim. Canadian UnFranchise Owners must make fair, reasonable and timely disclosures of information related to compensation if they submit an income claim. Such disclosure will be deemed sufficient only if the UnFranchise® Owner uses the revenue disclosure information provided by Market Indonesia in this UnFranchise Manual.

SECTION 8     COMPENSATION PLAN PRESENTATION

  1. Members of the Speakers Bureau (Category 1 or Category 2): Members of the Speakers Bureau may present the Management Performance Compensation Plan (MPCP) segment at UnFranchise Business Presentations (UBPs).

  2. Certified Executive Coordinator: Certified Executive Coordinators can present the Management Performance Compensation Plan in settings where no fees are charged, such as in-person meetings.

  3. UnFranchise Owner: UnFranchise Owners may conduct “one-on-one” or private presentations but must follow the format provided by the company in official company-issued literature and audio/video materials.

  4. Misrepresentation: Any misrepresentation of the marketing plan or Management Performance Compensation Plan will be the basis for termination and possible imposition of legal action.

SECTION 9     GOVERNMENT SUPPORT

The Indonesian government does not provide approval or support for direct sales programs or other types of business activities. Therefore, UnFranchise Owners may not state or imply, directly or indirectly, that Market Indonesia and its programs have been “approved” or “endorsed” by any government agency.

SECTION 10     MEDIA REQUESTS

Any inquiries from any media (television, radio, print, etc.) should be immediately referred to the company's public relations department. This policy is to ensure accuracy and a consistent public image.

SECTION 11     INTERNATIONAL DEVELOPMENT

Market Indonesia will continue to expand internationally. However, Market Indonesia will not allow future access to potential new markets to be hindered or denied by some premature, unauthorized and ill-informed UnFranchise Owners.

  1. Restrictions: To prevent abuse, the following restrictions must be strictly enforced:

    1. UnFranchise Owners may not engage in unauthorized activities in any country/territory that has not been opened before being authorized by Market Indonesia.

    2. UnFranchise Owners may only conduct meetings to explain marketing plans and engage in any type of recruiting activities in countries where Market Indonesia or its affiliated companies are open for business or in countries registered under the Emerging Market Program (EMP). NOTE: Please visit your UnFranchise.com account to learn more about EMP countries.

    3. UnFranchise Owners are prohibited from exporting Market Indonesia-branded products or literature.

    4. UnFranchise Owners can only promote or refer Market Indonesia-branded products to anyone in the country/territory of Indonesia.

  2. Emerging Markets Program: The EMP provides a simplified version of the Market Indonesia business model, allowing companies to assess the potential expansion to a full Market Country in the future. Independent UnFranchise Owners can invite residents of EMP countries to participate in their organization with a simplified version of the Market Indonesia marketing plan.

  3. SHOP.COM Global: SHOP.COM Global allows customers from anywhere to purchase Market Indonesia-branded products. Independent UnFranchise Owners who recommend Market Indonesia-branded products in other countries through SHOP.COM Global get BV for their home region. In addition to BV, UnFranchise Owners will earn retail profits for sales made through SHOP.COM Global for delivery in countries where Market Indonesia and/or its affiliates do not have domestic operations. No retail profits will be earned from sales made through SHOP.COM Global for delivery to countries where Market Indonesia and/or its affiliated companies operate, specifically Australia, Taiwan, Singapore, Hong Kong, Spain and the United Kingdom. Products purchased from SHOP.COM Global are for personal consumption only and not for retail sale. NOTE: Other restrictions may apply.

  4. Corrective action: Market Indonesia will use the corrective action procedures set forth in the UnFranchise Manual to discipline UnFranchise Owners who violate Market Indonesia's pre-launch activity restrictions. These corrective action procedures include suspension and/or termination of violating UnFranchise Owners.

  5. Notice to UnFranchise Owner: Market Indonesia will notify UnFranchise Owners of plans to open international markets. Meanwhile, UnFranchise Owners should not take premature steps into markets that are not currently open, as this could jeopardize international expansion for all UnFranchise Owners in the future. If the UnFranchise Owner has an interest in a particular international market for possible expansion, they may submit such information in writing to Market Indonesia’s legal department.