Explains various types of definitions of terms and abbreviations used in this handbook in accordance with applicable regulations in Indonesia.
Business Development Center (BDC): Often referred to as an income center, a BDC is the placement in which BV is stored and to which commissions and bonuses are paid. A BDC is identified with an UnFranchise® ID number and extension number (e.g., -001, -002, -003, etc.). You may have multiple BDCs.
Placement: The term “placement” describes an UnFranchise Owner or BDC directly above or below a particular UnFranchise Owner or BDC in the Market Indonesia genealogy line; also referred to as “linkage.”
Independent UnFranchise Owner: An Independent UnFranchise Owner is a person who has signed the Independent UnFranchise Owner Application and Agreement and has been entered into the Market Indonesia computer database. This includes both Sales Representatives and UnFranchise Owners. Generally, the simplified term "UnFranchise Owner" is used.
Sales Representative: A Sales Representative is any Independent UnFranchise Owner who has not obtained UnFranchise Owner pricing and retail benefits by fulfilling the purchase requirements of an optimization package. Sales Representatives cannot participate in the Management Performance Compensation Plan (MPCP).
UnFranchise Owner: Also abbreviated as “UFO,” this is the short form of Independent UnFranchise Owner.
Sponsor: An active UnFranchise Owner who personally recruits new UnFranchise Owners, as indicated in the new Independent UnFranchise Owner Application and Agreement.
UnFranchise Cost: The amount of money that an UnFranchise Owner pays for products ordered from Market Indonesia.
Suggested Retail Price: The price a company suggests for retailing products and services. An UnFranchise Owner may charge a price lower or higher than this amount. This includes the tax amount, if any.
Business Volume (BV): The numeric value that is assigned to products and services and accumulates toward commission payouts.
Personal Business Volume (PBV): Business Volume placed in any of an UnFranchise Owner’s personal BDCs. This BV is used initially to qualify a BDC for quarterly BV requirements and to exercise the Monthly Accrual Option.
Group Business Volume (GBV): The collective Business Volume generated by all UnFranchise Owners within an individual’s downline organization. GBV accumulates toward commission payouts.
Qualified UnFranchise Owner: An UnFranchise Owner who has met all three of these criteria: (1) accumulated at least 200 PBV on one BDC, (2) paid the subscription fee and (3) is linked correctly.
Qualified Business Development Center: Any individual BDC that has accumulated at least 200 PBV, and the UnFranchise Owner has met all three criteria to be a qualified UnFranchise Owner.
Qualification Date (Q-date): The Friday of the week in which the UnFranchise Owner first meets all three criteria to become a qualified UnFranchise Owner. This Q-date is the date on which monthly and quarterly due dates are based for each UnFranchise Owner.
Monthly Accrual Option: A qualified UnFranchise Owner's ability to continue to accrue GBV each month by assigning a minimum PBV amount to their BDC-001 and subscribing to the UnFranchise Owner Management System approximately every 28 days (each monthly Q-date period). The amount of PBV required is determined by the UnFranchise Owner’s Level (UnFranchise Owner, Coordinator or Executive Coordinator and higher).
UnFranchise AutoShip: A standing order that ships automatically each month, paid for by bank draft or credit card. This order is designed to cover the PBV required to exercise the Monthly Accrual Option; therefore, the BV is automatically placed in the UnFranchise Owner’s BDC-001. The monthly subscription to the UnFranchise Management System to use the Monthly Accrual Option can also be ordered through UnFranchise AutoShip.
Bad Flush: The flushing (resetting to 0) of accrued GBV totals across all of an UnFranchise Owner's personal BDCs because the UnFranchise Owner did not submit the minimum monthly PBV and/or monthly subscription to the UnFranchise Management System to exercise the Monthly Accrual Option. Also referred to as “Red Flush.”
Active Independent UnFranchise Owner: An UnFranchise Owner who has met the minimum activity requirements: (1) submitted a valid quarterly UnFranchise Owner Sales Report (Form 1000), (2) correctly ordered and assigned the minimum quarterly PBV amount and (3) submitted a valid Annual Renewal Form. This includes both Sales Representatives and UnFranchise Owners.
Quarter: For qualified UnFranchise Owners, a period of every three months based on the qualified UnFranchise Owner's initial Q-date (also called the "three-Q-date period"). For Sales Representatives and unqualified UnFranchise Owners, a period of every three months based on the Sales Representative’s or unqualified UnFranchise Owner’s start date (the date the Application and Agreement was received and entered into the computer database by Market Indonesia) (also called the “three-Start-Date period”).
UnFranchise Owner Sales Report (Form 1000): Report showing evidence of at least two retail sales totaling Rp3,116,709.60. This form is due quarter for BDC-001 and only once for all other renewals with the same ID number.
Purge: The flushing (resetting to 0) of accrued GBV totals and PBV in all of an UnFranchise Owner’s personal BDCs due to the UnFranchise Owner failing to meet minimum activity requirements. This will cause the UnFranchise Owner to be considered "inactive" and will cause the BV amounts to be deducted from the GBV totals of qualified upline UnFranchise Owners.
Activate: To make a qualified BDC eligible to earn commission payments at the applicable GBV levels by personally sponsoring and maintaining at least one qualified UnFranchise Owner on the left of your qualified BDC and personally sponsoring and maintaining at least one qualified UnFranchise Owner on the right of your qualified BDC.
Override commission: The dollars earned by UnFranchise Owners on GBV generated by UnFranchise Owners in downline organizations.
Coordinator: An UnFranchise Owner who has earned their first commission check.
Good Flush: The flushing (resetting to 0) of accrued GBV totals in a particular BDC because the UnFranchise Owner accrued at least 5,000 GBV on the left and at least 5,000 GBV on the right of that BDC for a weekly commission cycle.
Executive Coordinator: An UnFranchise Owner who has accumulated a minimum of 5,000 GBV on both the left and right sides of a BDC and has earned that Rp9 million commission check or has already had their first “good flush” resulting in earned commission.
Management Bonus: In the same week that a respective BDC earns a commission for reaching the 5,000/5,000 GBV compensation criteria (had a "good flush"), both a BDC on the left side and a BDC on the right side each earn a commission check for reaching the 5,000/5,000 GBV compensation criteria. This bonus is an additional Rp9 million and is called a “triple flush.”
Master Coordinator: An Executive Coordinator who has earned a Management Bonus.