POLICIES AND PROCEDURES
- These Policies and Procedures, in their present form and as amended at the sole discretion of CLUBCO DIRECT, Inc. (hereafter “Clubco Direct” or the “Company”), are incorporated into the Clubco Direct Independent Reward Member Agreement. Throughout these Policies, when the term “Agreement” is used, it collectively refers to the Clubco Direct Independent Reward Member Application and Agreement, the Policies and Procedures, the Clubco Direct Compensation Plan, and the Clubco Direct Business Entity Addendum (the Business Entity Addendum is only applicable to Reward Members who enroll as a business entity). The Company reserves the right to amend the Agreement at its discretion. Amendments shall be effective 30 days after notice and publication of the amended provisions in the Reward Member’s Back Office and posting the Amended Policies on the Company’s website or in the Reward Members Back Office but amended policies shall not apply retroactively to conduct that occurred prior to the effective date of the amendment. The continuation of an Independent Reward Member Clubco Direct business or a Reward Member’s acceptance of bonuses or commissions constitutes acceptance of any and all amendments.
- Policies and Provisions Severable. If any provision of the Agreement, in its current form or as amended, is held void or unenforceable, only the void or unenforceable portion(s) of the provision shall be severed from the Agreement and the remaining provisions shall remain in effect. The severed provision shall be reformed so that it is in compliance with the law and reflects the purpose of the original provision as closely as possible.
- Term and Renewal of Your Clubco Direct Business. The term of the Independent Reward Membership Agreement is one year from the date of enrollment. Independent Reward Members must renew their Independent Reward Membership each year and pay the annual renewal fee. The annual renewal notice will be posted in Reward Members Back Office.
- Compliance with the Law. Reward Members must not engage in any act or omission that constitutes a violation of the law.
- Business System and Product and/or Service Purchases. No person is required to purchase Clubco Direct products or services to become a Customer. To receive Reward Member benefits: Wholesale Pricing, Rewards, Personal Marketing Website, Back Office, Educational Training on both Products and Services. Access to Personalized Nutritional Programming, the Company requires an Independent Reward Member to purchase a Clubco Direct purchase a Clubco Direct Business System which is compromised of the $49 enrollment fee and a service and/or product purchase. Prospective any Independent Reward Member must be at least 18 years of age, reside in the United States or U.S. Territories or a country that Clubco Direct has officially announced is open for business, be sponsored, and submit a properly completed Independent Reward Membership Application and Agreement to CLUBCO DIRECT either in hard copy or online format.
- General Conduct. Associates shall safeguard and pro-mote the good reputation of Clubco Direct and its products, services, officers, directors, owners, employees, professionals, vendors, advisory board members, athletes, celebrities, other Independent Reward Members and must avoid all deceptive, misleading, unethical or immoral conduct or practices, and must exhibit high moral character in their personal and professional conduct. Independent Reward Member shall not engage in any conduct that may damage the Company’s goodwill or reputation. While it is impossible to specify all mis-conduct that would be contrary to this policy, and the following list is not a limitation on the standards of conduct to which all Reward Members must adhere pursuant to this policy, the following standards specifically apply to Reward Members’ activities:
- Reward Members must conspicuously identify themselves as a Clubco Direct Independent Reward Member in all advertising, tele-phone directory listings, promotional material, social media postings, websites, and other forums in which they promote any of the Clubco Direct products and/or services. Or any of Clubco Direct Branded names “VEO Natural”, “FoodnSnack” or “29 Active” products, services and the Clubco Direct business. Associates are responsible for the content of all material that they produce and all-of their postings on any social media site, as well as all posting on any social media site that they operate, own or control.
- Deceptive conduct is always prohibited. Independent Reward Members must ensure that their statements are truthful, fair, accurate, and are not misleading in any fashion;
- Independent Reward Members may not make any social media postings, or link to or from any postings or other material that is sexually explicit, obscene, pornographic, offensive, profane, hateful, threatening, harmful, defamatory, libelous, harassing, or discriminatory (whether based on race, ethnicity, creed, religion, gender, sexual orientation, physical disability, or other-wise) is graphically violent, is solicitous of any unlawful behavior, that engages in personal attacks on any individual, group, or entity, or is in violation of any intellectual property rights of the Company or any third party.
