Explains the general rules for an UnFranchise Owner to run a business in Market Indonesia in accordance with the regulations in force in Indonesia.
Every Business Development Center (BDC) has two sides. Each side is a sales and distribution organization or network structure in the Market Indonesia UnFranchise® Business Development System.
Business Development Center: A Business Development Center is an operational establishment set up within Market Indonesia’s computerized organization tracking system. Each organization is based on the identification number assigned to the Independent UnFranchise Owner and the BDC three-digit extension number (e.g., 001, 002, 003, etc.).
Additional Business Development Centers: Additional BDCs are established on the left or right side of the previously established BDC.
To participate in Market Indonesia’s MPCP, individuals (with the assistance of their sponsor) must complete and submit the Independent UnFranchise Owner Application and Agreement (IUA&A). The IUA&A can be submitted to Market Indonesia directly via walk-in or by mail (faxes are not accepted) to be entered into the Company's computer database or by completing the registration process online so that a BDC can be assigned to them. Note: Sponsors must register a new UnFranchise Owner either by mail or online, but not both at the same time because this could invalidate the new UnFranchise Owner's entry process into the Market Indonesia computer database.
Sales Representative: Individuals who do not submit the subscription fee enter Market Indonesia as Sales Representatives and cannot participate in the Management Performance Compensation Plan (MPCP) for the purposes of obtaining commissions and management bonuses. Sales Representatives can start participating in the MPCP at a later time if they buy the optimal package of bonuses and commissions each month or by submitting a new application (please check the appropriate box under the “Entry Classification” category on the application).
UnFranchise Owner: One must select UnFranchise Owner in the “Entry Classification” category and meet the package optimization requirements of commissions and bonuses to participate in the MPCP and earn commissions and management bonuses.
An UnFranchise Owner must have attended a Market Indonesia-sponsored New UnFranchise Owner Training (NUOT) within the “NUOT Grace Period” in order to: (1) count as being sponsored and (2) obtain the sponsorship rights toward and for activation purposes in the MPCP.
If an UnFranchise Owner does not complete the NUOT within the “NUOT Grace Period,” the UnFranchise Owner’s sponsor will lose their sponsorship rights for this UnFranchise Owner. The sponsorship rights for this UnFranchise Owner of the UnFranchise Owner’s sponsor may be reactivated once this UnFranchise Owner completes the NUOT at a later date. The sponsorship takes effect on the reactivation date.
New UnFranchise Owners may sponsor other new UnFranchise Owners during their “NUOT Grace Period.” This “NUOT Grace Period” shall be defined as 28 calendar days after the Friday following the payment date of the joining fee and the subscription fee for the first year. If the sponsoring new UnFranchise Owner does not complete the corporate-sponsored NUOT within the 28 days allowed, then sponsorship rights toward/for activation purposes and rights to commission earned will be forever forfeited.
A person can only be involved in one Market Indonesia UnFranchise Business. If a person is already involved in an UnFranchise Business as an owner, officer, director, shareholder, partner, member, manager, beneficiary, trustee or spouse of an UnFranchise Owner, or if someone plays an operational role in an UnFranchise Business, then that person may not be involved in any such capacity for another UnFranchise® Business, regardless of whether their name appears in the UnFranchise Business’s official documents or is associated with the UnFranchise Business in any formal way. The use of any device, mechanism or arrangement, such as a trade name, pseudonym, name of a spouse or family member, identification number, fake Social Security number or fake Business Development Center (collectively, “Alter Ego”), is unethical and strictly prohibited.
Business Development Centers of new UnFranchise Owners are placed at the discretion of the sponsoring UnFranchise Owner. Existing UnFranchise Owners where the new BDCs are placed must be notified of their placement within their organization. The placement of a new UnFranchise Owner BDC is determined in the Independent UnFranchise Owner Application and Agreement (IUA&A) sent by mail or during the online registration process by the new UnFranchise Owner’s sponsor.
New Business Development Center: New BDCs can only be established at available locations not previously occupied or linked. All Sales Representative and UnFranchise Owners start with three (3) BDCs when establishing their UnFranchise Businesses. An UnFranchise Owner will also start with one (1) International Reentry Center (IRC). Please see the section titled Global Unification for details.
Incorrect Placement: Incorrect placement (attempting to place a new UnFranchise Owner in a position already filled as a downline), incomplete placement information or failure to designate placement information in the IUA&A for a newly sponsored UnFranchise Owner will result in an “unlinked” BDC. Any BDC linked to an unlinked BDC will also be unlinked.
Unlinked BDCs can be identified by searching the "Leg" column of the UnFranchise Owner Network Report in the UnFranchise Owner Management System. If there is no "L" or "R" in the UnFranchise Owner’s "Leg" column for BDC-001, the UnFranchise Owner BDC is not linked.
Corrected BDC links must be reported to Data Processing using the Placement or Link Correction Form via mail as soon as possible. Only sponsors or non-linked UnFranchise Owners may sign correction forms.
Qualification of a BDC will enable the accruing of Group Business Volume (GBV) generated by UnFranchise Owners and Sales Representatives in the respective BDC downline. The accumulated GBV will be used to earn commissions and management bonuses for eligible BDCs.
Personal Business Volume creation: Both UnFranchise Owners and Sales Representatives create Personal Business Volume (PBV) by ordering products at UnFranchise Owner Cost (UC) for retail sale to end consumers and personal consumption.
Qualification: A UnFranchise Owner’s BDC will be considered “qualified” in Market Indonesia’s MPCP after fulfilling three criteria: 1) accumulating 200 PBV credits for product orders placed with each BDC; 2) being linked correctly; and 3) meeting the Commission and Bonus Optimization Package requirements.
Personal Business Volume created by Sales Representatives will count toward meeting their BDC requirements if the Sales Representatives choose to change their status to UnFranchise Owner by fulfilling the Commission and Bonus Optimization Package requirements at a later time. All PBV created by Sales Representatives will be recognized as GBV for all qualified UnFranchise Owners in the upline of the creating Sales Representative.
A Sales Representative’s BDC will not be considered qualified, even if the BDC has accumulated 200 PBV, until they elect to change their status to UnFranchise Owner by fulfilling the Commission and Bonus Optimization Package requirements.
Personal Business Volume created by UnFranchise Owners will count toward their BDC requirements as specified on the product order form.
Personal Business Volumes created by UnFranchise Owners will be recognized as GBV for all qualified UnFranchise Owners in the upline of the creating UnFranchise Owner.
Qualification date (Q-date): When the UnFranchise Owner's initial BDC has been qualified, the UnFranchise Owner will be assigned a qualification date (Q-date). The Q-date is the most important element in exercising the UnFranchise Owner’s option to accumulate GBV month to month through the entire MPCP compensation cycle.
An UnFranchise® Owner's Q-date is the Friday of the week on which the UnFranchise Owner's initial BDC accumulated 200 PBV credits for product orders placed with that BDC, if the BDC is linked correctly and the UnFranchise Owner has met the Commission and Bonus Optimization Package requirements.
A Sales Representative who has accumulated 200 PBV in a BDC and has chosen to change their status to UnFranchise Owner will receive a Q-date on the Friday of the week in which the Commission and Bonus Optimization Package requirements have been fulfilled, accepted by the Market Indonesia and entered into the Company database, if the Sales Representative’s BDC is linked correctly.
The UnFranchise Owner's Q-date never changes unless the UnFranchise Owner does not file the extension package annually (see Annual Renewal).
The Q-date of the UnFranchise Owner can be obtained from the Market Indonesia UnFranchise Service Department and the UnFranchise Management System (UFMS). It is recommended that all sources be checked for verification and validation. The Q-date will not appear in the computer database until the third week after the Friday of the week in which the UnFranchise Owner has met all three criteria for qualification and is not considered established until then.
What Q-date period means:
Weekly commission cycle: All commission payout cycles are weekly, starting on Saturday and ending on Friday.
Monthly Q-date period:
If the initial Q-date falls on a Friday of a particular month, then the monthly Q-date period ends on that Friday. For example, if the initial Q-date was January 12, 2018, the monthly Q-date for July 2018 would be July 13, 2018.
