It is the UnFranchise® Owner’s responsibility to maintain accurate sales records (including retail receipts and UnFranchise Owner Sales Reports — Form 1000). The Marketing Plan is based on retail sales to the end consumer; therefore, all forms of stockpiling or inventory loading are prohibited. Products are offered to UnFranchise Owners only for sale to consumers and, at the UnFranchise Owner’s election, personal consumption.
A minimum of 70% of products ordered by an UnFranchise Owner must be sold to retail customers.
(A) Enforcement: Executive Coordinators are responsible for enforcing this policy in their organisations and may be required to buy inventory that is not sold by their downline within 90 days of purchase, as it violates the 70 Percent Rule. The Company enforces this provision for the purpose of complying with various legal and regulatory requirements that apply to the company’s operations. This policy is not an alternative to the regular product return policy (see Return Policies).
(B) Documentation: The Company requires each UnFranchise Owner to furnish documentation of retail sales upon request.
(C) Restricted Order Status: As part of a compliance measure or as a result of a Corrective Action Board Decision, an UnFranchise Owner may be placed on Restricted Order Status. After receiving this notification, the UnFranchise Owner will be required to submit documentation proving that he/she has sold 70% of their next order to ultimate end consumers who reside in a country in which Market America is authorised and licensed to conduct its complete business model prior to submitting a new order. The 70% is based on the Suggested Retail Price of the products and excludes tickets, business support materials, taxes and/or shipping.
The documentation must be uploaded to the UnFranchise Owner’s UnFranchise.com account. Each sales receipt must include the name, address, phone number and email address of the UnFranchise Owner’s customer. This Restricted Order Status will remain in effect until notified otherwise by the Field Compliance department.
VAT is charged on all sales of products and services. VAT is included to the product price.
UnFranchise Owners may not sell Market United Kingdom products in retail establishments, but they may sell Market United Kingdom products in service establishments.
(A) Definitions:
(1) Service Establishment: A service establishment is defined by Market United Kingdom as a business that earns 50% or more of its gross income from a related service. Examples of these service establishments include but are not limited to: beauty salons, tanning salons, chiropractic and physician’s offices, automotive service centres, gymnasiums, dance and aerobic studios, and car washes.
(2) Retail Establishment: A retail establishment is any business that earns 50% or more of its gross income from products purchased from “the shelf” or directly accessible to the end consumer, such as behind the counter for purchase. Examples of these retail establishments include but are not limited to: health food, automotive parts, grocery, hardware stores, drug stores and pharmacies. Retail establishments range from privately owned “mom and pop” stores to franchised convenience stores and chain store retail establishments.
(B) Merchandising: Products and services may be merchandised on counter or shelf displays in any area of the service establishment. NO products may be sold or stored in a retail store of any kind.
(C) Representation: Product information (as outlined by Market United Kingdom literature only) must be available to the end consumer at all times.
(D) UnFranchise Identification: It is the responsibility of the Market United Kingdom UnFranchise Owner supplying the service establishment with Market United Kingdom products to provide a visible marking or label containing their name, address and phone number on the product to answer customer questions and provide product information.
(E) Selling to Retail Establishments: Market United Kingdom UnFranchise Owners cannot sell Market United Kingdom products to any retail establishments for resale. Market United Kingdom UnFranchise Owners cannot sell to a jobber, independent representative or third party to sell to any retail establishment. Company-approved literature only may be placed in retail establishments.
UnFranchise® Owners are free to sell products at any price they choose subject to the provisions of Chapter 20, Section 7. The Suggested Retail Price is only a guideline provided by the company for comparable products in the retail marketplace.
There shall be no exclusive territories for marketing, sales or distribution purposes, nor shall any UnFranchise Owner imply or state that he/she has an exclusive territory. Market United Kingdom encourages UnFranchise Owners to build and manage their sales and distribution organisations locally and respond to responsible growth in any geographic location.
(A) Storage: Products marketed through Market United Kingdom shall be stored in accordance with instructions (as applicable) provided on the product information labels.
(B) Packaging: It is not permissible for Market United Kingdom products to be repackaged or relabelled in any manner whatsoever.
(C) Product Liability Insurance: Market United Kingdom carries product liability insurance as protection against claims from possible defects in its products.