- If an Independent Reward Member’s Clubco Direct business is cancelled for any reason, the Independent Reward Member must discontinue using the Clubco Direct name, and all other Clubco Direct intellectual property, and all derivatives of such intellectual property, in postings on all social media, websites, or other promotional material.
- Independent Reward Members may not represent or imply that any state or federal government official, agency, or body has approved or endorses Clubco Direct, its program, or products.
- Independent Reward Member Created Marketing Methods, Advertising, and Promotional Material (Sales Tools). Subject to the requirements set forth in these Policies, Reward Members may create their own sales aids, presentations, advertising and promotional materials, and marketing methods (collectively “Sales Tools”). To ensure that the Sales Tools are of professional quality, are not deceptive and contain only substantiated claims, all Independent Reward Member created Sales Tools must be submitted to the Company and receive written approval before they can be used or made public. Independent Reward Members who receive written authorization from Clubco Direct to produce and publish Sales Tools may make approved Sales Tools available to other Associates free of charge if they wish, but may not sell the Sales Tools to other Clubco Direct Independent Reward Members (any sale or attempt to sell Sales Tools to another Reward Member will/shall/may result in the termination of the offending Independent Reward Members business.) Clubco Direct reserves the right to rescind approval for any approved Sales Tools, and Independent Reward Members waive all claims against Clubco Direct, its officers, directors, owners, employees, and agents for damages, expenses, costs, or remuneration of any other nature arising from or relating to such rescission. Approved Sales Tools will be posted in the Marketing Library section of Independent Reward Members “Back Offices,” and will be available for all Reward Members use. The Independent Reward Member(s) who created the Sales Tools grants Clubco Direct and its Independent Reward Members an irrevocable license to use the Sales Tools at their discretion and waives all copy-right claims and/or claims for remuneration against Clubco Direct, its officers, directors, owners, agents, and other Independent Reward Members for such posting and/or use of the Sales Tools. Approved Sales Tools will be posted in the Marketing Library section of Reward Members’ Back Office and will be made available to all Reward Members free of charge. The Independent Reward Member who submitted the Sales Tool to the Company waives all claims to remuneration for such use and grants Clubco Direct an irrevocable license to use the Sales Tools as the Company deems appropriate.
- Trademarks and Copyrights. The name “Clubco Direct”, “Clubco”, “VEO Natural” and/or other names as may be adopted by the Company are proprietary trade names, trademarks and service marks of Clubco Direct, Inc., Clubco Direct, Inc. will not allow the use of its trade names, trademarks, designs, or symbols, or any derivatives of such marks, by any person, including Clubco Direct Independent Members, in any unauthorized manner without its prior written permission. This includes and is not limited to use in any email address, website domain name, or social media name or address, or unapproved Sales Tools.
- Clubco Direct Independent Member Websites. Independent Reward Members may create their own websites to promote their Clubco Direct business or Clubco Directs products and services. However, official Clubco Direct supplied replicated websites are the only online forum through which Clubco Direct products and/or services may be sold and new Clubco Direct Independent Reward Member Memberships Application enrollments may be transacted (prohibited online forums include, but are not limited to, Independent Reward Member’s external websites, online auctions, social media and classified listings). Not with-standing the foregoing, Independent Reward Members may create an external website to promote their Clubco Direct business and Clubco Direct products and/or services, but such external site must comply with the following:
- All product and service sales are to be placed in person, or through the CLUBCO DIRECT store. No other store may be utilized.
- External websites/blogs may not take and/or process product or service orders, sales or enrollments. The external site must be directed to the Independents Reward Members replicated website to process sales and/or enrollments;
- The external site must be directed to the Independent Reward Members replicated website to process sales and/or enrollments;
- The use of the main Clubco Direct Logos is strictly prohibited on any personal websites. The use of the Clubco Direct Independent Member logo is available in your back office.