If the initial Q-date falls on any day other than a Friday in a given month, then that monthly Q-date period ends on the Friday immediately following that day. For example, if the initial Q-date was January 13, 2018, the monthly Q-date for August 2018 would be August 17, 2018.
If the initial Q-date falls on the 29th, 30th or 31st of the month and the current month does not contain those dates (e.g., February, April, June, September or November), then the end of that month's Q-date period is determined by the last day of the month. In this case, if the last day of the month falls on a Friday of a particular month, then that monthly Q-date period ends on that Friday. For example, if the initial Q-date is August 31, 2018, then the monthly Q-date for November 2018 will be November 30, 2018. However, if the last day of the month falls on a day other than Friday in a given month, then the monthly Q-date period ends on the Friday immediately following the last day of the month (for example, if the initial Q-date was August 31, 2018, the monthly Q-date for September 2018 would be October 05, 2018.)
Quarter (three-Q-date period or three-start-date period): Market Indonesia quarterly periods are based on the UnFranchise Owner’s initial Q-date or the Sales Representative’s and unqualified UnFranchise Owner’s Start Dates. Quarters can also be referred to as three-Q-date periods or three-start-date periods because the Market Indonesia quarter consists of three consecutive monthly Q-date periods or, in the case of a Sales Representative or unqualified UnFranchise Owner, three consecutive monthly periods based on the Start Date. For example, if the initial Q-date was January 12, 2018, the first quarter (or three-Q-date period) ends on April 13, 2018. The second quarter would have begun on April 14, 2018, and ended on July 13. 2018.
Unlinked Business Development Centers: All assigned Business Volume (BV) to an unlinked BDC will also be unlinked. The qualifying volume for a BDC will not result in that BDC receiving a Q-date until the link is corrected. UnFranchise Owners cannot acquire any Group Business Volume (GBV) until they meet all three criteria for qualification. After properly linking a previously unlinked UnFranchise Owner, unlinked BV will be credited for the original order date; however, BV cannot be credited as accrued GBV for qualified upline UnFranchise Owners until the linkage has been properly corrected. Once the placement is corrected, the GBV will start to flow and accrue; however, some UnFranchise Owners’ upline may no longer be able to count the relinked BV for commissions if they have already earned commissions reaching the 5000/5000 GBV compensation criteria.
If an UnFranchise® Owner (UnFranchise Owner A) is unlinked simply due to improper linking, then once properly linked, UnFranchise Owner A will receive an initial Q-date (assuming all conditions for eligibility are met) of Friday of the week when Market Indonesia pays the commission when the correct link occurs (two Fridays before). NOTE: This does not apply to scenarios where the UnFranchise Owner associated with UnFranchise Owner A (UnFranchise Owner B) does not exist in Market Indonesia's computer database until a later commission week than UnFranchise Owner A (see below).
If the UnFranchise Owner (UnFranchise Owner A) is temporarily unliked because the UnFranchise Owner to whom UnFranchise Owner A was intended to be linked (UnFranchise Owner B) does not exist in the Market Indonesia database at the time UnFranchise Owner A was entered into the database, and UnFranchise Owner B is entered into the computer database in a subsequent commission week than UnFranchise Owner A, then UnFranchise Owner A will receive an initial Q-date (assuming all conditions for eligibility are met) of the Friday of the week in which UnFranchise Owner B was entered into the computer database (assuming UnFranchise Owner B is linked correctly).
The following minimum activity requirements apply to each respective status and UnFranchise Level to be considered "active" in conducting its business. “Activity” will be defined as any sale or order of a product or service that has a BV and an associated retail profit or ongoing BV from an initial sale that has a retail profit where the respective UnFranchise ID number is the payment ID number or the customer who makes the purchase is a registered PC of the respective UnFranchise Owner/Sales Representative.
Example: The BV created can come from an UnFranchise Owner/Sales Representative order in their UnFranchise.com account; orders from a PC on one of the UnFranchise Owner shopping websites provided by Market Indonesia; or part of a “package” sale where the initial portion of the sale has a BV value and retail profit and the corresponding subsequent purchase/monthly payment portion of the package has a BV but no retail profit.
UnFranchise Owners/Sales Representatives will be considered “inactive” and have accumulated Personal Business Volume (PBV) assigned to any of their personal BDCs flushed (erased to 0) and removed from the UnFranchise Owner's upline Group Business Volume (total GBV) and any accumulated GBV will be flushed (erased to 0) if all conditions listed below are not met.
Sales Representatives and unqualified UnFranchise Owners (individuals who choose not to earn commissions/bonuses through the MPCP or have not met the minimum requirements to get commission):
Sales activity: Must have product orders placed through their UnFranchise.com account or fulfilled by their UnFranchise AutoShip totaling a minimum of 150 PBV in activity assigned to their personal BDC-001 (their UnFranchise ID) each quarter (three-start-date period) based on their Start Date.
Sales documentation: UnFranchise Owner Sales Report (Form 1000) must be submitted to Market Indonesia every quarter, accompanied by a minimum of two (2) retail sales receipts proving sales during the quarter totaling a minimum of Rp3 million. Every Sales Representative or unqualified UnFranchise Owner must personally make retail sales documented on Form 1000 to their registered Preferred Customers. Sales to Preferred Customers who are also UnFranchise Owners or Sales Representatives are not eligible for this purpose and are expressly prohibited.
Not more than Rp900,000 worth of products used/consumed personally by each Sales Representative’s or unqualified UnFranchise Owner's daily household can be used as part of total sales of Rp3 million.
NOTE: If the volume flow corresponds to the MPCP, minimum sales documentation requirements that specify sales to end consumers who are not involved in the Market Indonesia MPCP is very important. The Sales Representative or unqualified UnFranchise Owner is ultimately responsible for ensuring the validity of the sales documentation.
For Sales Representatives and unqualified UnFranchise Owners, Form 1000 is intended to be automatically filled out with qualifying receipts and automatically submitted to Market Indonesia to fulfill the requirements for BDC-001 solely from the sales information recorded by the Sales Representative or unqualified UnFranchise® Owner when a manual receipt is created. All manually entered sales receipts must be completed and submitted personally by the Sales Representative or unqualified UnFranchise Owner.
The receipt sent must include the date of sale, the customer's first and last name, and physical address (residential address) or complete telephone number for acceptance. The address must include a valid zip/postal code, and the telephone number must include the area code. Receipts that do not contain complete and accurate information will be considered invalid.
Only sales receipts from products sold in the Sales Representative's or unqualified UnFranchise Owner’s “home region” are considered valid receipts.
Market Indonesia will periodically conduct random audits of the authenticity of retail receipts. Invalid receipts will result in corrective action and may invalidate the Form 1000.
Contractual relationship: Sales Representatives and unqualified UnFranchise Owners must complete and submit an Annual Renewal Form (Form 1052) in accordance with renewal procedures (see Annual Renewal).
Failure to submit the Annual Renewal Form will result in the purge (erased to 0) of PBV, denial of access to the UnFranchise.com account and termination of authorization to sell and represent Market Indonesia’s exclusive products.
For unqualified UnFranchise Owners who submit an Annual Renewal Form without submitting a renewal fee, their UnFranchise Owner status will be changed to Sales Representative. Their accumulated PBV will not be purged (erased to 0).
Qualified UnFranchise Owner (individuals who choose to earn commissions/bonuses through the MPCP).
Sales activities: Must have product orders placed through their UnFranchise.com account or fulfilled by their UnFranchise AutoShip totaling a minimum of 150 BV in activity placed to their personal BDC-001 (their UnFranchise ID) each quarter (three-Q-date period) based on their Q-date.
First three-Q-date period (first-quarter grace period): Must have product orders totaling a minimum of 50 BV in addition to the eligible orders assigned to the UnFranchise Owner’s BDC-001 within (i.e., before the end of) their first three-Q-date period.
