POLICIES AND PROCEDURES
- Mutual Commitment Statement
The goal of Farmasi US LLC (doing business as “Farmasi,” and/or referred to as “We,” “Us,” “Our,” or simply the “Company”) is to provide exceptional products and services to consumers. This is only made possible with the support of and passion by its members of the Farmasi sales organization (known as “Entrepreneurs”). To achieve sustained success as a business, Farmasi hereby pledges aid and support to all its Entrepreneurs in return for such mutual commitment by these Entrepreneurs to the Company in the effort to reach and support all interested consumers.
- Purpose of Policies and Effective Date
- To clearly define the relationship that exists between Us and you, and to explicitly set a standard for acceptable business conduct, we now put forth these Policies and Procedures.
- As an Entrepreneur, you are required to comply with:
All the terms and conditions set forth in the Entrepreneurs Agreement, which We may amend from time to time in Our sole and absolute discretion.
All federal, state, and/or local laws governing your Farmasi business; and
Lastly, these Policies and Procedures.
C. An Entrepreneur must review the information in these Policies and Procedures carefully. Should you have any questions regarding a policy or rule, we encourage you to seek an answer from your Sponsor (as defined in the Glossary of Terms herein). Should your Sponsor not provide the appropriate clarification, you may contact the Farmasi Compliance Department.
D. These Policies and Procedures shall become effective as of January 3, 2019 (“Effective Date”).
1.3 These Policies and Procedures and the Compensation Plan Incorporated into the
A. Throughout these Policies, when the term “Agreement” is used, this collectively refers to the
Entrepreneur Agreement, these Policies and Procedures, and the Company Compensation Plan.
B. It is the responsibility of a Sponsoring Entrepreneur to provide the most current version of these
Policies and Procedures and the Company Compensation Plan to each applicant prior to any execution of an Entrepreneur Agreement.
1.4 Changes, Amendments, and Modifications
A. Because federal, state, and local laws, as well as the business environment, periodically change, we reserve the right to amend the Agreement from time to time. Additionally, the Company may change and amend the prices on all its product at any time in the future. Please note, this provision does NOT apply to the arbitration clause found in Section 12, which can only be modified via mutual consent.
- Any such amendment, change, or modification shall be effective immediately upon notice by one of the following methods:
Posting on the official Corporate website.
Electronic mail (e-mail); or
In writing through Company newsletters or corporate communication channels.
- Understand that any continued business, ordering, acceptance of a commission or bonus payout, or other benefit received by an Entrepreneur pursuant to this Agreement constitutes the acceptance of this Agreement in whole with all amendments.
Farmasi shall not be responsible for delays or failures in performance of its obligations when such failure is due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, transportation difficulties, riot, war, fire, and/or weather, curtailment of a source of supply, or government decrees or orders.
2.0. BASIC PRINCIPLES
2.1. Becoming an Entrepreneur
As a Farmasi Entrepreneur, you will be a part of a team of passionate, driven, like-minded individuals, all working towards the common goal of achieving emotional, personal, and financial success. To become an Entrepreneur, you must comply with the following requirements:
Be of the age of majority (not a minor) in your state of residence.
Reside or have a valid address in the United States or other U.S. territory.
Have a valid taxpayer identification number (i.e. Social Security Number, Federal Tax ID Number, ITIN, etc.).
Submit a properly completed and signed (via hard copy or electronic signature) Entrepreneur Agreement.
Not be a Farmasi employee, or the spouse or relative of a Company employee living in the same household; and
The purchase of a Farmasi Starter Kit.
2.2. Registration and Enrollment of an Entrepreneur
- You can submit your Entrepreneur Agreement through mail or the Farmasi website (http://www.farmasius.com). The application must be received within five (5) business days of your enrollment for you to receive Entrepreneur benefits. If the Entrepreneur Agreement is not received within five (5) business days, your Entrepreneur account will remain on temporary hold until We receive the Agreement.
- Farmasi reserves the right to require signed paperwork for any account, regardless of origin.
- Signed documents, including, but not limited to Entrepreneur Agreements, are legally binding contracts which must not be altered, tampered with, or changed in any manner after execution. False or misleading information, forged signatures, or alterations to any document, including business registration forms, made after a document has been executed may lead to sanctions, up to and including involuntary termination of an Entrepreneur’s Farmasi business.
2.3. Rights Granted
Farmasi hereby grants to you as an Entrepreneur the non-exclusive right, based upon the terms and conditions contained in the Entrepreneur Agreement and these Policies and Procedures, to the following:
The ability to purchase, sell and promote Farmasi products and services.
Sponsor new Entrepreneurs and Customers in the United States, building a sales organization and earning commissions of the personal and downline sales of Farmasi products.
2.4. Identification Numbers
- Each Entrepreneur is required to provide his or her Social Security Number, or Federal Tax Identification Number, if located in the United States or any of its territories, to the Company on the Entrepreneur Agreement. We reserve the right to withhold commission payments from any Entrepreneur who fails to provide such information or who provides false information.
- Upon enrollment, we will provide you a Farmasi Identification Number. This number will be used to place orders, structure organizations, and track commissions and bonuses.