- All external websites must clearly and conspicuously identify the Independent Reward Member who is operating the external website and must clearly and conspicuously disclose that he/she is a Clubco Direct Independent Reward Member, and that the site is not the CLUBCO DIRECT official corporate web-site. Websites that do not identify the promoter of the site and/or that he/she is promoting Clubco Directs products and/or the Clubco Direct business opportunity (so called “blind” websites), are not permitted;
- Upon cancellation of an Independent Reward Membership Agreement for any reason, the former Independent Reward Member must immediately remove the external site from the internet;
- The external website must exclusively promote Clubco Direct products, services and/or Clubco Directs opportunity.
- Prior to going live with an external website, the Independent Member shall submit a beta site to the Company for re-view and receive the Company’s written authorization to use the website. Following approval, any amendments to the site must also be submitted to the Company and receive written approval before going live. Clubco Direct reserves the right to rescind approval for any approved external websites, and Independent Reward Members waive all claims against Clubco Direct, its officers, directors, owners, employees, and agents for damages, expenses, costs, or remuneration of any other nature arising from or relating to such rescission.
- Retail Outlets and Service Establishments. Clubco Direct strongly encourages the retailing and selling of its products through person-to-person contact. In an effort to reinforce this method of selling and to help provide a standard of fairness for all Clubco Direct Members, Independent Reward Members may not display or sell Clubco Direct products, services or literature, or in any other way promote the Clubco Direct opportunity, products and/or services in any retail, wholesale, ware-house, or discount establishment without prior written approval from Clubco Direct. Notwithstanding the foregoing, Independent Reward Members may display and sell Clubco Direct and/or Clubco Direct Brand products or services at professional trade shows, and display retail prices only.
- Service Related Establishments. Independent Reward Members may pro-mote and sell Clubco Direct and/or Brand products and/or services in service-related establishments. A service-related establishment is one whose primary revenue is earned by providing personal service rather than by selling products. Such establishments include offices of doctors, dentists and other health professionals; health clubs or fitness centers; beauty salons; and any other business where customer use of the establishment is controlled by Independent Reward Member or appointment. Clubco Direct reserves the right to make the final determination as to whether an establishment is service-related or is a proper place for the sale of its products.
- Change of Enroller. Clubco Direct allows a change of Enroller for three (3) working days from initial signup, as long as the request comes from the current enroller and is sent in writing to email@example.com. Subject: Please write “Enroller Change.” After the three (3) days Clubco Direct prohibits changes in enroller except as set forth in the following: only means by which an Independent Reward Member may legitimately change his/her enroller is by voluntarily canceling his/her Clubco Direct business in writing and remaining inactive for six (6) full calendar months. Following the six-calendar month period of inactivity. The former Reward Member may reapply under a new enroller. The Independent Reward Member will lose all rights to his/her former downline organization upon his/her cancellation
- In cases in which the new Independent Reward Member is enrolled or personal placement by someone other than the individual he or she was led to believe would be his or her Enroller or Placement, an Independent Reward Member may request that he or she be transferred to another organization with his or her entire marketing organization intact. Requests for transfer under this policy will be evaluated on a case-by-case basis and must be made within three (3) days from the date of enrollment. The Independent Reward Member requesting the change has the burden of proving that he or she was placed beneath the wrong enroller and/or placement sponsor. It is up to Clubco Directs discretion whether the requested change will be implemented.
- Cancellation and Re-Application. An Independent Reward Member may legitimately change organizations by voluntarily canceling his or her Clubco Direct business and remaining inactive (i.e., no purchases of Clubco Direct or Brand products and/or services for resale, no sales of Clubco Direct products, services, no sponsoring, no attendance at any Clubco Directs functions and events participation in any other form of Independent Reward Member activity, or operation of any other Clubco Direct business, no income from the Clubco Direct business) for six (6) full calendar months. Following the six-month period of inactivity, the former Independent Reward Member may reapply under a new enroller, however, the former Independent Reward Member’s Team will re-main in their original line of sponsorship.
- Placement Change. Clubco Direct allows an Enroller to change placement of Personally Enroller Independent Reward Members onetime per Independent Reward Member. Any change requests must be made within three (3) working days of initial signup and submitted in writing to firstname.lastname@example.org. Requests made after three (3) days will not be granted.