Commission earned in the first quarter: If commissions have been earned within the first three-Q-date period, the first-quarter grace period effectively ends (unless a 28-day grace period applies — see 28-Day Grace Period). If no 28-day grace period applies, UnFranchise Owners must have product orders totaling a minimum of 150 BV in activities assigned to their personal BDC-001 (their UnFranchise ID) into (i.e., before the end of) their first three-Q-date period.
Sales documentation: An UnFranchise Owner Sales Report (Form 1000) must be submitted to Market Indonesia every quarter, accompanied by a minimum of two retail sales receipts proving sales during the quarter totaling at least Rp3 million. Each UnFranchise Owner must personally make the retail sales documented on Form 1000 to their registered Preferred Customers. Sales to Preferred Customers who are also UnFranchise Owners or Sales Representatives are not eligible for this purpose and are expressly prohibited.
No more than Rp900,000 worth of products used/consumed personally for the UnFranchise Owner's daily needs can be used as part of the total sales of Rp3 million. UnFranchise Owner purchases based on their Personal Preferred Customer ID are considered personal consumption. NOTE: Minimum sales documentation specifying sales to end consumers who are not involved in the Market Indonesia MPCP is very important. The UnFranchise Owner is ultimately responsible for ensuring the validity of the sales documentation.
For UnFranchise Management System (UFMS) subscribers, Form 1000 is intended to be automatically filled in with eligible receipts and automatically sent to Market Indonesia to fulfill BDC-001 requirements from sales with a Preferred Customer payment ID. Sales receipts can also be entered manually and submitted on Form 1000. When sales receipts and Form 1000 are submitted manually, all sales documentation must be completed and submitted personally by the UnFranchise® Owner.
A Form 1000 with accompanying receipts must be submitted once for all other BDCs (i.e., 002, 003, 004, etc.) before those BDCs are eligible for commissions, as long as the UnFranchise Owner never purges. Form 1000 will not be auto-populated or automatically submitted to satisfy this requirement; it must be prepared and submitted online or in hard copy.
The receipt submitted must contain the date of sale, the customer's first and last name and either their physical address (address of residence, including a valid zip/postal code) or complete telephone number (must include a region code). Receipts that do not contain complete and accurate information will be considered invalid and will not be accepted.
Only sales receipts from products sold in the UnFranchise Owner's “home region” are considered valid receipts.
Market Indonesia will periodically conduct random audits of the authenticity of retail receipts. Invalid receipts will result in the initiation of corrective action procedures and may invalidate the Form 1000.
Contractual relationship: An UnFranchise Owner must complete and submit an Annual Renewal Form (Form 1052) and pay for the extension package in accordance with the renewal procedures (see Annual Renewal).
Requalification:
If an eligible BDC purges for any reason, any BDC from which the UnFranchise Owner wishes to earn commissions in the future must requalify with a 200 PBV product order or accumulate 200 PBV in the respective BDC. Any individual BDC will not begin to accrue Group Business Volume (GBV) until requalified. The original Q-date received will remain valid, except for purges for non-renewal (see Annual Renewal Policy).
If an UnFranchise Owner purges for any reason, valid Form 1000s must be resubmitted for each BDC to be eligible to earn commissions for that BDC. Only BDC-001 can requalify via an auto-filled Form 1000.
UnFranchise Owners and Sales Representatives who have been inactive for 270 calendar days CANNOT retain their original/previous BDC position/placement within the organization. An UnFranchise Owner or Sales Representative is considered inactive as of the last purge date for failing to meet the Minimum Activity Requirements (see Minimum Activity Requirements). The 270-day count will not be restarted unless the UnFranchise Owner or sales Representative places a minimum of 50 PBV in BDC-001 in the next quarter with the UnFranchise Owner's payment ID. If an UnFranchise Owner or Sales Representative purges due to non-renewal, the 270-day counter will not be reset unless a Late Extension Request is submitted to the Company and the UnFranchise Owner or Sales Representative places a minimum of 50 PBV in their BDC-001 in the next quarter, with the UnFranchise Owner’s payment ID. Filing a Form 1000, an Annual Renewal Form, a Late Renewal Application or any other form by itself does not constitute activity.
UnFranchise Owners/Sales Representatives inactive ≥ 270 Days but < 1,000 days applying for reentry in the same line: UnFranchise Owners and Sales Representatives who have been inactive for 270 days, but less than 1,000 days (i.e., 270 days plus two additional years), who wish to become an UnFranchise Owner again in the same line of sponsorship as their previous UnFranchise Business, can complete an online UnFranchise Registration and submit an Independent UnFranchise Owner Application and Agreement (IUA&A) for placement down the line, or submit a printed IUA&A form. Such IUA&A must be in the same name and under the same tax identification number as their previous UnFranchise Business. The same sponsor line means any placement in the network tree under their previous BDCs.
UnFranchise Owners/Sales Representatives inactive ≥ 270 days but < 1,000 days reapplying for a different line or different name/ID#:
All UnFranchise Owners and Sales Representatives who has been inactive for 270 days but less than 1,000 days and wish to become an UnFranchise® Owner again under a different sponsor line, another name or a different tax identification number must submit a notarized document signed by the reapplying UnFranchise Owner that explains why they want to change their sponsor line or name/ID#. The notarized letter can be submitted to the Compliance Department via email to compliance@marketindonesia.id.
At the sole discretion of Market Indonesia (or its affiliated subsidiaries/family of international companies), the application of a former UnFranchise Owner or Sales Representative who has been inactive for 270 days but less than 1,000 days may be approved to be on a different sponsor line. Approval may occur if the following are found (this list is not all-inclusive, and the scope of circumstances included in the list below does not guarantee that a sponsor line change will always be approved):
The sponsor/upline did not fulfill their management obligations as stated in the UnFranchise Manual;
A complaint has been filed against the sponsor/upline for activity deemed to constitute reentry as an UnFranchise Owner;
The Company determined that there were special circumstances that justified placement in a new line of sponsors; or
The Save an UnFranchise Owner (SAUFO) program was used, but the upline did not provide satisfactory support.
UnFranchise Owners/Sales Representatives inactive ≥ 1,000 days: UnFranchise Owners and Sales Representatives who have been inactive for 1,000 days or more can go through the UnFranchise online registration or submit a printed IUA&A form to obtain placement in their previous sponsor line or any new sponsor line as long as the UnFranchise Owner or Sales Representative has complied with all other policies and procedures regarding sponsor line integrity and has not violated the Management Performance Compensation Plan (MPCP).
Unethical activities: If the Company determines that the UnFranchise Owner has acted unethically by reapplying under a different sponsorship line, then the IUA&A agreement of the UnFranchise Owner who acted unethically will be terminated. Organizations that receive profits from these unethical reapplications will have all BV generated from this activity removed, and all commissions generated from this BV will be forfeited (see Commission Refunds). UnFranchise Owners placed under an unauthorized UnFranchise Owner will be moved to the original sponsor line or appropriate placement as determined at Market Indonesia's discretion. BDCs that are not associated with an active UnFranchise Owner will remain in their current positions. If it is discovered that another active UnFranchise Owner participated in or encouraged this unethical activity, the Corrective Action Procedure will be initiated against that UnFranchise Owner (see Corrective Action Policy).
Policy circumvention: If it is discovered that the UnFranchise Owner has circumvented this policy (or any other policy) by using any device, mechanism or arrangement, such as a trade name, pseudonym, name of a spouse or family member, identification number, false Social Security number or fake Business Development Center (together, an “alter ego”) to establish an UnFranchise Business on the lines of another sponsor or by arranging for someone to establish an UnFranchise Business to be used as an “alter ego,” the IUA&A Agreement of such UnFranchise Owner will cease immediately, and all BV generated from this activity will be removed and commissions refunded. This includes using a passive “alter ego,” which is defined as an UnFranchise Owner who is not directly involved in the customary and, in some cases, required activities of authorized UnFranchise Owners. These activities include but are not limited to retail sales, meeting sales requirements, sponsoring, attending meetings, attending training classes and completing certification requirements. Additionally, UnFranchise Owners who pay with their own credit card or other form of payment to fulfill an alter ego's sales requirements to keep the alter ego active and/or eligible are considered to be participating in passive alter ego activity. There will be no tolerance for violations of these provisions.