2.5. Business Entities
- A corporation, partnership, LLC, or trust (collectively referred to as a “Business Entity”) may apply to be an Entrepreneur. This Farmasi business and position will remain temporary until the submission of proper Business Entity documents. As examples of proper documents, we expect a Business Entity application to submit some of the following: Certificate of Incorporation, Articles of Organization, Partnership Agreement, or appropriate Trust documents. We must receive these documents within five (5) business days from the execution date of the Entrepreneur Agreement.
- An Entrepreneur may change his or her status under the same Sponsor from an individual to a Business Entity so long as he or she complies with Section 2.5(A).
2.6. Independent Business Relationship; Indemnification for Actions
- As an Entrepreneur, you are an independent contractor, and not a purchaser of a franchise or business opportunity. As a result, each Entrepreneur’s success depends entirely upon his, her or its own independent efforts.
- The Agreement between you and Us does not create an employer/employee relationship, agency, partnership, or joint venture.
- An Entrepreneur shall not be treated as an employee of Farmasi for any purposes, including, without limitation, for federal or state tax purposes. You are responsible for paying local, state, and federal taxes due from all compensation earned as an Entrepreneur. Any other compensation received by Entrepreneurs from the Company will be governed by applicable U.S. tax laws (or the tax laws of any other applicable jurisdiction). You as an Entrepreneur have no express or implied authority to bind Farmasi to any obligation or to make any commitments by or on behalf of the Company. Each Entrepreneur, whether acting as management of a Business Entity or represented as an individual, shall establish goals, hours, and methods of operation and sale, so long as in compliance with the terms of the Entrepreneur Agreement, these Policies and Procedures and applicable state and federal laws.
- You are fully responsible for all your verbal and written communications made regarding Farmasi products, services, and the Compensation Plan that are not expressly contained within official Company materials. Entrepreneurs shall indemnify and hold harmless Farmasi, its directors, officers, employees, product suppliers and agents from any and against all liability including judgments, civil penalties, refunds, attorney fees and court costs incurred by Farmasi as a result of an Entrepreneur’s unauthorized representations or actions. This provision shall survive the termination of the Entrepreneur Agreement.
2.7. Errors or Questions
If an Entrepreneur has questions about, or believes any errors have been made regarding commissions, bonuses, business reports, orders, or charges, the Company requires any inquiries by submitting a ticket through your Farmasi Back Office within thirty (30) days of the date of the error or incident in question. Any such errors, omissions or problems not reported within this thirty-day timeframe days is expressly waived by Entrepreneur.
3.0. RESPONSIBILITIES OF A FARMASI ENTREPRENEUR
3.1. Correct Addresses
- It is the responsibility of any Customer/Entrepreneur to ensure the Company has the correct shipping address before the shipment of any orders.
- For any notice of address change sent to the Company, a Customer/ Entrepreneur will need to allow up to thirty (30) days for processing.
3.2. Training and Leadership
- Any Entrepreneur who sponsors another Entrepreneur into Farmasi must perform an authentic assistance and training function to ensure those made up of their downline organizations operate their business in accordance with these Policies and Procedures. Sponsoring Entrepreneurs should have ongoing contact and communication with those in their downline organizations. Examples of communication may include, but are not limited to, newsletters, written correspondence, telephone, contact, team calls, voice-mail, e-mail, personal meetings, accompaniment of downline Entrepreneur(s) to Company meetings, training sessions, webinars and any other related functions.
Farmasi may take appropriate action against an Entrepreneur if it determines, in its sole discretion that, an Entrepreneur neglects to train and assist their downline organization. Appropriate action may include, but not limited to, termination of their entrepreneur agreement and account.
- A Sponsoring Entrepreneur should monitor the Entrepreneur(s) in his or her downline organizations to ensure that downline Entrepreneur(s) do not make improper product or business claims or engage in any illegal or inappropriate conduct. Upon request, an Entrepreneur should be able to provide documented evidence to the Company of his or her ongoing fulfillment of Sponsor responsibilities.
- Upline Entrepreneurs are encouraged to motivate and train new Entrepreneur(s) about Company products and services, effective sales techniques, the Company Compensation Plan and compliance with these Policies and Procedures.
- The marketing and sale of products is a required activity in Farmasi and must be emphasized in all recruiting presentations. Moreover, we prioritize all Entrepreneurs to sell Farmasi products and services to Customers first and prospective and current Entrepreneurs second.
- Use of Sales Aids. Creation of Farmasi sales tools is limited to 6% and above. These Entrepreneurs must submit all written sales aids, promotional materials, advertisements, websites, and other literature to the Company for approval prior to use. Unless the Entrepreneur receives specific written approval to use the material, the request shall be deemed denied. All Entrepreneurs shall safeguard and promote the good reputation of Farmasi and its products. Once approved, Company reserves the right to incorporate the approved training material in its own promotional efforts.