- Waiver of Claims. In cases wherein, an Independent Reward Member improperly changes his/her enroller., Clubco Direct reserves the sole and exclusive right to determine the final disposition of the downline organization that was developed by the Independent Reward Member in his/her second line of sponsorship. INDEPENDENT REWARD MEMBERS WAIVE ANY AND ALL CLAIMS AGAINST CLUBCO DIRECT, ITS OFFICERS, DIRECTORS, OWNERS, EMPLOYEES, AND AGENTS THAT RELATE TO OR ARISE FROM CLUBCO DIRECTS DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT DEVELOPS BELOW an INDPENDENT REWARD MEMBER WHO HAS IMPROPERLY CHANGED HIS/HER ENROLLER.
- Income Claims. When presenting or discussing the Clubco Direct opportunity or Compensation Plan to a prospective Clubco Direct Member, Independent Reward Members may not make income projections, income claims, income testimonials, or disclose their Clubco Direct income (including, but not limited to, the showing of checks, copies of checks, bank statements, or tax records), or the income of any other Clubco Direct Members. Nor may Independent Reward Members make “Lifestyle” income claims. A “Lifestyle” income claim is a statement or depiction that infers or states that the Independent Reward Member is able to enjoy a luxurious or successful lifestyle due to the income they earn from their Clubco Direct business. Examples of prohibited lifestyle claims include, but are not limited to, representations (either through audio or visual medium) that an Independent Reward Member was able to quit his/her job, acquire expensive or luxury material possessions, or travel to exotic or expensive destinations.
- Product Claims and Testimonials. No claims (which include personal testimonials) as to therapeutic, curative or beneficial properties of any products offered by Clubco Direct or Brands may be made except those contained in official Clubco Direct and/or Brand literature. No Clubco Direct Member may make any claim that Clubco Direct and/or Brand products are useful in the cure, treatment, diagnosis, mitigation or prevention of any diseases.
- Weight Loss Testimonials. If an Independent Clubco Direct Member makes a weight loss testimonial in connection with Clubco Direct and/or Brand products, the Reward Member must adhere to each of the following:
- The Independent Reward Member making the testimonial must clearly and conspicuously disclose that he/she is an Independent Clubco Direct Member;
- The testimonial must be true and accurate, and must disclose all additional material information that impacted his/her weight loss (e.g., changes in lifestyle or exercise habits, use of diet pills, etc.);
- The testimonial must clearly and conspicuously dis-close the generally expected results for those who go on the Clubco Direct and/or Brand program. The generally expected results are posted in the Clubco Direct Back Office.
- No testimonial may be made relating to use of the Company’s products and their impact on any weight illness suffered by the individual making the testimonial, including but not limited to diabetes claims and cholesterol reduction claims.
- Media Inquiries. Independent Reward Members must not interact with the media regarding the Clubco Direct business, products or services. All inquiries from the media, including radio, television, print, online, or any other medium, shall be directed to Clubco Directs Marketing Department.
- Participation in Other Network Marketing Programs. Clubco Direct Independent Reward Members are free to participate in other network marketing programs. However, during the term of this Agreement and for one year thereafter, with the exception of an Independent Reward Members personally sponsored downline Members, an Independent Reward Member may not directly or indirectly Recruit other Clubco Direct Members for any other network marketing business. The term “Recruit” means the direct or indirect, actual or attempted, enrollment, sponsorship, solicitation, encouragement, cross-recruit or effort to influence in any other way, another Clubco Direct Reward Member to enroll or participate in another network marketing opportunity.
- Confidential Information. “Confidential Information” includes, but is not limited to, information about Club and Reward Members that is contained in or derived from any Independent Reward Members’ respective Back Office and/or any reports issued by Clubco Direct to Reward Members to assist them in operating and managing their Clubco Direct business. This Confidential Information constitutes proprietary business trade secrets belonging exclusively to Clubco Direct and is provided to Independent Reward Members in strict confidence. Confidential Information shall not be directly or indirectly disclosed to any third party nor used for any purpose other than Reward Member’s use in building and managing his/her Independent Clubco Direct business.
- Product Inventory and Bonus Buying. Associates are not required to carry an inventory of Clubco Direct products for resale, excepting in the case of written approval for retail or wholesale service related resale purposes. All products are direct shipped from the Company to the customer or end user. In addition, bonus buying is strictly prohibited. Bonus buying includes the purchase of merchandise for any reason other than bona fide re-sale or use, or any mechanism or artifice to qualify for rank advancement or maintenance, incentives, prizes, commissions or bonuses that are not driven by bona fide product purchases by end user consumers for actual use.