New Q-Date: Once the BDC initially qualifies in the new placement, the UnFranchise Owner will receive a new Q-date and first-quarter grace period, as they are effectively a new UnFranchise Owner in terms of the MPCP.
Monthly service fee: UnFranchise Owners who are inactive for 270 days and have credit in their Market Indonesia account will be charged a monthly service fee, either until the UnFranchise® Owner establishes a new UnFranchise business at the bottom of the network lineage (or as permitted by this policy) or the account balance sum to zero, whichever occurs first.
Each Independent UnFranchise Owner Application and Agreement (IUA&A) term ends on the last business day of the UnFranchise Owner's/Sales Representative’s “Start Month” in the following year. The Start Month is the month in which an UnFranchise Owner or Sales Representative’s Start Date falls. To extend the IUA&A term, UnFranchise Owners and Sales Representatives must renew annually by submitting the Annual Renewal Form (Form 1052) by the last business day of the UnFranchise Owner/Sales Representative’s Start Month.
Sales Representative: A Sales Representative must complete and submit a printed version of Form 1052 before the last business day of the beginning of the following month.
There isn't any extension package for Sales Representatives. Sales Representatives are unable to participate in the MPCP.
Sales Representatives who do not send Form 1052 at the specified time will have access to their UnFranchise.com account suspended; however, the IUA&A “Sales Representative, Late Extension” provisions can be applied, and access to the UnFranchise.com account can be reactivated.
NOTE: Upline UnFranchise Owners should be aware that if the Annual Renewal Form is not received on time, the Sales Representative’s Personal Business Volume (PBV) will purge (erase to 0). This will impact Group Business Volume (GBV) even if other requirements have been met.
UnFranchise Owners: UnFranchise Owners are required to complete and send Form 1052 and the fees to register for the Auto-Renewal Program to their UnFranchise.com account. Each UnFranchise Owner is required to pay their own fees.
An UnFranchise Owner who does not submit Form 1052 on time will have all PBV purged (erased to 0), GBV flushed (erased to 0), their initial Q-date erased from the database and access to their UnFranchise.com account suspended.
An UnFranchise Owner who submits Form 1052 without paying the fee will have all GBV flushed (erased to 0), their initial Q-date erased from the database, and their status reduced to Sales Representative. However, PBV will not be purged. The reduction to Sales Representative status will cause the quarterly calculations (which are based on the Minimum Activity Requirement due date) to no longer be based on the initial Q-date but instead on the Start Date (see Minimum Activity Requirement).
An UnFranchise Owner who does not renew on time is required to submit an IUA&A with “Late Renewal” selected and purchase an extension package to regain its UnFranchise Owner status. Late renewal does not eliminate the initial placement and sponsorship of the UnFranchise Owner. However, the UnFranchise Owner will need to requalify and obtain a new Q-date after meeting all qualification requirements. First-quarter grace period terms will apply (see Minimum Activity Requirements and Exercising the Monthly Accrual Option).
If Form 1052 is submitted on time but with a payment for the extension package that cannot be accepted by Market Indonesia for any reason (e.g., dishonored checks, checks without the UnFranchise Owner's name and address printed by the bank, etc.), the form and renewal package money will be returned to the UnFranchise Owner without processing. In this case, the UnFranchise Owner must submit another Form 1052 and buy the extension package with an acceptable payment method before the Annual Renewal deadline.
Auto-Renewal Program
To use the Auto-Renewal Program, the UnFranchise Owner must “opt in” to the program in their UnFranchise.com account. UnFranchise Owners may participate in this program upon initial enrollment or at any time thereafter, except that access to the Automatic Renewal Program is blocked five (5) days prior to the first day of the Start Month. UnFranchise Owners cannot opt in to or opt out of the Auto-Renewal Program during this period because the renewal process has already begun.
Primary and secondary credit cards can be specified in the credit card section of the UnFranchise.com account.
The primary credit card will be charged for the extension package on the first day of the Start Month.
If the first attempt to charge the primary credit card fails, the primary credit card will be charged for the extension package again on the second day of the Start Month.
If, after the second attempt, the primary credit card still fails and there is an option for a second credit card, then the second credit card will be charged for the extension package on the third day of the Start Month.
If all of the above attempts still fail to pay the fee, then the UnFranchise® Owner must perform a manual extension by physically sending Form 1052 along with the fee before the last day of the Start Month.
UnFranchise Owners can also set up auto-renewal for their Asia-Pacific Global account by logging into that country's UnFranchise.com account. Operational International Reentry Center (IRC) falls under Global Unification and does not require an extension package separate from the main UnFranchise Business extension.
The annual extension package is non-refundable.
A qualified BDC will accumulate Group Business Volume (GBV) each month, provided (1) a Personal Business Volume (PBV) order on BDC-001 is placed and (2) an order for the Commission and Bonus Optimization Package (UFMS) is received by Market Indonesia, both by the appropriate dates. This Monthly Accrual Option can be implemented using the UnFranchise AutoShip Program or by placing a manual order with a minimum PBV and/or UFMS amount. NOTE: UnFranchise Owners are required to pay for their own Commission and Bonus Optimization Package (UFMS).
To exercise the Monthly Accrual Option: The minimum monthly PBV amounts to exercise the Monthly Accrual Option is as follows: 50 PBV for UnFranchise Owner Level, 100 PBV for Coordinator Level, and 150 PBV for Executive Coordinator Level or higher. Each UnFranchise Level will be determined based on MPCP payout criteria fulfilled in any of the MPCPs (i.e., “Global”) where the UnFranchise Owner has met the qualifications. Example: If an UnFranchise Owner receives a commission equivalent to Rp4.5 million for reaching 1200/1200, 2400/2400 or 3600/3600 GBV in a “Global” MPCP, then the UnFranchise Owner will be designated as a “Coordinator” in their “home region” MPCP and all associated UnFranchise Level requirements for all MPCPs will apply. UnFranchise Owners placing product orders for the minimum monthly PBV (50, 100 or 150) to their BDC-001 and ordering or renewing their Commission and Bonus Optimization Package (UFMS) by their monthly Q-date will fulfill the conditions for implementing the Monthly Accrual Option for each of their BDCs that meet the qualifications in any amount (excluding acquired/purchased BDCs).
First three-Q-date period (first-quarter grace period): A qualified BDC will continue to accumulate GBV in the first three-Q-date period by retaining 50 PBV in addition to qualifying orders that have been placed and assigned to the UnFranchise Owner’s BDC-001 within (i.e., before the end of) their first three-Q-date period, and UnFranchise Owner has purchased at least one Commission and Bonus Optimization Package (UFMS) in the final month of their first three-Q-date period.
No commission earned in the first quarter: If no commission is earned in the first three-Q-date period, and if both a minimum of 50 PBV and at least a one-month Commission and Bonus Optimization Package (UFMS) is not placed in the first three-Q-date period, then all GBV accrued by the UnFranchise Owner's BDCs will be flushed (erased to 0).
Commission earned in the first quarter: If a commission has been earned during the first three-Q-date period, then the first-quarter grace period ends (unless a 28-day grace period provision applies – see 28-Day Grace Period). If there is no applicable 28-day grace period, then the UnFranchise Owner must submit the applicable minimum PBV (100 PBV for Coordinator; 150 PBV for Executive Coordinator) and an order for the UFMS to exercise of the Monthly Accrual Option. This is done by assigning the minimum PBV amount to the UnFranchise Owner’s BDC-001 and purchasing a Commission and Bonus Optimization Package (UFMS) for the current monthly Q-date period. If an UnFranchise Owner earns a commission within the first three-Q-date period, they must immediately contact the active upline Certified Executive Coordinator to ensure that appropriate BV and an order for the UFMS are placed to continue accumulating GBV month to month.
