Chapter 11: UnFranchise Owner Registration Procedure

Explains registration procedures for business entities and individuals in accordance with applicable regulations in Indonesia.

SECTION 1     BUSINESS ENTITY UNFRANCHISE BUSINESS

A partnership, corporation or other form of business organization (hereinafter referred to as a business entity) may become an UnFranchise Owner, provided it submits documentation detailing all trustees, partners, shareholders, officers and directors in the business, their parent business number (NIB) or Company NPWP (Taxpayer Identification Number), and company deed of establishment and amendments. If the business entity is a corporation, a certified copy of the Articles of Association must also be submitted. The partner or official submitting the documentation must be authorized to enter into a binding contract on behalf of the organization. However, an individual may not be registered with more than one UnFranchise Business of any kind. If the UnFranchise Business entity is owned by any person who is a citizen of a country or territory where Market Indonesia is not open for business, then the principal of the business entity will be required to provide documentation showing that the majority ownership interest is owned by the citizen(s) of that country or regions where Market Indonesia is open for business.

  1. Initial registration: In order for a business entity to apply as an UnFranchise Owner, it must obtain, complete and submit the appropriate documentation to Market Indonesia.

  2. Status change: An UnFranchise Owner can change status from individual to business entity, or from business entity to individual, with proper and complete documentation.

  3. Eligibility: In addition, by submitting business entity documentation, the UnFranchise Owner declares that no person has any debt or equity interest in the Market Indonesia UnFranchise Business venture within 270 days of submission of the appropriate documentation (unless it is a continuation of an existing UnFranchise Business that is changing its form of business).

  4. Failure to submit required documentation: If an Application and Agreement is received from a business entity without appropriate documentation, Market Indonesia will issue a written notification to the applicant requesting such documentation. If Market Indonesia does not receive the appropriate documentation within 60 days from the date the notification is sent, the UnFranchise Owner's contract for that UnFranchise Business will be canceled.

SECTION 2     CHANGE IN UNFRANCHISE BUSINESS IDENTITY NUMBER

To change an existing UnFranchise Business identification (ID) number (for example, from a Social Security number to a State ID number), the UnFranchise Owner must send to the Compliance Department a letter containing the current ID number, the new ID number (a copy of the State ID certificate, if applicable), the processing fee of Rp150,000,- per BDC to be changed and the signature of the UnFranchise Owner.

SECTION 3     UNFRANCHISE BUSINESS NAME CHANGE

  1. Remove a name from a Business: To remove your name from an existing UnFranchise Business, you must submit a Name Removal Form to Market Indonesia. The form must be signed by the UnFranchise Owner whose name is to be removed and the remaining UnFranchise Owners of the same UnFranchise Business (all ID numbers must be included). All signatures on the Name Removal Form must be notarized.

  2. Adding a name to an existing UnFranchise Business: Adding a name to an existing UnFranchise Business is rarely permitted, is not recommended, and will only be approved in very limited and specific cases or unique and special circumstances. To request a name addition to an existing UnFranchise Business, the requesting UnFranchise Owner must submit a signed letter explaining the reason for the request, along with a completed Name Addition Form, to the Compliance Department. All signatures on the Name Addition Form must be notarized. After review and inspection, the Compliance Department will notify the UnFranchise Owner in writing of its decision. Please allow approximately two (2) weeks to complete this entire process.

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  4. Changing the name of an existing UnFranchise Business: Changing the name of an existing UnFranchise Business is rarely permitted, is not recommended and is only approved in very limited and specific cases or unique and special circumstances. To request a change to the name of an existing UnFranchise Business, the requesting UnFranchise Owner must submit a signed letter explaining the reasons for the request to the Compliance Department. Everyone registered with the UnFranchise Business must sign the letter. All signatures on the request letter must be notarized. After review and inspection, the Compliance Department will notify UnFranchise Owner in writing of its decision. Please allow approximately two (2) weeks to complete this entire process.

SECTION 4     MARRIED COUPLE

Market Indonesia will consider every married couple as one UnFranchise Business. Married couples cannot own separate UnFranchise Businesses. If two Market Indonesia Independent UnFranchise Owners are currently married or planning to marry, they should contact the Compliance Department for guidance, as marriage between UnFranchise Owners may impact various policies, including the prohibition of multiple UnFranchise Businesses. If the UnFranchise Owner is married, a copy of the UnFranchise Owner's marriage certificate must be submitted to the Compliance Department in order to add the UnFranchise Owner's spouse to the UnFranchise Business.