- Limitations on Independent Reward Members and Household Businesses. Associates may own, operate, control, or have an interest in, recommended one Clubco Direct business per household. However, if an Independent Reward Member has TIN #, different mailing address and a different method of payment that would be deemed acceptable one Clubco Direct business in a household. A “household” is de-fined as spouses or couples, and dependent children of one or both spouses or couples, living in the same home of the spouses or Independent Reward Member of the couple, as well as dependent children of either spouse or Reward Member of the couple, while attending school away from home.
- Actions of Affiliated Parties. The term “Business Entity” shall mean any corporation, partnership, limited liability company, trust or other entity that owns or operates a Clubco Direct independent business. The term “Affiliated Party” shall mean any individual, partnership, trust, limited liability company, or other entity that has an ownership interest in, or management responsibility for, a Business Entity. A Business Entity and each Affiliated Party must comply with the Agreement. If a Business Entity and/or any Affiliated Party violates the Agreement, Clubco Direct may take disciplinary action against the Business Entity and/or against any or all the Affiliated Parties. In addition, if a household family member of a Reward Member engages in conduct that would be a violation of the Agreement, the conduct of the household family Reward Member shall be imputed to the Independent Reward Member.
- Tampering with Product Packaging. Clubco Direct and/or Brand products must be sold in their original packaging; Independent Reward Members shall not alter the original packaging or labeling.
- Non-Disparagement. Clubco Direct wants to provide its’ Members with the best products, Commission Plan, and service in the Direct-to-Consumer industry. Accordingly, we value your constructive criticisms and comments. All such comments should be sub-mitted in writing to Customer Service via email at email@example.com. While Clubco Direct welcomes constructive input, negative comments and remarks made in the field by Members about the Company, its products, services or rewards program serve no purpose other than to sour the enthusiasm of other Clubco Direct Reward Members. For this reason, and to set the proper example for their Team, Members, Associates must not disparage, demean, or make negative remarks about Clubco Direct, other Clubco Direct Members, Clubco Direct and/or Brand products, the Marketing and Commission Plan, or Clubco Directs directors, officers, or employees. Violation of the non-disparaging remarks policy will not be tolerated and is grounds for suspension and/or termination at the sole discretion of the Clubco Direct corporate.
- Negative Comments. Complaints and concerns about Clubco Direct its products and/or services should be directed to the Customer Service Department. Again, Members must not disparage, demean, or make negative remarks to third parties or other Members about Clubco Direct, its owners, officers, directors, management, other Clubco Direct Members, Clubco Direct products or services, the Marketing and Compensation plan, or Clubco Directs directors, officers, or employees. Disputes or disagreements between any Member and Clubco Direct shall be resolved through the dispute resolution process, and the Company and Members agree specifically not to demean, discredit, or criticize one another on the internet, social media or any other public forum.
- Sales Receipts. Independent Reward Members must provide their retail customers that purchase merchandise directly from the Independent Reward Member with a copy of an official Clubco Direct sales receipt at the time of the sale and advise them of the three day right to rescind the transaction, which is set forth on the receipt. Reward Members must maintain all retail sales receipts and furnish them to Clubco Direct at the Company’s request. Sales receipts can be downloaded in PDF format from the Independent Reward Members Back Office. Retail customers who purchase from an Independent Rewards Members Back Office need not be provided with a sales receipt as the receipt will automatically be sent by the Company via email at the time the order is placed.
- Adjustment to Bonuses and Commissions. When a product is returned to Clubco Direct for a refund or is repurchased by the Company, the bonuses and commissions attributable to the returned or repurchased product(s) will be deducted, in the month in which the refund is given, and continuing every pay period thereafter until the commission is recovered in the form of a “claw back”, from the upline Reward Members who received bonuses and commissions on the sales of the refunded products.