After the first quarter: After the first three-Q-date period, to continue earning GBV each month, UnFranchise Owners must place the applicable minimum PBV amount (50, 100 or 150 PBV) assigned to their BDC-001 and order their Commission and Bonus Optimization Package (UFMS) before their Q-date every month. NOTE: The minimum PBV and order for the UFMS must be received by the week-ending Friday in which the Q-date falls. To count for a specific month, the BV and order for the UFMS must be placed after the end of the previous monthly Q-date period and by the last day of the current monthly Q-date period.
28-day grace period: For every commission earned that causes an UnFranchise Owner’s criteria to change regarding exercising the Monthly Accrual Option, a 28-day grace period will apply based on the following rules:
In relation to BV: If commissions that would increase the UnFranchise Owner's minimum monthly PBV amount are earned within 28 days of the next monthly Q-date, then the UnFranchise Owner remains at the current BV level to continue accumulating GBV from month to month. The UnFranchise Owner must then submit the applicable PBV (100 PBV for Coordinators; 150 PBV for Executive Coordinators) for the first monthly Q-date period for which the 28-day grace period does not apply. However, if a commission that would increase the UnFranchise Owner's minimum monthly PBV amount is earned, and the upcoming monthly Q-date is more than 28 days from the date the commission was earned, then the UnFranchise Owner must submit the applicable PBV (100 PBV for Coordinator; 150 PBV for Executive Coordinator) by the next monthly Q-date to continue accumulating GBV from month to month. NOTE: If the commission that would increase the UnFranchise Owner's minimum monthly PBV amount is earned within 28 days of the next monthly Q-date, and the UnFranchise Owner is in their first three-Q-date period, then the rules of the three-Q-date period still apply as if no commission was earned. See First Three-Q-date Period (First-Quarter Grace Period).
In connection with the UnFranchise Management System: If commissions are earned within 28 days of the next monthly Q-date, and the UnFranchise Owner is in their first three-Q-date period, then the rules of the first three-Q-date period remain in effect as if no commissions were earned. See First Three-Q-date Period (First-Quarter Grace Period).
UnFranchise Owners who do not exercise the accrual option: Exercising the Monthly Accrual Option is not required:
If the UnFranchise Owner chooses not to exercise the Monthly Accrual Option, their GBV accumulated through the end of the monthly Q-date period in which the Monthly Accrual Option was not exercised will be flushed (erased to 0); however, UnFranchise Owners who remain qualified will begin earning GBV again starting the week of commission directly after the flush.
If the UnFranchise Owner does not exercise the Monthly Accrual Option on the next monthly Q-date, their accumulated GBV will be flushed (erased to 0) again at the end of that monthly Q-date period, and so on.
Group Business Volume Active Period: Accumulated GBV will have a shelf life of 365 days from the date of order. The active period for GBV does not extend to the Friday of the week in which the order turns 365 days old but ends on the 366th day. GBV older than 365 days no longer counts toward commission payments.
A BDC must be activated to earn commissions and management bonuses. This is accomplished by the UnFranchise Owner personally sponsoring at least one qualified UnFranchise Owner assigned in the left downline of the BDC and personally sponsoring at least one UnFranchise Owner assigned in the right downline of the BDC.
Minimum requirements and maintenance: In order for a BDC to earn commissions and management bonuses, at least one personally sponsored and qualified UnFranchise® Owner must be in the left and right downlines. Failure to maintain at least one qualified personally sponsored UnFranchise Owner on both the left and right sides of the BDC will result in the sponsoring UnFranchise Owner's commission payments being forfeited when the required volume is reached. No retroactive commissions will be paid.
BDC-002 on the right side and BDC on the left side (inner leg) for all UFOs will not apply for business development until the UFO receives a commission of Rp202.5 million in 12 weeks, equivalent to the achievement of a Professional Coordinator in three consecutive months.
UnFranchise Owner Eligibility:
A new, qualified UnFranchise Owner who is not properly linked (unlinked BDC) will not be valid for activating the sponsoring UnFranchise Owner until the date the link is corrected.
Qualified UnFranchise Owners who operate at the same address as a registered UnFranchise Owner, even if the Company has approved the UnFranchise Business, will not be considered to have met the activation requirements for any UnFranchise Owner.
BDCs placed from a reentry authorization or other form of BDC acquisition will not be considered to have met the activation requirements.
Non-Profit Organizations (NPOs) of UnFranchise Businesses will not be counted as meeting activation requirements.
False, fabricated or ephemeral sponsorship to fulfill activation requirements is prohibited and will void activation. Fraud or false sponsorship includes, without limitation, use of any of the following to disguise the true identity and/or lack of activity of the UnFranchise Owner used for activation: (a) trade name, (b) pseudonym, (c) identification number, (d) false Social Security number, (e) agreement to operate an UnFranchise Business, (f) spouse or significant other, (g) family member, (h) business or non-profit entity or (i) acting in concert with a third party to fulfill activation, where such third party does not perform the specific, and in some cases required, activities of a credible UnFranchise Owner. These activities include, without limitation, retail sales, meeting sales requirements, sponsoring, attending meetings, attending required training classes and completing certification requirements. If a Company discovers such practices, the following consequences may occur:
UnFranchise Owners who commit violations may be required to repay all earned commissions obtained from unauthorized sponsorship.
The accumulated volume of the violating UnFranchise Owner will be flushed (erased to 0).
Violating UnFranchise Owners will be subject to Corrective Action Procedures.
The following are the minimum requirements for UnFranchise Owners to continue earning commissions and bonuses based on the MPCP.
Form 1000: An UnFranchise Owner must complete and submit a valid Form 1000 to Market Indonesia, accompanied by a minimum of two sales receipts totaling Rp3 million to receive any commission, including the UnFranchise Owner's first commission. Failure to comply will result in commissions being suspended for either four consecutive weekly commission cycles from the week the commission was due to be paid or until the end of the current quarter if the commission is for BDC-001, whichever comes first. If the Form 1000 requirement is still not met by the end of this suspension period, commissions will be forfeited. NOTE: Form 1000 for BDC-001 is due at the end of the UnFranchise Owner's quarter, regardless of any commission. If a valid Form 1000 is not received for BDC-001 by the UnFranchise Owner’s quarter-ending date, it will not only flush the Group Business Volume (GBV) and purge Personal Business Volume (PBV) totals but also forfeit any commissions held for BDC-001 for failure fulfilling the requirements of Form 1000.
Coordinator (UnFranchise Owner who has received a commission of Rp4.5 million): In addition to the Form 1000 requirements, Coordinators must complete and submit the Executive Coordinator Qualification and Application (Form 1001) and Executive Coordinator Acknowledgment and Agreement (Form 925) to Market Indonesia within 28 days of qualifying for their first Rp4.5 million commission. Failure to comply will result in subsequent commissions being withheld for four consecutive weekly commission cycles from the week in which the commission should have been paid. If the requirements are still not met by the end of this suspension period, commissions will be forfeited. Filling out and submitting Form 1001 and Form 925 should be done first, and then this requirement must be fulfilled every year by submitting the Annual Renewal Form.
Executive Coordinator (UnFranchise® Owner who has received a commission of Rp9 million by accumulating 5,000 Group Business Volume on the left and right): In addition to the Form 1000 requirement and the minimum commissions specified for the Coordinator, the Executive Coordinator is also required to meet the minimum commission requirements as follows:
Executive Coordinators must complete a New UnFranchise Owner Training course (NUOT), a Basic 5 Training (Basic 5) and an Executive Coordinator Certification Training (ECCT) and pass the test (passing score) within 28 days of fulfilling the first commission qualification for Executive Coordinator, amounting to Rp9 million. Failure to comply will result in subsequent commissions being withheld for four weekly commission cycles from the week the commission was due to be paid. If the requirements remain unfulfilled by the end of this period, the commission will be canceled. These requirements must be met before an UnFranchise Owner can be declared successful at achieving the Executive Coordinator UnFranchise Level.
Qualified, active and activated BDCs that participate in the MPCP are entitled to receive commissions and weekly management bonuses on the Group Business Volume (GBV) generated by the UnFranchise Owner in their downline organizations.
