Explains the Company’s rights and obligations in accordance with the applicable regulations in Indonesia.
If an UnFranchise® Owner violates their Independent UnFranchise Owner Application and Agreement (IUA&A), including the policies and procedures set forth in this UnFranchise Manual, or if an UnFranchise Owner violates any other agreement with Market Indonesia, Market Indonesia may take the following corrective or remedial action.
Reasons for corrective action: Reasons for requesting a Corrective Action Procedure (CAP) include but are not limited to the following:
The Corrective Action Procedure may result in a range of sanctions against the UnFranchise Owner, including but not limited to additional training requirements, written warnings, withholding commissions, and suspension and termination of the membership relationship. The severity, frequency, number of violations, and impact on the company and the rights and businesses of other UnFranchise Owners determine the type of corrective action taken at the company's sole discretion. If the violation, in the company's opinion, is irreparable, is extensive and damaging, causes irreparable harm, or threatens the reputation and goodwill of the company or other UnFranchise Owners, it is grounds for immediate termination. If an UnFranchise Owner has been given a written warning from the company and still repeats the violation, that is grounds for immediate termination.
Corrective Action Procedure: The following procedure will apply to UnFranchise Owners subject to corrective action:
When evidence of a violation becomes known to the Market Indonesia Legal Council, the Legal Council will notify the UnFranchise Owner (UFO) via certified mail, with a return receipt requested or express courier service requiring a signature for delivery. A notification will be sent to the UFO's last known address on file, informing them that they have allegedly engaged in inappropriate behavior and must submit a response explaining the situation to the Corrective Action Board (CAB). If the letter cannot be delivered, at its sole discretion, Market Indonesia may also try to send a notification via email.
The UnFranchise Owner must submit a written response to Market Indonesia within twenty (20) days from the postmark date of the Legal Council's letter (including weekends and holidays; if the 20th day falls on a weekend or holiday, the response is due on the following working day). If a written response is not received within the 20-day period, the UnFranchise Owner's contract may be terminated automatically.
Upon receipt of a response within the 20-day period, the CAB will review the response within fifteen (15) business days of receipt and determine what action should be implemented. In unusual circumstances, the CAB may extend the decision period with appropriate notification to the UnFranchise Owner. The Corrective Action Board will consist of at least two senior executives from Market Indonesia, one representative from the company's Legal Department and one representative from the company's Compliance Department.
The Corrective Action Board will notify the UnFranchise Owner of its decision via certified mail with a return receipt requested or via express courier service with a signature required for delivery. The CAB's decision will take effect immediately.
If the UnFranchise Owner disagrees with the decision rendered by the CAB, they may appeal the decision to the Advisory Board, which includes representatives from the Market Indonesia UnFranchise Owner Advisory Council. The UnFranchise Owner can request an appeal in one of two ways: (a) by requesting an appeal hearing at Market Indonesia's head office in Jakarta, Indonesia, or by telephone or (b) by submitting documentation for a written appeal. If the UnFranchise Owner submits a written appeal, all supporting documentation must accompany the appeal. NOTE: All documents submitted in a written appeal must be notarized, certified, or properly verified.
Market Indonesia must receive all appeal requests within fifteen (15) days from the date of the CAB decision letter (including weekends and holidays; if the fifteenth day falls on a weekend or holiday, the appeal must be received on the following working day). If the UnFranchise Owner fails to appeal within fifteen (15) days, the Corrective Action Board's decision will be final.
The Advisory Board will review the appeal within thirty (30) days of receipt of the appeal request letter. If the UnFranchise Owner requests an appeal hearing, the Advisory Board will attempt to schedule a hearing at a convenient time for the UnFranchise Owner. However, the Advisory Board can schedule a hearing any time during the 30-day period. In unusual circumstances, the Board may extend its decision time with appropriate notification to the UnFranchise Owner. Please note that if the UnFranchise Owner exercises their appeal rights, any sanctions issued by the CAB will remain in effect until the appeal process is complete. Therefore, the UnFranchise Owner remains subject to any sanctions that have been determined by the CAB even though the period of such sanctions has expired before the Advisory Board provides a statement regarding the final decision of the appeal.
The Advisory Board will hold a hearing on the scheduled date, render a final decision and send a notification to the UnFranchise Owner within five days of the hearing date.
Termination: If an UnFranchise Owner commits a serious violation of the terms of the IUA&A or the policies, procedures, rules and regulations contained in the UnFranchise Manual, then the company may, at its sole discretion, terminate the UnFranchise Owner's contract.