SECTION 5     DIVORCE OR ENDING OF A PARTNERSHIP

If a married couple divorces or the business entity is dissolved, then one of the UnFranchise Owners involved must contact the Compliance Department at Market Indonesia regarding control of the UnFranchise Business and the right to receive commissions upon divorce or dissolution. If all parties involved agree regarding who will have control and ownership of the business after a divorce or dissolution, and if the agreement is stated in a document signed and notarized by all parties involved, then Market Indonesia will honor the agreement. Market Indonesian cannot share/divide the UnFranchise Business. If Market Indonesia receives reasonable notice of a dispute between the parties involved, Market Indonesia will place the commission in an escrow account and will not make any change of control for UnFranchise Business until Market Indonesia receives a signed and notarized agreement or official copy from the court which clearly provides a decision to resolve this issue.

SECTION 6     MULTIPLE UNFRANCHISE OWNERS WITH THE SAME ADDRESS

Pursuant to the Terms and Conditions of the Independent UnFranchise Owner Application and Agreement, there may only be one UnFranchise Business per address (household). Multiple UnFranchise Businesses in one household constitutes a breach of contract and is grounds for termination unless prior written approval is obtained from the Company.

  1. Approval: An UnFranchise Owner must apply for approval to have a second UnFranchise Owner Business in the same home prior to submitting the application. The UnFranchise Owner must write to the Company (attention: Compliance Department), state the circumstances and receive written approval from the Company. Failure to obtain approval prior to submitting an application may result in cancelation of the second UnFranchise Business. The Company may also require the first UnFranchise Business to purchase all returned products, with the BV placed at BDC-001. Failure to obtain proper approval may also result in termination of both UnFranchise Businesses.

  2. Restrictions: If the Company approves an additional UnFranchise Business at the same home or address, this UnFranchise Business CANNOT BE USED TO ACTIVATE ANY BUSINESS DEVELOMENT CENTER. The second UnFranchise Business will not have a sponsor in the Market Indonesia computer database.

SECTION 7     CHANGE OF ADDRESS/TELEPHONE NUMBER

UnFranchise Owners must immediately notify Market Indonesia of any change of address or telephone number on the “Address Change Request Form” (located online in their UnFranchise.com account), or UnFranchise Owners may update their own information online in their UnFranchise.com account. It is recommended that changes to address or telephone number be requested at least 30 days in advance, if possible. Failure to do so may place your UnFranchise Business at risk regarding sponsorship requirements, multiple UnFranchise Owners at the same address, not getting a copy of the UnFranchise Owner Magazine, delivery failures, etc.

SECTION 8     SPONSORSHIP TRANSFER

Sponsorship transfers are rarely permitted, actively discouraged and only approved in very specific cases of confirmed unethical activity. Maintaining sponsorship integrity is absolutely necessary for the overall success of the Market Indonesia UnFranchise® Business Development System and its Management Performance Compensation Plan. The transfer will be arranged by the Company as follows:

  1. Administration: The transfer of sponsorship must be approved in writing by the Compliance Department prior to submission of required documentation. If approved, all transfer requests require the notarized signatures of the UnFranchise Owner's sponsor (if active) and five consecutive, active upline management UFOs (Executive Coordinator or higher UnFranchise Level).

  2. Unethical sponsorship: In the case of confirmed unethical sponsorship, the Company will review the situation and take appropriate action at its sole discretion regarding sponsorship and genealogy adjustments. Such actions may include but are not limited to the transfer of the entire downline organization or the transfer of all personally sponsored UnFranchise Owners.

  3. Cancellation/Inactivity: The cancelation and/or inactivity of an UnFranchise Owner for more than 270 days entitles the UnFranchise Owner to submit a new Application and Agreement with a new sponsor (see 270-Day Rule).

SECTION 9     TRANSFER OF UNFRANCHISE OWNER TO ANOTHER LINE OF LEADERSHIP

Transfers to other lineages are rarely permitted and are actively discouraged. Maintaining the integrity of the leadership line is absolutely necessary for the overall success of the UnFranchise Business Development System and Performance Management Compensation Plan. Transfers will be managed as follows:

  1. Special circumstances: A letter explaining the reasons for the request must be submitted to the Compliance Department. After review and investigation, the Compliance Department will notify the UnFranchise Owner in writing of its decision. Please allow approximately two (2) weeks for this process to be completed.

