Chapter 11: Ownership and Transfer of UnFranchise Business

 


SEC. 1     BUSINESS ENTITY UNFRANCHISE BUSINESSES

A partnership, corporation, or other form of business organisation (hereafter referred to as a business entity) may be an Independent UnFranchise Owner provided documentation is submitted, including the Australian Business Number (ABN), and detailing all trustees, partners, stockholders, officers, and/or directors in the business, their respective Tax File Numbers, and their respective ownership interest. If the business entity is a corporation, a certified copy of the Articles of Incorporation must also be submitted. The partner or officer who submits the documentation must be authorised to enter into binding contracts on behalf of the business. However, an individual may not be registered in more than one UnFranchise Business of any kind. If a business entity UnFranchise Business has ownership by any person who is a citizen of any country or territory in which Market Australia is not open for business, then the principals of the business entity will be required to provide documentation showing that a majority of the ownership interest is held by citizen(s) of countries and/or territories in which Market Australia is open for business.

(A)    Initial Application: For a business entity to apply as an Independent UnFranchise Owner, it must obtain, complete, and submit to Market Australia appropriate documentation.

(B)    Change In Status: An Independent UnFranchise Owner may change status from an individual to a business entity, or from a business entity to an individual, with proper and complete documentation. Australian Independent UnFranchise Owners will have sixty (60) days from their start date to transfer their TFN (Tax File Number) to their ABN (Australian Business Number) without any fee or penalty. This grace period has been created to prevent Australian Independent UnFranchise Owners from being charged for transferring to an ABN following the 28-day waiting period for ABN issuance practised by the responsible agency in Australia. If sixty (60) days elapse after an Independent UnFranchise Owner’s start date without the transfer of a TFN to an ABN being made, any transfers made at a later time will result in the Independent UnFranchise Owner being charged the appropriate amount by Market Australia.

(C)    Eligibility: In addition, by submitting the business entity documentation, Independent UnFranchise Owners certify that no person with an interest of debt or equity in the business has had an interest in a Market Australia UnFranchise Business within two hundred seventy (270) days of the submission of the appropriate documentation (unless it is the continuation of an existing UnFranchise Business that is changing its form of doing business).

(D)    Failure to Submit Required Documentation: If an Application and Agreement is received from a business entity without the appropriate documentation, Market Australia will issue written notification to the applicant requesting such documentation. If the appropriate documentation is not received by Market Australia within sixty (60) days of the date notification was sent, the Independent UnFranchise Owner’s contract for that UnFranchise Business will be cancelled.


SEC. 2    UNFRANCHISE OWNER'S ID CHANGES

To change the ID number of an existing UnFranchise Owner (e.g., from ABN to Tax File number), Independent UnFranchise Owners must submit a letter to the Compliance Department containing the current ID number, the new ID number (copy of Federal ID certificate, if applicable), a processing fee, and the signature of the Independent UnFranchise Owner(s).



SEC. 3    UNFRANCHISE BUSINESS NAME CHANGES


(A)    Deleting Name From UnFranchise Business: To delete your name from an existing UnFranchise Business, you must submit the Name Deletion Form to the Compliance Department. The form must be signed by the Independent UnFranchise Owners whose name is to be deleted and any remaining Independent UnFranchise Owner(s) of the same UnFranchise Business (all ID numbers must be included). All signatures on the Name Deletion Form must be notarized. 


(B)    Adding Name(s) To Existing UnFranchise Businesses: Addition of names to existing UnFranchise Businesses is rarely permitted, actively discouraged, and only approved in very limited and specific instances or unique and extenuating circumstances. To request the addition of names to an existing UnFranchise Business, the requesting Independent UnFranchise Owner(s) must submit a signed letter describing 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.  Upon review and investigation, the Compliance Department will notify the requesting Independent UnFranchise Owner(s) in writing of its decision. Please allow approximately two weeks for the process to be completed.

(C)    Changing the Existing Name on an UnFranchise Business: Changing existing names of UnFranchise Businesses is rarely permitted, actively discouraged, and only approved in very limited and specific instances or unique and extenuating circumstances. To request to change the name of an existing UnFranchise Business, the requesting Independent UnFranchise Owner(s) must submit a signed letter describing the reason for the request to the Compliance Department. All persons who are listed on the UnFranchise Business must sign the letter. All signatures on the request letter must be notarized. Upon review and investigation, the Compliance Department will notify the requesting Independent UnFranchise Owner(s) in writing of its decision. Please allow approximately two weeks for the process to be completed.



SEC. 4    MARRIED COUPLES

Market Australia shall consider each married couple as a single UnFranchise Business. Married couples cannot have separate UnFranchise Businesses. If two current Market Australia Independent UnFranchise Owners become married or plan to become married, they must contact the Compliance Department for instructions, as marriage between Independent UnFranchise Owners can impact a variety of policies, including the prohibition of multiple UnFranchise Businesses.



SEC. 5    DIVORCE OR DISSOLUTION OF PARTNERSHIP

If a husband/wife divorces or if a business entity dissolves, then one of the Independent UnFranchise Owners involved must contact the Compliance Department at Market Australia regarding control of the UnFranchise Business and the right to receive commissions after the divorce or dissolution. If all parties involved agree regarding who will have control and ownership of the business after divorce or dissolution, and if the agreement is memorialised in a document signed and notarized by all parties involved, then Market Australia will honour the agreement. Market Australia cannot “split” an UnFranchise Business. If Market Australia receives reasonable notice of a dispute between the parties involved, then Market Australia will hold commissions in escrow and will not execute any control changes for the UnFranchise Business until Market Australia receives an acceptable signed and notarized agreement or a certified copy of a court order clearly resolving these matters.          