An UnFranchise Owner whose contract is terminated will lose all rights, privileges and benefits of a Market Indonesia UnFranchise Owner.
Market Indonesia will notify the UnFranchise Owner of termination via certified mail, with a return receipt requested, at the UnFranchise Owner's last known address shown in company records.
Upon receipt of the termination notice, the UnFranchise Owner may file an appeal before the Advisory Board, following the procedural steps outlined under Corrective Action Procedures.
Arbitration: If the UnFranchise Owner disagrees with the Advisory Board's decision, the only recourse for the UnFranchise Owner is to request arbitration administered by the Indonesian Arbitration Board, as regulated in the Independent UnFranchise Application and Owner Agreement. UnFranchise Owners have one (1) year from the date of the Advisory Board's decision to submit to arbitration. If an UnFranchise Owner fails to appeal within one (1) year from the date of the Advisory Board's decision, they waive their right to request arbitration, and the Advisory Board's decision will be final.
The company never waives its right to require compliance with stated policies, procedures, rules and regulations or with applicable laws governing the conduct of business.
Authorities: This policy applies in all cases, whether express or implied, unless a company official who has the authority to bind the company in a contractual agreement states in writing that the company waives a provision or provisions. Verbal communication is not sufficient to authorize noncompliance.
Permission: If the company authorizes policy exceptions on any occasion, that authorization does not cover future noncompliance.
Scope: This provision relates to the concept of “waiver.” The parties agree that the company does not waive its rights under any circumstances other than in the case of the written authorization stated above.
The company expressly reserves the right to add or change policies, procedures, rules, regulations, product availability and formulation, UnFranchise product costs and the Management Performance Compensation Plan (MPCP) after approval by the Ministry of Trade (MOT) or competent institution in Indonesia. Upon notification by mail to the most recent address listed in company records or notification via the UnFranchise Owner UnFranchise.com account, UnFranchise Owner Magazine, email, voicemail or other adequate methods, such amendments or changes are automatically included as part of the IUA&A between the company and the UnFranchise Owner.
The company reserves the right to approve or reject an UnFranchise Owner's change of registered business name, formation of partnerships, corporations, other business organizations and trusts for tax, estate planning and other liability purposes. If the company agrees to the change, the UnFranchise Owner must provide a list of the names of the heads of the relevant institutions with their Social Security numbers and signatures.
Termination will result in the loss of commission rights for the UnFranchise Owner's BDCs.
Effective period: The effective period of termination is retroactive to the beginning of the week in which the termination is received in writing by the company.
Commission payments: Commission payments to terminated UnFranchise Owners will be made only for business completed during the last full week prior to the effective date of termination.
Representation: A terminated UnFranchise Owner shall no longer declare themself as an Independent UnFranchise Owner of Market Indonesia.
Market Indonesia and its UnFranchise Owners (collectively, the “Sales Force”) have invested a lot of time, effort, energy and money to train and build this Sales Force. Therefore, protecting Market Indonesia and its Sales Force from unfair competition is very important. UnFranchise Owners are prohibited from in any way, directly or indirectly, via social media or by any other means during the term of this Agreement or thereafter, making any statement (oral or written, fictional or nonfictional) or taking any action which in any way disparages or defames Market Indonesia, its parent, subsidiary or affiliate companies (collectively, “Related Companies”) or their respective officers, directors, partners, principals, employees, third-party vendors, consultants, agents, attorneys or advisors, or in any way, directly or indirectly, causes or encourages others to make such statements or take such actions. The provisions contained in this section are reasonable and necessary to protect the legitimate interests of Market Indonesia, its Sales Force and Related Companies. Violation of the provisions of this section will result in the initiation of a Corrective Action Procedure, possible termination of the UnFranchise Owner's contract or other legal consequences.
Cross-group sponsoring and selling will damage distribution channels and threaten the integrity of the marketing plan and, therefore, are unethical and strictly prohibited. Without this prohibition, there would be no incentive for UnFranchise Owners to recruit, train and manage their organizations. Violation of the Cross-Group Sponsoring and Selling Policy will result in the initiation of a Corrective Action Procedure, which may result in, among other things, the restructuring of the sales network, transfer or adjustment of the sales volume involved, financial restitution or termination of the UnFranchise Owner’s IUA&A.
Cross-group sponsoring is recruiting another UnFranchise Owner (UFO) from a different Market Indonesia organization or line of sponsorship or moving a downline UFO from one placement to another in their own organization without complying with the sponsorship transfer policies and procedures set forth in the UnFranchise Manual and, thereby depriving the original sponsor's line of the volume of credit they would otherwise receive. It also includes recruiting UFOs from other direct sales, network marketing, affiliate marketing or similar business ventures or opportunities (collectively, “Competing Companies”). Cross-group sponsoring of any type is strictly prohibited.
