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SECTION 4 – SPONSORING & TRAINING AND TERMS OF TERMINATION
4.1 Sponsoring.
FFi distributors are entitled to sponsor other individuals into their organization in the United States, its territories and other countries officially opened by FFi. Distributors are compensated only for the generation of sales of product and services and not for sponsoring new distributors into the program.
4.2 Sale/Transfer of Distributorship.
A FFi independent distributor position may be sold or transferred to a non-distributor only following a period of six (6) months from the distributor origination date. A completed and notarized Sales/Transfer form must be submitted to FFi either through mail, email or fax. All transfers are subject to a $50USD transfer fee. When such transfer is approved and accepted by FFi, any volume previously accumulated may be removed. Change in business status (individual to corporation or vice versa) also requires a completed and notarized Sales/Transfer form and is subject to a $25USD fee. All fees are payable to Forever Freedom International.
4.3 Multiple Applications.
If one applicant submits multiple Distributor Agreement forms listing different sponsors, only the first completed form to be received by FFi will be accepted. FFi reserves the right, in its sole discretion, to make the final decision with respect to all such disputes.
4.4 Placement Changes/Corrections.
Placement changes/corrections of sponsors may be requested within a period of three (3) days from the date of enrollment. Such adjustments require written permission from both the sponsor and the applicant and be directed to the Compliance Department of FFi.
4.5 Sponsor Corrections.
Sponsor changes are not permitted. However, sponsor corrections can be made if the error is reported to FFi within three (3) days of enrollment. Sponsor corrections must be requested from the current (original) sponsor, stating the reason that the correction needs to be made.
4.6 Acquisition of Business.
A distributor desiring to acquire another distributor’s business must first terminate his/her distributor status and wait a period of six (6) months from the date of the resignation notice, before becoming eligible for such purchase. All such transactions must be fully disclosed through the completion of a Sales/Transfer form submitted to FFi and is subject to FFi’s approval.
4.7 Adding of Co-Applicants.
When adding a co-applicant (either an individual or a business entity) to an existing distributorship, FFi requires both a written request and a properly executed Distributor Agreement containing both the applicant and co-applicant’s Social Security Number and signatures. The original applicant must remain party to the original Distributor Agreement. If the original distributor wants to terminate his/her distributor relationship with FFi, he/she must do so in accordance to the FFi policy. If this is not followed, the business shall be terminated upon withdrawal of the original distributor. All bonus and commission checks will be sent to the address on record for the distributor position. A co-applicant may not under any circumstance be party to another distributorship. The modification permitted within the scope of this section does not include change of sponsorship. There is a Twenty-Five Dollar ($25.00) processing fee for changes or additions.
4.8 Training Requirement.
Distributors are required to assure the adequate training of distributors they sponsor. “Adequate training” shall include, but is not limited to, education regarding the Policies and Procedures, Compensation Plan, product information, sound business practices, sales strategies, and ethical business behavior. A sponsor must maintain an ongoing, professional leadership association with distributors in his/her organization and must fulfill the obligation of performing a bona fide supervisory, sales or distributive function on the sale or delivery of product and services to the ultimate consumer.
4.9 Resignation.
Any distributor may voluntarily resign his/her distributor status by failing to renew when required or by sending written notice to the FFi Compliance Department. Resignation is effective upon receipt of such notice. A distributor who fails to renew or resigns his/her distributorship may not reapply, either individually or have a financial interest in any other distributor entity, for a period of six (6) months from the date of resignation.
4.10 Suspension.
FFi reserves the right to suspend any distributor position at any time for cause when it is deemed that the distributor may have violated the provisions of the Agreement, as they might be amended from time to time or the provisions of the applicable laws and standards of fair dealing. FFi shall make such involuntary suspension at its discretion pending the investigation of possible Policy violation. FFi will notify the distributor by postal delivery and/or email sent to the latest address listed with FFi for the distributor. In the event of a suspension, a distributor agrees to immediately cease representing himself/herself as a distributor with FFi.
During the investigation period of the suspension, any commissions, overrides or bonuses, which may be due, if any, will be held in abeyance by FFi pending resolution. Should the infraction be deemed unsubstantiated by FFi, the suspension shall be lifted and any commissions, overrides or bonuses will be credited to the distributorship. During the applicable suspension period, FFi shall have the right to prohibit the suspended distributor from purchasing products and services. However, the suspended distributor does not have the right to represent himself/herself as a distributor, or promote his/her distributor business or the products during the applicable suspension period.
4.11 Termination.
A distributor may be terminated for violating any of the terms of the Agreement. Notice of the termination, citing the reason(s) for the action shall be provided in writing to the distributor and delivered either through postal or email. Termination shall be effective as set forth therein, if a timely appeal is not provided by the distributor in accordance with the appeal procedure set forth below.
Immediately upon termination, the terminated distributor:
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Must remove and permanently discontinue the use of the trademarks, service marks, tradenames and any signs, labels, stationery or advertising referring to or relating to any FFi product, plan or program;
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Must cease representing himself or herself as a distributor of FFi;
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Loses all rights to his/her distributorship and position in the Compensation Plan and to all future commissions and earnings resulting therefrom; and
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Must take all action reasonably required by FFi relating to its materials and protection of its confidential information and intellectual property. |
FFi has the right to offset any amounts owed by a distributor to the FFi. Where state laws on termination are inconsistent with this policy, the applicable state law shall apply.
4.12 Appeal.
A terminated distributor may appeal the action by submitting a letter to the Compliance Department of FFi stating the grounds of appeal. (Note: No telephone calls will be accepted under any circumstances). FFi must receive the letter of appeal within ten (10) business days of the date of such notice of termination, or as stated in the notification. If FFi has not received the letter of appeal by the deadline date, the involuntary termination shall automatically become final.
If a distributor files a timely appeal, FFi will, at its sole discretion, review and notify the distributor of its decision. The decision of FFi shall be final and will not be subject to further review.
In the event that an appeal is denied, the termination shall remain in effect as of the date of FFi’s original notice.
4.13 Cumulative Remedies.
All rights, powers and remedies given to FFi are cumulative, not exclusive and in addition to any and all other rights provided by law. Upon a breach of the Agreement by a distributor, in addition to suspension and/or termination, FFi shall have the right to impose fines as established by FFi from time to time and/or to pursue all legal and equitable remedies to enforce its rights under the Agreement as set forth in Section 11.6. FFi will have the right to offset against commissions owed to a distributor any amounts owed to FFi by such distributor.
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