Chapter 11: Ownership and Transfer of UnFranchise Business


SEC. 1       BUSINESS ENTITY UNFRANCHISE® BUSINESS

A sole-proprietorship, partnership, corporation or other form of business organization (hereafter referred to as a business entity) may become an UnFranchise® Owner provided documentation is submitted detailing all owners, partners, stockholders, directors and/or officers in the business, their respective proof of identity and their respective ownership interest. All business entities must be registered with the Singapore Business Accounting & Corporate Regulatory Authority (“ACRA”) and submit to Market Singapore® the following business documentation:

•    Sole proprietorship: A copy of the Business Registration and Exact Information sheet and proof of identity

•    Partnership: A copy of the Business Registration and Exact Information sheet and proof of identity

•    Limited Company: A copy of the Business Registration and a copy of List of Directors and proof of identity for list of directors and shareholders

The owner, partner or officer who submits the documentation on behalf of the business entity must be authorized to enter into binding contracts. 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 America and affiliates are 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) or permanent resident(s) of countries and/or territories in which Market America and affiliates are open for business.

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

(B)    Company Registration Profile:  All new applicants must submit a copy of their Company Registration Profile within 10 calendar days of their application start date to avoid cancellation of the UnFranchise® Business.

(C)    Change in Status: An 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.

(D)    Eligibility: In addition, by submitting the business entity documentation, UnFranchise® Owners certify that no person with an interest of debt or equity in the business has had an interest in a Market Singapore UnFranchise® Business within 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).

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


SEC. 2        UNFRANCHISE® BUSINESS INFORMATION CHANGES

To change from an individual to a business entity UnFranchise® Business, UnFranchise® Owner must submit a letter to the Office of Global Field Compliance (Field Compliance) containing the business entity documentation along with the necessary individual proof of identity based on the requirement set forth on Sec. 1 above, a processing fee of S$13.00 per BDC to be charged, and the signature of the 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 Market Singapore. The form must be signed by the UnFranchise® Owner whose name is to be deleted and any remaining UnFranchise® Owner(s) of the same UnFranchise® Business (all ID numbers must be included). All signatures on the Name Deletion Form must be signed by all parties in person with Singapore ID presented and witnessed by a Market Singapore employee.


(B)    Adding Name(s) to an Existing UnFranchise® Business: Addition of names to an existing UnFranchise® Business is rarely permitted, actively discouraged, and approved only in very limited and specific instances or unique and extenuating circumstances. To request the addition of names to an existing UnFranchise® Business, the requesting UnFranchise® Owner(s) must submit a signed letter describing the reason for the request, along with a completed Name Addition Form, to the Office of Global Field Compliance Department. All signatures on the Name Addition Form must be signed by all parties in person with Singapore ID presented and witnessed by a Market Singapore employee. Upon review and investigation, the Office of Global Field Compliance Department will notify the requesting 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 an UnFranchise® Business is rarely permitted, actively discouraged, and approved only in very limited and specific instances or unique and extenuating circumstances. To request to change the name of an existing UnFranchise® Business, the requesting UnFranchise® Owner(s) must submit a signed letter describing the reason for the request to the Office of Global Field Compliance Department. All persons who are listed on the UnFranchise® Business must sign the letter. All signatures on the request letter must be signed by all parties in person with Singapore ID presented and witnessed by a Market Singapore® employee. Upon review and investigation, the Compliance Department will notify the requesting UnFranchise® Owner(s) in writing of its decision. Please allow approximately two weeks for the process to be completed.


SEC. 4         MARRIED COUPLES

Market Singapore shall consider each married couple as a single UnFranchise® Business. Married couples cannot have separate UnFranchise® Businesses. If two current Market Singapore Independent UnFranchise® Owner become married or plan to become married, they must contact the Office of Global Field Compliance Department for instructions, as marriage between 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 UnFranchise® Owners involved must contact the Office of Global Field Compliance Department at Market Singapore 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 memorialized in a document signed by all parties involved and notarized, then Market Singapore will honor the agreement. Market Singapore cannot split an UnFranchise® Business. If Market Singapore receives reasonable notice of a dispute between the parties involved, then Market Singapore will hold commissions in escrow and will not execute any control changes for the UnFranchise® Business until Market Singapore receives an acceptable signed and notarized agreement or a certified copy of a court order clearly resolving these matters.          


SEC. 6         MULTIPLE 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: UnFranchise® Owner must apply for approval to have a second UnFranchise® Business in the same household PRIOR to submitting the application. UnFranchise® Owner must write to the company (attention: Office of Global Field 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 Singapore’s computer database.

(C)    Investigation: The Company reserves the right to investigate the UnFranchise® Owners who share same phone number or same shipping address which would be deemed multiple UnFranchise® Businesses at a single household. The investigation could result in on-hold of commission payment. Any consequence arising from the action will be borne by relevant UnFranchise® Owners.


SEC. 7        CHANGE OF ADDRESS/PHONE NUMBER

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


SEC. 8       TRANSFER OF SPONSORSHIP

Transfer of sponsorship is rarely permitted, actively discouraged, and approved only in very specific instances of confirmed unethical activity or other unique and extenuating circumstances. Maintaining the integrity of sponsorship is mandatory for the overall success of the Market Singapore UnFranchise® Business Development System and its Management Performance Compensation Plan. The company will govern transfers 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 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 S$63.00 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 organizations intact or transfer of all personally sponsored UnFranchise® Owners. 

(C)    Cancellation/Inactivity: Cancellation and/or inactivity of the respective UnFranchise® Owner for more than 270 days entitles the UnFranchise® Owner to submit a new Application and Agreement with a new sponsor (see 270-Day Rule).


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

Transfers to another genealogy line are rarely permitted and actively discouraged. Maintaining the integrity of genealogy lines is mandatory for the overall success of the UnFranchise® Business Development System and its Management Performance Compensation Program. The company will govern transfers 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 in writing the UnFranchise® Owner of its decision. Please allow approximately two weeks for the process to be completed.

         (a)    If approved, all transfer requests require the notarized signatures of the UnFranchise® Owner’s 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 S$63.00 processing fee.

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

(B)    Accrued Group Business Volume: All accrued GBV prior to transfer will not transfer with the 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 UnFranchise® Owner in the downline until process has been completed.


SEC. 10       UNFRANCHISE® OWNER BEQUESTS

UnFranchise® Owner may pass on their interests in their Market Singapore UnFranchise® Business contracts to their heirs and beneficiaries provided the intended recipient of those interests: (a) has attained the age of majority (see Chapter 10, Section 4), and (b) signs and submits an Independent UnFranchise® Owner Application and Agreement, thereby pledging to fulfill the obligations of the UnFranchise® Owner Agreement, including performing management and supervisory responsibilities. Market Singapore must approve all transfers of UnFranchise® Owner contract interests. Market Singapore will require documentation to substantiate the intended recipient’s right to any transfer.