It is the UnFranchise® Owner’s responsibility to maintain accurate records of UnFranchise Owner transactions (including UnFranchise Owner Sales Reports — Form 1000). The Market America Marketing Plan is based upon sales to the end consumer; therefore, all forms of stockpiling or inventory loading are prohibited.
A minimum of 70 percent of the orders contributing to the UnFranchise Owner’s commission must be placed by or on behalf of end customers who are not participating in Market America’s Marketing Plan.
(A) Enforcement: Executive Coordinators are responsible for enforcing this policy in their organization. Market America enforces this provision for the purpose of complying with various legal 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 Onwer to furnish documentation proving compliance to this section upon request.
Some Market America products may be subject to tax in some jurisdictions in which UnFranchise Owners are developing their UnFranchise Businesses. UnFranchise Owners and/or end consumers must be solely responsible for the payment of such taxes and/or duties. You may want to consult your local government.
(A) Compliance: Each UnFranchise Owner shall comply with all state, provincial and local taxes and regulations governing the sale of Market America products in the jurisdiction where the sale is completed.
UnFranchise Owners may not sell Market America products in retail establishments, but they may promote Market America products in service establishments.
(A) Definitions:
(1) Service Establishment: A service establishment is defined by Market America as a business that earns 50 percent 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 centers, gymnasiums, dance and aerobic studios, and car washes.
(2) Retail Establishment: A retail establishment is any business that earns 50 percent 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 America literature only) must be available to the end consumer at all times.
(D) UnFranchise Owner Identification: It is the responsibility of the Market America UnFranchise Owners supplying the service establishment with Market America products to provide a visible marking or label containing their name, address and phone number on the product for customer questions and to provide product information.
(E) Selling to Retail Establishments: Market America UnFranchise Owners cannot sell Market America products to any retail establishments for resale. Market America 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 market place.
There shall be no exclusive territories for marketing, sales or distribution purposes, nor shall any Independent UnFranchise Owner imply or state that s/he has an exclusive territory. Market America encourages UnFranchise Owners to build and manage their sales and distribution organization locally and respond to responsible growth in any geographic location.
(A) Storage: Products marketed through Market America shall be stored in accordance with instructions (as applicable) provided on the product information labels.
(B) Packaging: It is not permissible for Market America products to be repackaged in any manner whatsoever. This is expressly forbidden by the labeling laws of state and federal agencies. Market America carefully complies with such laws.
(C) Product Liability Insurance: Market America carries product liability insurance as protection against claims from possible defects in its products.