Use of Market Indonesia's Proprietary and Confidential Information or relationships developed through Market Indonesia to divert a UFO’s time, effort, volume, production or activities under the MPCP to another UnFranchise Owner or sponsorship line for the benefit of another person or entity by use of any device, mechanism, agreement or arrangement, including but not limited to the use of trade names, DBAs, pseudonyms, federal identification numbers, fake social security or social insurance numbers, or fake BDCs (collectively, “Alter Egos”) is unethical and strictly prohibited.
Cross-group selling is the solicitation of sales from other sponsor lines. Primary examples include:
Selling Market Indonesia products to Market Indonesia UnFranchise Owners, other than one’s personally sponsored UnFranchise Owners, without appropriate sales volume or BV credit.
(2) Selling products or sales aids from Competing Companies to Market Indonesia UnFranchise Owners, other than one’s personally sponsored UnFranchise Owners.
Efforts to avoid: Using Alter Egos is unethical and strictly prohibited because doing so undermines the UnFranchise Owner's Business Plan and deprives other UnFranchise Owners (UFOs) of the volume of business they would otherwise receive. Without this prohibition, UFOs would not be incentivized to recruit, train and manage their organizations. Violating this section will result in the initiation of a Corrective Action Procedure, which may result without limitation in network and lineage restructuring, moving individual UFOs or adjusting the sales volume involved to protect the marketing plan’s integrity.
Enforcement responsibilities: All Coordinators and higher UnFranchise Levels within the sponsor line are responsible for enforcing these rules by reporting any evidence of such activity to the Market Indonesia Compliance Department or filing a complaint. Failure to report such activity is grounds for corrective action by Market Indonesia.
UnFranchise Owners shall not, directly or indirectly, promote or market any competitive company or sell their respective products and programs to any UnFranchise Owner or customer. This provision does not limit the UnFranchise Owner's ability to solicit individuals not associated with Market Indonesia in any way. UnFranchise Owners are prohibited from using Proprietary and Confidential Information to directly or indirectly offer or promote non-Market Indonesia products or business opportunities to UnFranchise Owners or customers, regardless of whether the business opportunity or product is related to a competitor company. Additionally, because Competing Companies conduct business throughout the world, often through a network of independent contractors spread throughout the United States and internationally, via the internet and telephone, these provisions apply in all countries where Market America conducts business while the restrictions are in effect. Violations of this policy are very serious and will result in corrective action by Market Indonesia, including possible termination of the UnFranchise Owner's contract and/or the initiation of legal proceedings.
UnFranchise Owners who have complaints or input regarding business practices or behavior related to their Market Indonesia business must first report them to their upline leadership, who must review the issue and try to resolve it in the field. If the problem cannot be resolved in the field, the company will review the facts and attempt to resolve the problem. If not resolved satisfactorily, it can be referred to the Dispute Resolution Board (DRB) for final review and determination. The UnFranchise Owner agrees to submit any complaints, objections or claims against an UnFranchise Owner or the company to the company and/or the DRB for resolution before contacting any regulatory body or taking legal action.
DRB process: The Dispute Resolution Board is the final appeal process for company rulings or decisions regarding policies, procedures, rules and regulations. The DRB only reviews the facts and enforces company policies and procedures. The DRB does not set or change policies or make exceptions to rules and regulations. It serves to interpret policies, procedures, rules and regulations where there is no precedent or where unique mitigating circumstances are encountered.
A formal appeal to the DRB requires completion and submission of the DRB Submission Form (located in your UnFranchise.com account), a notarized statement (affidavit), all documentation, evidence and a nonrefundable filing fee of Rp750 thousand for the review process. The filing fee is nonrefundable regardless of the DRB's final decision.
The DRB reviews all appeals in a timely manner.
Commission claim cut-offs and adjustments will not apply, provided the DRB process is initiated within forty-five (45) days of the respective commission week.
(4) If the UnFranchise Owner disagrees with the DRB's decision, the UnFranchise Owner's sole recourse is to request arbitration within ninety (90) days of the date of the DRB's decision. This arbitration will be administered by the American Arbitration Association, as set forth in the IUA&A.
A "starter kit" provides information about products and literature necessary to start a business. The company reserves the right to replace an item with one of equal or greater Business Volume (BV), value or cost at any time with notice. UnFranchise Owners should not expect the exact same items in every kit.