- Procedures for Returns. All merchandise must be returned by the Club/Reward Member who purchased it. All products must be returned must have a Return Authorization Number written on each carton returned. The return must be accompanied by a signed Customer Return Form which will be emailed along with the Return Authorization Number after we receive an email at firstname.lastname@example.org stating that you are making a return. A copy of the original dated sales receipt or packing slip and the unused portion of the product in its original container. Refunds require proper documentation to be processed. See our Return and Refund Policy
- Returns by Retail Customers. If an Independent Reward Member sells Clubco Direct merchandise from his/her inventory to a Retail Customer, the Independent Reward Member shall honor the 30-day money back guarantee and shall refund the Retail Customer’s money upon request and receipt of the returned merchandise.
- Return of Inventory and Aids by Members Up-on Cancellation. Upon cancellation of an Independent Reward Members Agreement, the Reward Member may return, products that he or she personally purchased from Clubco Direct (purchases from other Reward Members or third parties are not subject to refund) that are in Resalable (see Definition of “Resalable” below) condition and which have been purchased within 90 days prior to the date of cancellation. Upon receipt of Resalable products, the Independent Reward Member will be reimbursed 40% of the net cost of the original purchase price(s). Shipping charges incurred by an Independent Reward Member when the products or sales aids were purchased will not be refunded. If the purchases were made through a credit card, the refund will be credited back to the same account. Products shall be deemed “resalable” if each of the following elements is satisfied: 1) they are unopened and unused; 2) packaging and labeling has not been altered or damaged; 3) they are in a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at full price; 4) it is returned to Clubco Direct within 90 days from the date of purchase. Any merchandise that is clearly identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be resalable. No returns will be accepted after 90 days from initial purchase.
- Montana Residents. A Montana resident may cancel his or her Independent Reward Membership Agreement within 15 days from the date of enrollment and may return his or her Membership Kit for a full refund within such time period.
- Disciplinary Sanctions. Violation of the Agreement, any illegal, fraudulent, deceptive or unethical business conduct, or any act or omission by a Member that the Company reasonably believes may damage its reputation or goodwill, may result in the suspension or termination of the Member’s Clubco Direct business, and any other disciplinary measure that Clubco Direct deems appropriate to address the misconduct. In situations deemed appropriate by Clubco Direct, the Company may institute legal proceedings for monetary and/or equitable relief.
- Effect of Cancellation. An Independent Reward Member whose business is cancelled for any reason will lose all Membership rights, benefits and privileges. This includes the right to hold one’s self out as a Clubco Direct Reward Member, to sell Clubco Directs products and services and the right to receive commissions, bonuses, or other income resulting from the sales and other activities of the Members former downline sales organization. There is no whole or partial refund for Membership Kit fees or renewal fees if a Member’s business is cancelled.
- Cancellation for Inactivity. (1-year membership to all Members who fill out the Clubco Direct Membership Application) If an Independent Reward Member fails to be active by ordering a minimum Clubco Direct products and/or service for six (6) consecutive months, his/her Membership Agreement and Clubco Direct business will be placed as In-Active, downgraded to a Club Member and/or cancelled for inactivity. If an Independent Reward Member is also on the Autoship/Auto Delivery program, the Members Auto-ship order shall continue unless the Member also specifically requests that his or her Autoship/Auto Delivery Agreement also be canceled. The Member may have the ability to reactivate his/her Membership by renewing the Annual Membership-ship when it is due. Failure to renew will result in Independent Reward Member Associate-ship Termination and be downgraded to a Club Member.
- Business Transfers. Independent Reward Members in good standing who wish to sell or transfer their business must receive Clubco Directs prior written approval and transfer/sell position sheet found in the Back Office, before the business may be transferred. Requests to transfer a business must be submitted in writing to Customer Support at email@example.com. It is within Clubco Directs discretion whether to allow a business sale or transfer, but such authorization shall not be unreasonably withheld. However, no business that is on disciplinary probation, suspension, or under disciplinary investigation may be transferred unless and until the disciplinary matter is resolved. Prior to transferring a business to a third party, the Reward Member must offer Clubco Direct the right of first refusal to purchase the business on the same terms as negotiated with a third party. The Company shall have ten (10) days to exercise its right of first refusal.
