It is the UnFranchise® Owner’s responsibility to maintain accurate sales records (including retail receipts and UnFranchise Owner Sales Reports — Form 1000). The Market Australia Marketing Plan is based upon 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 seventy 70 percent 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 organisation 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. Market Australia 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 UnFranchise order to ultimate end consumers who resides in a country Market America is authorized 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 in the UnFranchise Owner’s back office. 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.
(A) Goods and Services Tax: The Goods and Service Tax (GST) is a broad-based tax of ten percent (10%) on the sales or supplies of most goods, services or other items. Market Australia is registered for GST, therefore GST is included on receipts, which serves as a tax invoice for UnFranchise® Owners. If an UnFranchise Owner is registered for GST, the UnFranchise Owner must charge GST on the sale of products to its customers. An UnFranchise Owner can claim back the GST it paid for business purchases as an Input Tax Credit. An UnFranchise Owner must have a Tax Invoice and be registered for GST in order to claim an input tax credit. UnFranchise Owners must register for GST if the annual turnover is at or above the threshold of AUD$75,000.00. To register for GST, an UnFranchise Owner can visit http://www.ato.gov.au. Market Australia recommends UnFranchise Owners consult a tax advisor prior to deciding whether to register for GST.
In order to calculate GST and issue a tax invoice, Market Australia needs to know that an UnFranchise Owner is registered for GST. Please use the GST/ABN Information Form available online at http://www.unfranchise.com.au.
(B) Australian Business Number: The Australian Business Number (ABN) is an UnFranchise Owner’s single business identifier that allows a business to meet its regulatory obligations and access information and assistance through a single-entry point to the government. Anyone carrying on an enterprise, including an individual running a business, is entitled to hold or apply for an ABN. A Market Australia UnFranchise Business is considered an enterprise; however, if the UnFranchise Owner has made less than AUD$15,000.00, the UnFranchise Owner does not need to obtain an ABN or provide it to Market Australia. An UnFranchise Owner may, however, find it advantageous to apply for an ABN; however, UnFranchise Owners should consult a tax advisor prior to applying.
This means that Market Australia will not take any money from commission cheques for the first AUD$15,000.00 that an UnFranchise Owner earns, per year. However, if an UnFranchise Owner does not have an ABN and earns more than AUD$15,000.00 per year, Market Australia will deduct forty-seven percent (47%) from the commission cheque. Once an UnFranchise Owner gives Market Australia its ABN, the UnFranchise Owner can apply to the Australian Taxation Office (ATO) to receive any withheld monies. To monitor this, Market Australia has set up its computer system to flag those UnFranchise Owners that have reached the AUD$15,000.00 threshold. Once an UnFranchise Owner reaches this threshold, Market Australia will ask the UnFranchise Owner to provide it with the ABN. If Market Australia does not obtain an ABN it will be required by law to withhold forty-seven percent (47%) of the UnFranchise Owner’s commission cheque and remit it to the ATO.
The Australian government operates a website providing specific information for small businesses and entrepreneurs at www.business.gov.au. The site is easy to navigate and covers all the responsibilities of operating a small business. Individuals can apply for an ABN at this site or through the Australia Tax Office at www.ato.gov.au.
This section is not meant to provide legal advice or counsel. Should an UnFranchise Owner have specific questions, the UnFranchise Owner should consult with an accountant, lawyer or the ATO.
UnFranchise Owners may not sell Market Australia products in retail establishments, but they may sell Market Australia products in service establishments.
(A) Definitions:
(1) Service Establishment: A service establishment is defined by Market Australia 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 Australia literature only) must be available to the end consumer at all times.
(D) Product Liability Coverage: Service establishments allowing the sale of Market Australia products must arrange (if they so choose) for their own product liability insurance, because they do not have coverage through Market Australia.
(E) UnFranchise Owner Identification: It is the responsibility of the Market Australia UnFranchise Owners supplying the service establishment with Market Australia 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.
(F) Selling to Retail Establishments: Market Australia UnFranchise Owners cannot sell Market Australia products to any retail establishments for resale. Market Australia 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 provision 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 Australia encourages UnFranchise Owners to build and manage their sales and distribution organisation locally and respond to responsible growth in any geographic location.
(A) Storage: Products marketed through Market Australia shall be stored in accordance with instructions (as applicable) provided on the product information labels.
(B) Packaging: It is not permissible for Market Australia products to be repackaged in any manner whatsoever. This is expressly forbidden by the labeling laws of state and federal agencies. Market Australia carefully complies with such laws.
(C) Product Liability Insurance: Market America, Market Australia’s parent company, and its manufacturers carry full product liability insurance as protection against claims from possible defects in their products.