Weekly Cycle: Weekly commission cycles calculating accrued GBV from product orders placed, assigned and processed correctly will begin at 2:00 p.m. WIB on Friday and end at 1:59 p.m. WIB on the following Friday (excluding the grace period provided by UFMS for members who use 800 number orders or online order processing). NOTE: the Friday-to-Friday commission cycle only refers to the weekly cycle in which Market Indonesia determines commission qualifications; it does not refer to Market Indonesia's processing time for the commission.
Orders received by post at 1:59 p.m. WIB on Friday will be counted toward that week. The 1:59 p.m. deadline also applies to all other mail, such as Form 1000 and other business form submissions. NOTE: Postal notes about delivery times for Indonesia postal packages or other Indonesia delivery couriers are not final; therefore, official package delivery times are based solely on the actual time of receipt by Market Indonesia as recorded by Market Indonesia.
Form 1000s timely submitted by the end of the UnFranchise Owner’s quarter and submitted online by 11:59 p.m. WIB on Friday will count toward that week's period.
UFMS members will have until 4:59 p.m. WIB on Friday to place an order via an 800 number using an approved, registered credit card or “credit on account” as the payment method.
Online orders placed by registered Preferred Customers by 11:59 p.m. WIB on Friday will be counted toward the current period if the UFO has a current Commission and Bonus Optimization Package (UFMS). If the UFO does not have a current Commission and Bonus Optimization Package, orders placed by 4:59 p.m. WIB will count toward the current period.
Online orders placed at UnFranchise.com by a UFMS member by 11:59 p.m. WIB on Friday will be counted toward the current period if the UFO has a current Commission and Bonus Optimization Package to place an order via the online ordering process. If the UFO does not have a current Commission and Bonus Optimization Package, orders placed until 4:59 p.m. WIB will be calculated for the current period.
Note: If Market Indonesia determines that UFMS is not functioning properly from the corporate office for an unspecified period of time, UFMS members have until 4:59 WIB on Saturday to submit or walk in orders. UFMS members must print prominently at the top of the order form, “UFMS Issues — please consider for the week ending xx/xx/xx.” No other orders will be accepted.
Note: Determining the extension of the normal order deadline is entirely at Market Indonesia's discretion. If Market Indonesia determines that there is not enough "downtime" to warrant an extension past the 11:59 p.m. WIB deadline for online electronic orders, then every order received by Market Indonesia after 11:59 p.m. WIB will be credited for the following week.
Weekly commissions and management bonuses will be paid based on total GBV based on final posting and reconciliation figures, two-week from the week-ending Friday of that particular commission cycle.
Weekly compensation criteria and management parameters:
Commission Rp4.5 million: for accruing equal to or greater than1,200 GBV on the left side and 1,200 GBV on the right side of the BDC.
Commission Rp4.5 million: for accruing equal to or greater than 2,400 GBV on the left side and 2,400 GBV on the right side of the BDC. This includes the previous 1,200 GBV.
Commission Rp4.5 million: for accruing equal to or greater than 3,600 GBV on the left side and 3,600 GBV on the right side of the BDC. This includes the previous 2,400 GBV.
Commission Rp9 million: for accruing equal to or greater than 5,000 GBV on the left side and 5,000 GBV on the right side of the BDC. This includes the previous 3,600 GBV.
Management bonus Rp9 million: When having a BDC on the left side and a BDC on the right side, each receive a commission of Rp9 million for achieving the 5,000/5,000 GBV compensation criteria in the same weekly commission cycle with the BDC receiving a commission of Rp9 million for achieving the 5,000/5,000 GBV compensation criteria. NOTE: All three commissions must meet all requirements to be released at the same time. If any commission that would otherwise contribute to a management bonus is withheld for any reason (see Minimum Commission Requirements), then such withheld commission will not be eligible to contribute to any management bonus for the week in which the commission would have been earned otherwise. Also, only home region UnFranchise® Owners in the downline that flushed within the same weekly pay cycle count toward qualifying for management bonuses.
All total GBV accumulated is cumulative (i.e., includes GBV accumulated to reach previous compensation criteria) until the 5,000/5,000 GBV compensation criterion is reached. After reaching the 5,000/5,000 GBV compensation criteria, the BDC flushes (erases GBV to 0) and starts the commission cycle again the following week.
Any excess GBV over the 5,000 GBV compensation criteria will not be carried over to the next commission cycle.
All or part of the compensation criteria met in a given weekly commission cycle will be paid for that week. The maximum commission and management bonus that one BDC can earn in a weekly commission cycle is Rp31.5 million.
Commission payments will be made by direct deposit to a bank account registered with Market Indonesia, as registered in the UnFranchise.com account.
If for any reason an UnFranchise Owner attempts to withdraw a direct deposit before the time required for the bank to return the deposit, for example, where the bank account on file has been closed, or the account information was entered incorrectly, a service fee of Rp525,000 will be charged against the funds deposited and another ACH deposit will be made to an account properly registered in the UnFranchise Owner's UnFranchise.com account.
If the UnFranchise Owner would like to receive a commission check for any reason but does not receive it in the mail, the UnFranchise Owner may contact UnFranchise Services to request a stop payment of commissions by check.
UnFranchise Owners must wait a full two weeks from the date the check is mailed to request a stoppage in commission payments. If the check has not been cashed, a replacement check will be issued. There is no charge to the UnFranchise Owner to stop payment of a commission check as long as the UnFranchise Owner never receives the check and waits a full two weeks before contacting Market Indonesia.
If the UnFranchise Owner wishes to request a termination of commission payments by check before the two week waiting period has expired (for example, the check was accidentally thrown in the trash), a service fee of Rp450,000 will be charged against the UnFranchise® Owner's credit account.
Once an UnFranchise Owner requests that payment be stopped, they may not attempt to cash the original check if it is received. UnFranchise Owners must wait for a replacement check.
Market Indonesia will issue a stop payment for any commission checks that have not been cleared by the bank within six months from the date the check was issued. The amount of the check, less any applicable stop payment fees, will be placed on the UnFranchise Owner's Market Indonesia credit account.
Commissions earned and any credits on account balances may be held and/or withdrawn in accordance with the procedures below. A service fee of Rp450,000 will be charged if Market Indonesia manages the process to complete the hold and/or disbursement.
Court ordered action.
Government Levy.
Compensation for set-off value of debt to Market Indonesia.
Part of the Corrective Action process.
Disputes between parties to an UnFranchise Business, including spouses, may result in a hold on commissions and credit accounts until a resolution is reached. A service fee of Rp450,000 will be charged to the UnFranchise Business for this situation.
Additional BDCs may be placed and/or acquired (other than initial registration) only in the downline of an UnFranchise Owner’s BDC-001 through reentry authorization or acquisition of a BDC.
Business Development Center Reentry:
An UnFranchise Owner is granted reentry authorization for the first time and only ONE time per BDC upon receiving a commission for reaching the 5,000/5,000 GBV compensation criteria for the respective BDC within their “home region” MPCP. Reentry will NOT be granted for achieving the 5000/5000 GBV compensation criteria in a “global” MPCP (see the Global Management Performance Compensation Plan section to learn how to earn additional global BDCs). Reentry will not be considered valid by Market Indonesia until the UnFranchise Owner receives the commission. Subsequent attainment of the 5000/5000 GBV compensation criteria will not authorize another reentry unless accomplished by an additional BDC (e.g., 002, 003, 004, etc.). An invalid reentry qualification order will have the BV automatically assigned to the UnFranchise Owner’s BDC-001.
Reentry of an additional BDC must be carried out in accordance with the provisions of letter (a) OR (b) below:
There must be at least five (5) UnFranchise Businesses including all of their BDCs (established at registration) between the reentering UnFranchise Owner's initial BDCs and the placement of the reentry; or
The reentry must be placed under a BDC in your organization (excluding any of your personal BDCs) that has completed a payout cycle (5000 BV on the left and 5000 BV on the right, and earned a final commission of Rp9 million) within the MPCP.