- Transfer Upon an Independent Reward Members Death. A Reward Member may devise his/her business to his/her heirs. Because Clubco Direct cannot divide commissions among multiple beneficiaries or transferees, the beneficiaries or transferees must form a business entity (corporation, LLC, partnership, trust etc.), and Clubco Direct will transfer the business and issue commissions to the business entity. In the case of a business transfer via testamentary instrument, the beneficiary of the business must provide Clubco Direct with certified letters testamentary and written instructions of the trustee of the estate, or an order of the court, that provides direction on the proper disposition of the business. The beneficiary must also execute and submit to the Company a Clubco Direct Membership Application and Agreement within 30 days from the date on which the business is transferred by the estate to the beneficiary or the business will be cancelled.
- Business Distribution Upon Divorce. Clubco Direct is not able to divide commissions among multiple parties, nor is it able to divide a downline organization. Consequently, in divorce cases, any settlement or divorce decree must award the business in its entirety to one party. Clubco Direct settlement agreement or decree of the court. The former spouse who receives the Clubco Direct business must also execute and submit a new Clubco Direct Membership Application and Agreement within 30 days from the date on which the divorce becomes final or the business will be cancelled.
- Dissolution of a Business Entity. Clubco Direct is not able to divide commissions among multiple parties, nor is it able to divide a downline organization. Consequently, if a business entity that operates a Clubco Direct business dissolves, the owners of the business entity must instruct the Company on the identity of the proper party who is to receive the business. The Clubco Direct business must be awarded to a single individual or entity that was previously recognized by the Company as an owner of the business entity; the Company cannot divide the business among multiple parties or issue separate commission payments. If the business entity wishes to sell the Clubco Direct business, it must do so pursuant to Policy Number 39 above. In addition, the recipient of the Clubco Direct business must also execute and submit a new Clubco Direct Membership Application and Agreement to the Company within 30 days from the date of the dissolution of the business entity or the Clubco Direct business will be cancelled.
- International Activities. Clubco Direct Members may not sell Clubco Direct products and/or services in any international market, or conduct business activities of any nature, in any foreign country that the Company has not announced is officially open for business.
- Grievances and Complaints. When a Member has a grievance or complaint with another Member regarding any practice or conduct in relationship to their respective Clubco Direct businesses, the complaining Member should first report the problem to his or her upline Enroller/Sponsor who should review the matter and try to resolve it with the other party’s upline Enroller/Sponsor. If the matter involves interpretation or violation of Company policy, it must be reported in writing to the Customer Support at the Company. The Customer Support Department firstname.lastname@example.org will review the facts and resolve it.
- Prior to instituting litigation, the parties shall meet in good faith and attempt to resolve any dispute arising from or relating to the Agreement through non-binding mediation. One individual who is mutually acceptable to the parties shall be appointed as mediator. The mediator’s fees and costs, as well as the cost of the mediation facilities, shall be divided equally between the parties. Each party shall pay its portion of the anticipated shared fees and costs at least ten (10) days in advance of the mediation. Each party shall pay their own attorney’s fees, costs, and individual expenses associated with conducting and attending the mediation. Mediation shall be held in the City of Salt Lake City, Utah, and shall last no more than two (2) business days. Clubco Direct shall not be obligated to engage in mediation as a prerequisite to disciplinary action against an Independent Reward Member.
- Involuntary Cancellation. An Independent Reward Members violation of any of the terms of the Agreement, including any amendments that may be made by Clubco Direct in its sole discretion, including the involuntary cancellation of his or her Membership Agreement. Cancellation shall be effective on the date on which written notice is mailed, emailed, faxed, or delivered to an express courier, to the Clubco Direct Members last known address, email address, or fax number, or to his/her attorney, or when the Clubco Direct Member receives actual notice of cancellation, whichever occurs first. Clubco Direct reserves the right to terminate all Clubco Direct Membership Agreements upon thirty (30) days written notice if it elects to: (1) cease business operations; (2) dissolve as a corporate entity; or (3) terminate distribution of its products and/or services via direct selling.