    1. If approved, all transfer requests require the notarized signature of the UnFranchise Owner's five consecutive, active and direct upline management (Executive Coordinator or higher) on the written transfer request. All transfer requests must be accompanied by a processing fee of Rp750 thousand.

    2. All existing downline UnFranchise Owners will remain in the original leadership line, and transferred UnFranchise Owners will be unsponsored in the new leadership line

  2. Accried Group Business Volume: All GBV accrued prior to transfer will not be transferred with the UnFranchise Owner. GBV will begin to accrue the week the link to the new leadership line is completed. Please allow 10–15 business days to complete the transfer process in the computer. Do not place an UnFranchise Owner in the downline until the process is complete.

SECTION 10     UNFRANCHISE OWNER INHERITANCE

UnFranchise® Businesses are not willable and may not be transferred through an estate, trust, inheritance, or any other testamentary instrument upon the death of the UnFranchise® Owner (UFO). Upon the passing of a UFO, the UnFranchise® Business will not automatically transfer to any heir, beneficiary, or designated successor.

Limited Exception: In limited and extraordinary circumstances, the Company may, at its sole and absolute discretion, consider a request to transfer an UnFranchise® Business to a designated individual, provided all of the following conditions are met:

  1. Active Participation Criteria: The proposed recipient must demonstrate a verifiable and consistent record of active participation in the UnFranchise® Business, including but not limited to:

    1. Regular and ongoing engagement in day-to-day business-building activities including national and local GMTSS events.

    2. Demonstrated knowledge of the Market America business model, compensation plan, products, and services.

    3. Active involvement in retailing and team development.

  2. Event Attendance Criteria: The proposed recipient must have a documented history of attendance at both:

    1. Company-Sponsored Events — Including but not limited to International Convention, Leadership School, and any other corporate-level events or training sessions hosted by Market America.

    2. Local Events — Including but not limited to Local Seminars, NUOT Trainings, Basic 5 trainings, home meetings, team-building events, and any regionally organized business functions.

  3. Demonstrated Ability to Grow the Business: The proposed recipient must provide evidence of their ability to independently grow and sustain an UnFranchise® Business. This may be evaluated based on:

    1. Historical Business Volume (BV) generation and growth trends.

    2. Track record of personal and team retail sales.

    3. Achievement of UnFranchise Levels, certifications, pin levels, or other recognitions within the Market America Business.

    4. A submitted Business Growth Plan outlining the proposed recipient's strategy for continuing and expanding the UnFranchise® Business.

  4. Review and Approval Process: All exception requests must be submitted in writing to fieldcompliance@marketamerica.com within 60 days of the UFO's passing. The request must include:

    1. A completed and newly signed Independent UnFranchise Owner Application and Agreement.

    2. Proof of the proposed recipient's identity and relationship to the deceased UFO.

    3. Documentation supporting all eligibility criteria outlined above.

    4. Any relevant legal documents, including but not limited to death certificate and the Last Will and Testament or Trust evidencing the intended recipient.

  5. Company Review: Upon receipt of a complete request, the Company will conduct a thorough review, which may include:

    1. Verification of event attendance records.

    2. Analysis of business performance data.

    3. Interviews with upline leadership, team members, or other relevant parties.

    4. Any additional investigation deemed necessary.

  6. Decision: The Company reserves the sole and absolute right to approve or deny any transfer request. All decisions are final and non-appealable. Approval of one exception does not establish precedent or guarantee approval of any future requests.

  7. Timeline: The Company will endeavor to render a decision within 60 days of receiving a completed submission. The Company reserves the right to extend this timeline as needed.

  8. Denial of Transfer and Business Disposition: In the event that no exception request is submitted, or a submitted request is denied, the Company shall disperse any remaining commissions earned prior to the date of the UFO's passing and not yet disbursed to the deceased UFO's estate in accordance with applicable law.

  9. Prohibited Actions:

    1. No UFO may represent, promise, or guarantee to any individual that an Unfranchise® Business is willable or inheritable.

    2. Any attempt to circumvent this policy through unauthorized assignment, side agreements, or other means will be considered a violation of the Independent UnFranchise Owner Application & Agreement and may result in disciplinary action, up to and including termination of the UnFranchise® Business.