The reentry BDC-004 can only be placed on the left leg of BDC-002 and the right leg of BDC-003 in accordance with all other reentry placement rules until the UnFranchise Owner meets the commission criteria of Rp202.5 million in 12 consecutive weekly payment cycles, equivalent to Professional Coordinator achievement for three consecutive months. Additionally, the inner leg of BDC-004 will not qualify for new UnFranchise Owner placement until the Rp202.5 million commission criteria in 12 consecutive weekly payment cycles has been met.
Additional BDCs from the reentry must meet the qualification of 200 Personal Business Volume (PBV) at the time the reentry BDC is placed. The UnFranchise Owner Sales Report (Form 1000) must be completed and submitted, accompanied by a minimum of two retail receipts totaling Rp3 million before receiving a commission (this is a one-time requirement unless the UnFranchise® Owner purges at some point).
Business Development Center Acquisition: The acquisition of additional BDCs in the UnFranchise Owner's downline is approved only in very rare and extraordinary circumstances and is initiated by obtaining written approval from the Company. UnFranchise Owners may not sell, assign or transfer their BDCs, marketing positions or other UnFranchise Owner rights and obligations without written permission from the Company. The UnFranchise Owner must first send a letter to the Compliance Department requesting approval to purchase the BDC(s) and detailing the special circumstances.
The prospective "buyer" must have an equivalent or higher UnFranchise Level as the "selling" UnFranchise Owner and must have been an Independent UnFranchise Owner of Market Indonesia for at least 12 months prior to the acquisition.
UnFranchise Owners may only acquire BDCs in their downline, and selling UnFranchise Owner may not be inactive for more than 270 days.
An UnFranchise Owner who waives his or her rights and obligations to a BDC is not entitled to be re-sponsored as an UnFranchise Owner for a period of 270 days from the date of sale and/or transfer.
Agreement:
After obtaining written approval from the Company, the UnFranchise Owner must submit a notarized purchase agreement, signed by both the terminating and purchasing UnFranchise Owners, along with a processing fee of Rp150,000 per BDC, to the Compliance Department.
Each acquired UnFranchise Business will be assigned an identification number separate and distinct from the UnFranchise Owner's original BDC, of which the Company will notify the acquiring UnFranchise Owner by telephone or mail.
Upon receipt of a new identification number, the acquiring UnFranchise Owner must requalify each acquired BDC to begin accumulating GBV in each BDC. NOTE: The original Q-date of the BDC will remain the same as when it was initially qualified. There is no other first-quarter grace period. UnFranchise Owners must meet the PBV based on the UnFranchise Owner Level achieved by the previous UnFranchise Owner to continue generating GBV from month to month.
Each acquired BDC must be reactivated to be eligible for commissions and management bonuses. The original sponsorship rights for the downline UnFranchise Owners of the acquired BDCs for activation requirements terminate upon acquisition.
The acquired BDC-001 must be registered with the AutoShip Program within 28 days after the Company issues the new ID number.
All activity requirements will apply to each acquired BDC or group of BDCs (in the case of acquiring an UnFranchise Business) that is separate and distinct from the BDCs held upon initial registration or owned through reentry authorization. This should include requirements relative to qualifications, activation, management, Annual Renewal, UFMS membership, etc.
All activity requirements shall apply to each acquired BDC or groups of BDCs (in the case of acquiring an UnFranchise Business) separate and distinct from BDCs owned by initial entry or owned through reentry authorization. This shall include requirements relative to qualification, activation, management, Annual Renewal, UFMS membership, etc.
Please allow 10–15 working days from the date of the Company's written approval for Market Indonesia to form the acquired BDC. Don't place UnFranchise Owner’s downline until this process is complete in the computer system.
Management levels (UnFranchise Levels) can be achieved through participation in the MPCP. UnFranchise Owners new management level achievements will be recognized in Market Indonesia’s UnFranchise Owner Magazine. UnFranchise Level requirements are as follows.
Level 1 — UNFRANCHISE® OWNER
Complete the Independent UnFranchise Owner Application and Agreement.
Meet the E Business package purchase requirements (Package Plus or E Business Package Premium).
Level 2 — QUALIFIED UNFRANCHISE OWNER
Complete Level 1.
Place and accumulate 200 Personal Business Volume on BDC-001.
Maintaining proper linkage in the Market Indonesia genealogy.
Level 3 — COORDINATOR (Blue Pin)
Complete Level 2
Build two sales and distribution organizations, one on the left and one on the right of the BDC, each accumulating 1,200 GBV an one weekly commission cycle.
Receive a commission of Rp4.5 million.
Level 4 — EXECUTIVE COORDINATOR (Blue Pin with One Diamond)
Complete Level 3
Build two sales and distribution organizations, one on the left and one on the right of the BDC, each accumulating 5,000 GBV in one weekly commission cycle.
Receive a commission of Rp9 million.
Level 5 — SENIOR EXECUTIVE COORDINATOR (Blue Pin with One Diamond and a Sapphire)
Complete Level 4
Receive a management bonus of Rp22.5 million.
Level 6 — MASTER COORDINATOR (Blue Pin with Two Diamonds)
Complete Level 4
Receive a management bonus of Rp9 million.
Level 7 — SENIOR MASTER COORDINATOR (Blue Pin with Two Diamonds and a Sapphire)
Complete Level 5
Receive a commission and management bonus of Rp45 million in four consecutive weekly commission cycles.
Level 8 — PROFESSIONAL COORDINATOR (Blue Pin with Three Diamonds)
Complete Level 5
Receive a commission and management bonus of Rp67.5 million in four consecutive weekly commission cycles.
Level 9 — SUPERVISING COORDINATOR (Blue Pin with Four Diamonds)
Complete Level 5
Receive a commission and management bonus of Rp112.5 million in four consecutive weekly commission cycles.
Level 10 — NATIONAL SUPERVISING COORDINATOR (Blue Pin with Five Diamonds)
Complete Level 5
Receive a commission and management bonus of Rp150 million in four consecutive weekly commission cycles.
Level 11 — EXECUTIVE SUPERVISING COORDINATOR (Blue Pin with Six Diamonds)
Complete Level 5
Receive a commission and management bonus of Rp225 million in four consecutive weekly commission cycles.
Level 12 — DIRECTOR (Onyx with One Diamond)
Complete Level 5
Receive a commission and management bonus of Rp270 million in four consecutive weekly commission cycles.
Level 13 — EXECUTIVE DIRECTOR (Onyx with Two Diamonds)
Complete Level 5
Receive a commission and management bonus of Rp375 million in four consecutive weekly commission cycles.
Level 14 — FIELD VICE PRESIDENT (Onyx with Three Diamonds)
Complete Level 5
Receive a commission and management bonus of Rp540 million in four consecutive weekly cycles.
Level 15 — EXECUTIVE FIELD VICE PRESIDENT (Onyx with Four Diamonds)
Complete Level 5
Obtained commission and management bonus of Rp675 million in four consecutive weekly cycles.
Level 16 — SENIOR EXECUTIVE FIELD VICE PRESIDENT (Onyx with Five Diamonds)
Complete Level 5
Obtained commissions and management bonuses of Rp945 million in four consecutive weekly cycles.
Level 17 — FIELD PRESIDENT (Onyx with Six Diamonds)
Complete Level 5
Obtained commissions and management bonuses of Rp1.2 billion in four consecutive weekly cycles.
Level 18 — INTERNATIONAL FIELD PRESIDENT (Platinum with One Diamond)
Complete Level 5
Obtained commissions and management bonuses of Rp1.5 billion in four consecutive weekly cycles.
Level 19 — INTERNATIONAL FIELD CHAIRMAN (Platinum with Two Diamonds)
Complete Level 5
Obtained commissions and management bonuses of Rp1,875 billion in four consecutive weekly cycles.
Level 20 — SENIOR INTERNATIONAL FIELD CHAIRMAN (Platinum with Three Diamonds)
Complete Level 5
Obtained commissions and management bonuses of Rp2.25 billion in four consecutive weekly cycles.