The company cannot guarantee the absolute accuracy of the information on the UFMS until the close of weekly commissions, which occurs two weeks after the last week of ongoing renewals, adjustments and reconciliations.
Adjustment factor:Many factors can influence the volume numbers displayed in the UFMS, such as incorrect placements, data processing errors caught in reconciliation, check rejections, refund requests, volume deletion, volume purges, etc.
The numbers are not final until reconciled and posted on Friday, two weeks after the week-ending commission cycle.
Commission will be paid according to the reconciled volume.
Limitations: The information provided by the UFMS will be used as a management tool, providing the UnFranchise Owner with an estimate of BDC Group Business Volume.
If a group of UnFranchise Owners in the same line of sponsorship terminate (end) as Market Indonesia Independent UnFranchise Owners within a 90-day period, the company can't reverse unearned commissions by removing BV. Usually, there is a competitive motive involved when events like this occur. Often, UnFranchise Owners who earn commissions on their downline group's BV leave the business within the same timeframe as their downline UnFranchise Owners who are leaving the business and requesting refunds. It is not unusual for a terminating upline UnFranchise Owner to encourage or instruct a downline UnFranchise Owner to leave the business or request a refund simultaneously. Regardless of the reason, the company must reverse unearned commissions to make a fair distribution of refunds to the group of UnFranchise Owners leaving the business. With the rights under the IUA&A to earn commissions, accrue GBV and sponsor other individuals as UnFranchise Owners, there are certain contractual obligations, responsibilities and liabilities.
Seventy percent rule: Each Executive Coordinator is contractually obligated to ensure that 70% of all products purchased are sold to end consumers.
Breach of contract: In cases where groups of UnFranchise Owners in the same sponsorship line are leaving the business and the refund dollar amounts requested exceed 30% of product orders, sales, volume or deposits, there is a clear breach of contract by the UnFranchise Owners receiving the commissions, or there was manipulation of the MPCP with false representation on the part of participants requesting refunds as a group.
Executive Coordinator's responsibility: Regardless of shipping issues, back orders, or disputes, the Executive Coordinator remaining in the business received the commissions that must now be reversed.
Buyback guarantee: Market Indonesia advances commissions to participants on wholesale purchases intended for resale or consumption based on protective provisions such as buyback guarantees, refund policies, retail terms and performance requirements with which participants must comply.
Basis for commissions: The company pays commissions based on UnFranchise Owners’ and Executive Coordinators’ contractual obligations to comply with Market Indonesia policies, procedures, rules and regulations. These provisions are clearly stated repeatedly in all Market Indonesia literature and communications.
The same consumer protection and anti-pyramid laws apply to UnFranchise Owners as well as Market Indonesia.
When a group refund is requested, the company must implement the contractual provisions entered into by all parties to protect against receipt of commission for products not delivered to the end consumer.
Refund and return process: The company reserves the right to handle refunds or product returns for a group of UnFranchise Owners leaving the business within the same 90-day period or jointly with each other in the following manner:
The company will hold all returns and refunds for sixty (60) days until all adjustments are made.
The company can identify who is involved and refund any unearned commissions by deleting the BV and going through the Commission Reversal Process.
The company may seek enforcement of the 70 Percent Rule on Executive Coordinators who violate policies, procedures, rules, regulations and anti-pyramid laws.
The company may enforce a payment schedule that releases funds to the appropriate parties in payments until all unearned commissions are reversed. If an Executive Coordinator accepts commissions and is contractually responsible for compliance within their organization, they must return any unearned commissions to their downline group.
The company may take enforcement action against any individual who refuses to return or refund unearned commissions or refuses to buy back products.
If the company is unable to collect unearned commissions from the Executive Coordinator involved, and if the terminating UnFranchise Owners and the Executive Coordinator fail to comply with the requirements under the marketing plan and policies and procedures, the company will then refund its portion of the debt and assign the collection rights of unearned by the Executive Coordinator to participants requesting a refund. The company may, at its sole discretion, provide legal assistance to parties receiving the assignment to collect from the Executive Coordinator.
No claims submitted more than 45 days from the end of the commission week will be accepted. The absolute deadline for commission claims for adjustments is forty-five (45) days after the Friday of the close of the commission week. The company will not adjust commissions later than forty-five (45) days. The 45-day period allows three to four weeks from when the commission check is cashed to contact or notify the company and file a claim. If an UnFranchise Owner believes they should have received a check and did not, they must notify the company before the end of the 45-day period. No exceptions will be made.