- Voluntary Cancellation. A participant Clubco Direct has a right to cancel at any time, regardless of reason. Cancellation must be submitted in writing to the Company at its principal business address or the Member may submit his/her cancellation through his/her Back Office. If written notice is sent to the company, it must include the Members signature, printed name, address, and Membership I.D. Number/username. If a Member is also on the Company’s Autoship/Auto Delivery Program, the Member’s Autoship/Auto Delivery Agreement shall continue in force unless the Member also specifically requests that it also be canceled.
Active Customer —A Customer who purchases Clubco Direct products and/or services during a given reward cycle, but who is not a Clubco Direct Associate Rank.
Active Associate—A Member who satisfies the minimum Personal Sales Volume requirements, as set forth in the Clubco Direct Commission
Plan, to ensure that he or she is eligible to receive bonuses and rewards.
Active Level —the term “active level” refers to the current level of an Associate, as determined by the Clubco Direct Commission Plan, for any commission period. To be considered “active” relative to a particular level, a Member must meet the criteria set forth in the Clubco Direct Commission Plan for his or her respective level. (See the definition of “Level” below.)
Affiliated Party -A shareholder, Associate, partner, manager, trustee, or other parties with any ownership interest in, or management responsibilities for, a Business Entity.
Agreement -The contract between the Company and each Member this includes the Clubco Direct Membership Application and Agreement, the Clubco Direct Policies and Procedures, the Clubco Direct Commission Plan, and the Business Entity Form (applicable only to Members that are business entities), all in their current form and as amended by Clubco Direct in its sole discretion. These documents are collectively referred to as the “Agreement.”
Business System —a selection of Clubco Direct training materials, business support literature, a Clubco Direct replicated website, a Reward Members Back Office, Membership fee, products and/or services that each new Reward Member is required to purchase to become check qualified.
Cancel —the termination of a Reward Members business. Cancellation may be either voluntary, involuntary, through non-renewal or inactivity.
Enroller/ Sponsor —A Member who Enrolls (sponsors) another Member into the Company.
Group Organization or Team —each one of the individuals enrolled immediately underneath you and their respective marketing organizations represent one “leg” in your marketing organization.
Team or Group Volume —The value of Clubco Direct products and services sold by a Members Team Organization. Team Reward Volume includes the Personal Reward Volume. (Business Systems and sales aids have no Sales Volume.)
Household —Spouses and dependent children living at or doing business at the same address.
Immediate Household —Heads of household and dependent family Associates residing in the same house.
Level —The layers of Team Members and customers in a Members Marketing Organization. This term refers to the relationship of a Members relative to an Enroller/Sponsor, determined by the number of Members between them who are related by placement. For example, if A enrolls/sponsors B, who enrolls/sponsors C, who enrolls/sponsors D, who enrolls/sponsors E, then E is on A’s fourth level.
Official Clubco Direct Material —Literature, audio or video tapes, web-sites, and other materials developed, printed, published and/or distributed by Clubco Direct for Members use.
Personal Production —Moving Clubco Direct products or services to an end consumer for actual use.
Placement — Where a new Reward Member spot is placed into the organization.
Reward Volume (RV)—The value of products and/or services purchased in a month by a Member; (2) by the Members personal Customers who purchase from the Members replicated website or who are Club Members/Preferred Customers rank volume.
The Accumulation of Recruit —For purposes of Clubco Directs Conflict of Interest Policy (Section 3.8), the term “Recruit” means the actual or attempted enrollment, sponsorship, solicitation, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another Clubco Direct Member or Club Customer to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity.
Resalable —Products and Sales aids shall be deemed “resalable” if each of the following elements is satisfied: 1) they are unopened and unused; 2) packaging and labeling has not been altered or damaged; 3) they are in a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at full price; 4) it is returned to Clubco Direct within one year from the date of purchase. Any merchandise that is clearly identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be resalable.
Retail Customer —An individual or entity that purchases Clubco Direct products or services from a Member, but who is not a Member.
Retail Sales –Sales to a Retail Customer.
Sponsor —The Member who enrolls a new Reward Member or Club Customer is listed as the enroller on the Members Clubco Direct Membership Application and Agreement.
Title —The highest Level a Reward Member has achieved in the Clubco Direct Commission Plan at any time.
Support line —This term refers to the Member or Members above a Members in a placement line up to the Company. Conversely stated, it is the line of enrollers/sponsors that links any Member to the Company