A Master UnFranchise® Owner is a qualified and active UnFranchise Owner who is committed to mastering the UnFranchise Business System by carrying out tasks, activities and practices.
Qualifications:
Complete a Shopping Annuity® assessment.
Own a Commission and Bonus Optimization Package (UFMS).
Purchase a total of 1,500 BV of products in the quarter.
Personally sponsor at least one (1) qualified and active UnFranchise Owner.
For the quarter, attend or host:
One (1) New UnFranchise Owner Training (NUOT).
One (1) Basic 5 Training (Basic 5).
Attend one (1) Executive Coordinator Certification Training (ECCT) per year.
Purchase a minimum of three (3) tickets to the next Market Indonesia Annual Convention or Leadership School.
Earn a minimum of Rp13.5 million BV commission per quarter and/or complete a Basic 5 Diagnostic Test, where the UnFranchise® Owner obtains a score greater than or equal to 50 percent.
All qualifying criteria must be met within the calendar quarter in which the UnFranchise Owner applies. UnFranchise Owners must submit a Qualification Verification and Validation Form by the 28th day after the end of the quarter.
When an UnFranchise Owner meets the Master UnFranchise Owner qualifications, the UnFranchise Owner has the right to designate a second UnFranchise Owner for volume placement for the quarter following the reconciliation/verification quarter, subject to downline placement policies. For example, UnFranchise Owners who completed the Master UnFranchise Owner criteria during the second quarter of 2019 were eligible to appoint a second UnFranchise Owner for volume placement for the fourth quarter.
A second placement will be awarded for each quarter in which the UnFranchise Owner qualifies as a Master UnFranchise Owner. If qualifications are not met for the following quarter, the designated second placement will be removed.
Several countries have been grouped into regional areas to simplify international development.
Regions:
Americas Region: The United States, Canada and other EMP countries in Latin America became one regional area, the Americas Region.
Asia-Pacific Region: Hong Kong, Taiwan, Australia, Singapore, Indonesia and other EMP countries in the Asia-Pacific region become one regional area, the Asia-Pacific Region.
Europe Region: The United Kingdom and other EMP countries in the European Union region become one regional area, the Europe Region.
Home Region: The home region is the regional area where the UnFranchise Owner registered their UnFranchise Business.
Activation: To count as an activation, the sponsored UFO must originate from the same BDC where they are activated.
Account Unification: BV accumulated from UnFranchise Owners doing business in two or more countries within a Region counts toward a “Unified Account.” NOTE: All UnFranchise Owners who have expanded their business to Taiwan, Hong Kong, Singapore, Indonesia and/or Australia will have their accounts in those countries unified.
Commission: Commission will be calculated based on the BV accrued in the Unified Account. Commissions will be paid in the UnFranchise Owner's home currency (for example, for Canadian UnFranchise Owners, commissions will be paid in Canadian dollars).
Compliance with local rules and regulations: To comply with the different laws and regulations of the countries in which Market Indonesia and/or its affiliates operate, the UnFranchise Guidelines vary from country to country according to applicable laws and regulations. UnFranchise Owners who expand within a particular Region and into other Regions must conduct their activities and manage the activities of their organization in those countries in accordance with the UnFranchise Manual of that particular country or region and in accordance with the laws and regulations governing their business operations in that particular country or region.
The following are requirements for UnFranchise Owners wishing to expand to the Americas Region, as defined in the Regions Unification section, to be eligible to participate in the Global MPCP. Expansion into the European Region is explained under Global Unification.
Application: UnFranchise® Owners must log in to UnFranchise.com and complete and submit the Global UnFranchise Owner Agreement and the Non-resident Independent UnFranchise Owner Application and Agreement.
In order to activate your Taiwan UnFranchise Business, you must submit the original completed Taiwan Nonresident Agreement via regular mail to the corporate office. Retail profit and/or commissions will be awarded from the date we receive your Taiwan Nonresident agreement.
Designation of initial participating BDC: UnFranchise Owners must designate a currently existing personal BDC to participate in the accrual of global group BV generated from the purchase of products by Americas Region UnFranchise Owners and their customer base within the left and right organizations of this designated personal BDC. Initially, UnFranchise Owners may only designate one personal BDC to participate in the Global MPCP. UnFranchise Owners must log in to UnFranchise.com and register to designate their initial personal BDC for participation in the Global MPCP.
Designation of additional participating BDCs: UnFranchise Owners will earn the right to designate additional personal BDCs to participate in the Global MPCP through an additional BDC designation process. It works exactly like the re-entry authorization process within the standard MPCP, with the only difference being that instead of earning the right to create a new BDC, eligible UnFranchise Owners will simply designate an additional existing personal BDC within their organization in which to accrue global GBV for additional potential global commissions. The first time a personal BDC designated to participate in the Global MPCP completes the entire Compensation Payout Cycle (i.e., earns a commission for accruing at least 5,000 global GBV from the left organization and 5,000 global GBV from the right organization) UnFranchise Owners are authorized to designate one additional existing personal BDC to participate in the Americas Region MPCP.
Placement of personally sponsored global UnFranchise Owner BDCs: Global UnFranchise Owners must be linked/placed on either the left or right side of the sponsoring UnFranchise Owner’s designated BDC(s) currently existing in the UnFranchise Business Development System. These Global UnFranchise Owners can only be linked/placed on the left leg of the BDC-002 and the right leg of the BDC-003 of the UnFranchise Owner with the Master UnFranchise Owner level until such UnFranchise Owner has earned not less than RM202.500.000 in 12 consecutive weekly pay cycles. All BDCs, “home region” and global, are placed within the same genealogical or organizational system.
Accrual of global GBV: To make the designated BDC eligible to accrue global GBV, UnFranchise Owners must order an Americas Region subscription kit (this is done during the initial sign-up process), place an order for 200 PBV worth of home region products and assign BV placement to the designated BDC (this is done during the initial sign-up process once the UnFranchise Owner has designated their global BDC). To continue accruing global GBV toward commission payout criteria, UnFranchise Owners must meet the minimum activity requirements of the standard MPCP and exercise the Monthly Accrual Option in accordance with the standard requirements of the MPCP. A bad flush and/or purge in the standard MPCP for not meeting the minimum activity requirements or executing the Monthly Accrual Option will result in the same within the Global MPCP. If a purge occurs in the home region MPCP, the home region BDCs must be requalified before requalifying any global BDCs. NOTE: UnFranchise Owners will not accrue any global GBV from orders generated prior to qualifying their own global BDC.
Minimum global GBV commissions requirements: In order to be eligible to earn and receive global commissions, UnFranchise Owners must:
Be activated in accordance with the standard MPCP requirement in their home region.
Activate their designated global BDC by personally sponsoring at least one qualified Americas Region UnFranchise Owner into the left organization of their designated BDC and at least one qualified Americas Region UnFranchise Owner into the right organization of their designated BDC.
Have a current UnFranchise Management System subscription.
Maintain minimum activity requirements in their home region MPCP.
Assignment of BV: Home region UnFranchise Owners ordering products having home region BV may only assign BV downline to original BDCs of personally sponsored home region UnFranchise Owners who meet the volume placement criteria (see Assignment of BV), and these products must be shipped to a home region address. Home region UnFranchise® Owners ordering products having global BV may only assign BV downline to original BDCs of personally sponsored global UnFranchise Owners who meet the volume placement criteria (see Assignment of BV).
Global management bonuses: A global management bonus is earned in the same manner as in the “home region” MPCP; however, to qualify for a global management bonus, an UnFranchise Owner must have a BDC of a particular Americas home region on the left side of its organization and a BDC of the same Americas home region on the right side of its organization reach 5,000/5,000 in Business Volume generated in that particular Americas region and receive the respective commission in the same weekly commission cycle that the UnFranchise Owner reaches 5,000/5,000 Business Volume in the same Americas Region and receives the respective commission. Only Americas home region UnFranchise Owners in the downline that flush in the same weekly pay cycle count toward qualifying for the global management bonus.