Chapter 25: Key Definitions and Terminology

 

Market America: For the purposes of this UnFranchise Manual, Market America means Market America, Inc. and all affliates or subsidiaries of the group Market America.

Market America branded products: Products manufactured for and distributed by Market America exclusively.

Business Development Centre (BDC): Often referred to as an income centre. The placement in which BV is stored and to which commissions and bonuses are paid. A BDC is identified with an UnFranchise ID number, and extension number (e.g., -001, -002, -008, etc.). You may have multiple BDCs.

Placement: Term used to illustrate the UnFranchise Owner or BDC directly above or below a particular UnFranchise Owner or BDC in the Market Australia genealogy line. Also referred to as “linkage.”

Supervisory Entry: Initial entry of a new UnFranchise Owner with three BDCs, by submitting an initial order of at least 300 BV along with the Independent UnFranchise Owner Application and Agreement and the subscription fee.

Independent UnFranchise Owner: An Independent UnFranchise Owner is a person who has executed an Independent UnFranchise Owner Application and Agreement and has been entered into Market Australia’s computer database. This includes both Sales Representatives and UnFranchise Owners. Often referred to only as “UnFranchise Owner.”

Sales Representative: A Sales Representative is any Independent UnFranchise Owner who has not paid the subscription fee or has not renewed his/her subscription fee when applicable. A Sales Representative cannot participate in the Management Performance Compensation Plan (MPCP).

UnFranchise Owner: An UnFranchise Owner is any Independent UnFranchise Owner who has paid the subscription fee and, when applicable, renewed his/her subscription fee. An UnFranchise Owner may participate in the MPCP.

Sponsor: An active UnFranchise Owner who personally recruits a new UnFranchise Owner, as indicated on the new UnFranchise Owner’s Independent UnFranchise Owner Application and Agreement.

UnFranchise Cost: The amount of money that an UnFranchise Owner pays for products ordered from Market Australia.

Suggested Retail Price: The price the company suggests for retailing products and services. An UnFranchise Owner may charge less or more than this figure. This is also the amount on which the UnFranchise Owner pays sales tax, if applicable.

Business Volume (BV): The numeric value assigned to products and services, which accumulates towards the pay out of commission cheques.

Personal Business Volume (PBV): Business Volume placed in any of an UnFranchise Owner’s personal BDCs. This BV is used initially to qualify a BDC, for quarterly BV requirements, and/or to exercise the Monthly Accrual Option.

Group Business Volume (GBV): The collective Business Volume generated by all UnFranchise Owners within an individual’s downline organisation. This BV accumulates towards the pay out of commission cheques.

Qualified UnFranchise Owner: An UnFranchise Owner who has met all three of the following criteria: (1) accumulated at least 200 PBV in a BDC; (2) paid the subscription fee; and (3) is linked properly.
Qualified Business Development Centre: Any individual BDC that has accumulated at least 200 PBV, and the UnFranchise Owner has met all three criteria to be a qualified UnFranchise Owner.

Qualification Date (Q-date): The Friday of the week in which an UnFranchise Owner initially meets all three criteria to be a qualified UnFranchise Owner. This Q-date is the date on which both monthly and quarterly due dates are based for each UnFranchise Owner.

Monthly Accrual Option: Ability of qualified UnFranchise Owners to continue to accrue GBV month to month by assigning a minimum amount of PBV to their BDC-001 and subscribing to the UnFranchise® Management System approximately every 28 days (each monthly Q-date period). The amount of PBV necessary is determined by the UnFranchise Owner’s UnFranchise Level (UnFranchise Owner, Coordinator, or Executive Coordinator and higher).

UnFranchise AutoShip: A standing order that is shipped automatically monthly, paid for by bank draft or credit card. This order is designed to cover the PBV necessary to exercise the Monthly Accrual Option; therefore, BV is placed in the UnFranchise Owner’s BDC-001 automatically. The monthly subscription to the UnFranchise® Management System to exercise the Monthly Accrual Option can also be ordered through UnFranchise AutoShip. 

Bad Flush: The flushing (resetting to 0) of accrued GBV totals in all of an UnFranchise Owner’s personal BDCs, because the UnFranchise Owner did not submit the minimum monthly PBV and/or a monthly subscription to the UnFranchise® Management System to exercise the Monthly Accrual Option. Also referred to as “Red Flush.”

Active Independent UnFranchise Owner: An UnFranchise Owner who has met the minimum activity requirements: (1) submitting a valid quarterly UnFranchise Owner Sales Report (Form 1000), (2) ordering and correctly assigning the minimum quarterly PBV amount, and (3) submitting a valid Annual Renewal Form. This includes both Sales Representatives and UnFranchise Owners. 

Quarter: For qualified UnFranchise Owners, a period of every three months based on the qualified UnFranchise Owner’s initial Q-date (also called a “three-Q-date period”). For Sales Representatives and unqualified UnFranchise Owners, a period of every three months based on the Sales Representative’s or unqualified UnFranchise Owner’s Start Date (date the Application and Agreement was received and entered into the computer database by Market Australia) (also called a “three-start-date period”).

UnFranchise Owner Sales Report (Form 1000): Report showing proof of at least two retail sales totaling AUD$200.00. This form is due each quarter for BDC-001 and one-time-only for all other extensions of the same ID number.

Purge: The flushing (resetting to 0) of accrued GBV totals and also the purging (resetting to 0) of accumulated PBV in all of an UnFranchise Owner’s personal BDCs, because the UnFranchise Owner failed to meet minimum activity requirements. This will cause the UnFranchise Owner to be considered “inactive” and will cause BV amounts to be subtracted from GBV totals of qualified upline UnFranchise Owners.

Activate: To make a qualified BDC eligible to earn commission pay outs at the applicable GBV levels by personally sponsoring and maintaining at least one qualified UnFranchise Owner on the left of your qualified BDC, and personally sponsoring and maintaining at least one qualified UnFranchise Owner on the right of your qualified BDC. 

Override Commission: The dollars earned by UnFranchise Owners on GBV generated by UnFranchise Owners in the downline organisation.
Coordinator: An UnFranchise Owner who has earned his/her first commission cheque.

Good Flush: The flushing (resetting to 0) of accrued GBV totals in a particular BDC, because the UnFranchise Owner accrued at least 5,000 GBV on the left and at least 5,000 GBV on the right of that BDC for a weekly commission cycle.

Executive Coordinator: An UnFranchise Owner who has accumulated a minimum of 5,000 GBV on both left and right sides of a BDC and has earned that AUD$600.00 commission cheque or has had his/her first “good flush” for which a commission cheque was earned.

Leadership (Management) Bonus: In the same week that a respective BDC earns a commission cheque for reaching the 5,000/5,000 GBV compensation criteria (had a “good flush”), also having a BDC on the left side and a BDC on the right side each earn a commission cheque for reaching the 5,000/5,000 GBV compensation criteria. This bonus is an extra AUD$600.00 and is also called a “triple flush.” 

Master Coordinator: An Executive Coordinator who has earned a Leadership Bonus.