SEC. 6    MULTIPLE INDEPENDENT UNFRANCHISE OWNERS AT SAME ADDRESS

Under 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 a single household constitute a breach of contract and are grounds for termination unless prior written approval has been obtained from the company.

(A)    Approval: Independent UnFranchise Owners must apply for approval to have a second UnFranchise Business in the same household PRIOR to submitting the application. Independent UnFranchise Owners must write the company (attention: Compliance Department), state the circumstances, and receive a written approval from the company. Failure to obtain approval prior to submitting the application may result in the cancellation of the second UnFranchise Business. The company may also require the first UnFranchise Business to purchase all returned product, with BV being placed in BDC-001. Failure to obtain proper approval may also result in the termination of both UnFranchise Businesses.    

(B)    Limitations: If the Company approves an additional UnFranchise Business in the same household or address, this UnFranchise Business MAY NOT BE USED FOR ACTIVATING ANY BUSINESS DEVELOPMENT CENTRE. The second UnFranchise Business will have no sponsor indicated in Market Australia’s computer database.


SEC. 7    CHANGE OF ADDRESS/PHONE NUMBER

Independent UnFranchise Owners must notify Market Australia immediately of any address/phone number change on the “Profile Update Request” form (which is located online at UnFranchise.com), or Independent UnFranchise Owners may update their own information online or your UnFranchise® Business Account. It is advised that changes in address/phone number be submitted as early as thirty (30) days in advance, if possible. Failure to do so could place your UnFranchise Business in jeopardy regarding sponsorship requirements, multiple Independent UnFranchise Owners at the same address, missed UnFranchise Owner Magazine issues, missed shipments, etc.


SEC. 8    TRANSFER OF SPONSORSHIP

Transfer of sponsorship is rarely permitted, actively discouraged, and only approved in very specific instances of confirmed unethical activity or other extremely unique and extenuating circumstances. Maintaining the integrity of sponsorship is absolutely mandatory for the overall success of the Market Australia UnFranchise Business Development System and its Management Performance Compensation Plan. Transfers will be governed by the company as follows:

(A)    Administration: Transfer of sponsorship must be approved in writing by the Compliance Department prior to the submittal of the required documentation. If approved, all transfer requests require obtaining the notarized signatures of the Independent UnFranchise Owner’s sponsor (if active) and five consecutive active upline management (Certified Executive Coordinators or higher UnFranchise Levels) on the written transfer request. All transfer requests must be accompanied by a processing fee.

(B)    Unethical Sponsorship: In a 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 transfer of downline organisations intact or transfer of all personally sponsored Independent UnFranchise Owners. 

(C)    Cancellation/Inactivity: Cancellation and/or inactivity of the respective Independent UnFranchise Owners for more than two hundred seventy (270) days entitles the Independent UnFranchise Owners to submit a “new” Application and Agreement with a new sponsor (see 270-Day Rule). 



SEC. 9    TRANSFER OF INDEPENDENT UNFRANCHISE OWNER TO ANOTHER GENEALOGY LINE

Transfers to another genealogy line are rarely permitted and actively discouraged. Maintaining the integrity of genealogy lines is absolutely mandatory for the overall success of the UnFranchise Business Development System and its Management Performance Compensation Program. Transfers will be governed as follows:

(A)    Circumstances: A letter describing the reason for the request must be submitted to the Compliance Department. Upon review and investigation, the Compliance Department will notify the Independent UnFranchise Owners in writing of its decision. Please allow approximately two weeks for the process to be completed.

        (1)    If approved, all transfer requests require the notarized signatures of the Independent UnFranchise Owners’ five immediate and consecutive active upline management (Certified Executive Coordinators or higher) on the written transfer request. All transfer requests must be accompanied by a processing fee.

       (2)    Transfer will only be processed for the respective Independent UnFranchise Owners. All current downline Independent UnFranchise Owners shall remain in the original genealogy line, and the transferred Independent UnFranchise Owners will be unsponsored in the new genealogy line.

(B)    Accrued Group Business Volume: All accrued Group Business Volume prior to transfer will not transfer with the Independent UnFranchise Owner. Group Business Volume will begin to accrue for the week linkage to the “new” genealogy line is completed. Please allow 10 to 15 business days for completing the transfer process in the computer. Do not place Independent UnFranchise Owners in the downline until process has been completed.



SEC. 10    INDEPENDENT UNFRANCHISE OWNER BEQUESTS

Independent UnFranchise Owners may pass on their interests in their Market Australia UnFranchise Business contracts to their heirs and beneficiaries provided the intended recipient of those interests: (a) has attained the age of majority; and (b) signs and submits an Independent UnFranchise Owner Application and Agreement, thereby pledging to fulfill the obligations of the Independent UnFranchise Owner Agreement, including performing management and supervisory responsibilities. Market Australia must approve all transfers of Independent UnFranchise Owners’ contract interests. Market Australia will require documentation to substantiate the intended recipient’s right to any transfer.