It is the UnFranchise Owner’s responsibility to maintain accurate sales records (including retail receipts and UnFranchise Owner Sales Reports – Form MY1000). The Market Malaysia 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 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 organization 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 Malaysia 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 each quarter and also 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 percent of their next UnFranchise order to ultimate end consumers who resides in a country Market Malaysia is authorized and licensed to conduct its complete business model prior to submitting a new order. The 70 percent 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.
UnFranchise Owners may not sell Market Malaysia products in retail establishments, but they may sell Market Malaysia products in service establishments.
(A) Definitions:
(1) Service Establishment: A service establishment is defined by Market Malaysia 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, chiropractic and physician’s offices, automotive service centers, gymnasiums, dance and aerobic studios, and dry cleaners.
(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, grocery, hardware stores and pharmacies. Retail-establishments range from privately-owned 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 only by Market Malaysia literature) must be available to the end consumer at all times.
(D) Product Liability Coverage: Service establishments allowing the sale of Market Malaysia products must arrange (if they so choose) for their own product liability insurance, because they do not have coverage through Market Malaysia.
(E) UnFranchise Owner Identification: It is the responsibility of the Market Malaysia UnFranchise Owner supplying the service establishment with Market Malaysia 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 Malaysia UnFranchise Owners cannot sell Market Malaysia products to any retail establishments for resale. Market Malaysia UnFranchise Owners cannot sell to a jobber, independent representative or third party to sell to any retail establishment. Only company-approved literature 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 he/she has an exclusive territory. Market Malaysia encourages UnFranchise Owners to build and manage their sales and distribution organization(s) locally and respond to responsible growth in any geographic location.
(A) Storage: Products marketed through Market Malaysia shall be stored in accordance with instructions (as applicable) provided on the product information labels.
(B) Packaging: It is not permissible for Market Malaysia products to be repackaged in any manner. The current packaging is carried out based on compliance with the various requirements under Malaysia Laws and Market Malaysia carefully complies with those requirements.
Last Modified :06/18/2018 11:37:39 AM EDT