It is Our goal to provide you with a combination of exceptional products and a rewarding Compensation Plan. Accordingly, we value constructive criticism and encourage the submission of written comments addressed to the Company’s Compliance Department so long as such comments come by way of a respectful and in a productive manner. Negative and disparaging comments by Entrepreneurs made to others about the Company, its products or Compensation Plan, or disruptive behavior at Company meetings or events, serve no purpose other than to dampen the enthusiasm of all those who participate in the Farmasi business. Entrepreneurs must not belittle the Company, other Entrepreneurs, the Company products or services, the Compensation Plan, or Company directors, officers, or employees, product suppliers or agents. Such conduct represents a material breach of these Policies and Procedures and may be subject to sanctions as the Company sees fit.
Farmasi endorses the following Code of Ethics:
Entrepreneurs must show fairness, tolerance, and respect to all people associated with Farmasi and Farmasi sales opportunity regardless of race, gender, social class, or religion.
Entrepreneurs must contribute to and foster an atmosphere of positivity, teamwork, good morale, and community spirit.
Entrepreneurs shall strive to resolve business issues, including situations with upline and downline members through tact, sensitivity, and good will.
Entrepreneurs must be honest, responsible, professional and conduct themselves with integrity.
Entrepreneurs shall never disparage the Company, other Entrepreneurs, Company employees, product suppliers or agents, products, services, sales and marketing campaigns, or the Compensation Plan, or make statements that unreasonably offend, mislead, or coerce others.
Farmasi may take appropriate action against an Entrepreneur if it determines, in its sole discretion, that the Entrepreneur’s conduct is detrimental, disruptive, or injurious to the Company, other Entrepreneurs, or Farmasi Customers.
3.4. Reporting Policy Violation
An Entrepreneur who observes a policy violation by another Entrepreneur should submit a written and signed letter (e-mail will not be accepted) of the violation directly to the Company Compliance Department. The letter shall set forth the details of the incident as follows:
The nature of the violation and specific facts to support the allegation;
Number of occurrences and dates;
The Persons involved; and
Any other supporting documentation
Upon presentation to the Company Compliance Department, we will research the incident in question and take appropriate action if necessary. This section refers to the general reporting of policy violations as observed by other Entrepreneurs for the mutual effort to support, protect, and defend the integrity of the Farmasi business and sales opportunity. If an Entrepreneur has a grievance or complaint against another Entrepreneur which directly relates to his, her or its Farmasi business, the procedures set forth in these Policies must be followed.
- The Sponsor is the person who introduces a person, whether a Customer or an Entrepreneur, to the Farmasi business and helps them complete their enrollment, supports those in their downline, and continues to provide training and assistance for all those in their downline.
- The Company recognizes the Sponsor as the name(s) shown on the first:
Physically signed Entrepreneur Agreement on file; or
Electronically signed Entrepreneur Agreement from either the Company’s website or an Entrepreneur’s replicated website.
- An Entrepreneur Agreement that contains notations such as “by phone” or the signatures of other individuals (i.e. Sponsors, Spouses, relatives, or friends) is not valid and will not be accepted by the Company.
- We recognize that each new prospect has the right to ultimately choose his or her own Sponsor, but We will not allow Entrepreneurs to engage in unethical sponsoring activities.
- All active Entrepreneurs in good standing have the right to Sponsor and enroll others into the Farmasi business. While engaged in sponsoring activities, it is not uncommon to encounter situations when more than one Entrepreneur will approach the same prospect. It is the accepted courtesy that the new prospect will be sponsored by the first Entrepreneur who presented a comprehensive introduction to the Company’s products or opportunity.
3.6. Cross Sponsoring Prohibition
- “Cross sponsoring” is defined as the enrollment of an individual or Business entity into a different line of sponsorship who has already signed an Entrepreneur Agreement. Actual or attempted cross sponsoring is not allowed. If cross sponsoring is verified by the Company, sanctions up to and including termination of an Entrepreneur’s business may be imposed.
- The use of a Spouse’s or relative’s name, trade names, assumed names, DBA names, corporation, partnership, trust, Federal ID numbers, or fictitious ID numbers to evade or circumvent this policy is strictly prohibited.
- This policy does not prohibit the transfer of a Farmasi business in accordance with the Sale or Transfer policy set forth herein.
- An Entrepreneur must adhere to the terms of the Company Compensation Plan. Any deviation from the Compensation Plan is strictly prohibited.
- An Entrepreneur shall not offer the Farmasi opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically set forth in official Company materials.
- An Entrepreneur shall not require or encourage a current or prospective Customer/ Entrepreneur to participate in the Farmasi business in any manner that varies from the Compensation Plan or other Company materials.
- Other than such purchases or payments required to naturally build their business, an Entrepreneur shall not require or encourage a current or prospective Customer/ Entrepreneur to make a purchase from or payment to any individual or other entity as a condition to participating in the Company Compensation Plan.
Many cities and counties have laws regulating certain home-based businesses. In most cases, these ordinances do not apply to Entrepreneurs because of the nature of the business. However, Entrepreneurs must check their local laws and obey the laws that do apply to them. An Entrepreneur shall comply with all federal, state, and local laws and regulations in their independent conducting of Farmasi business.
3.9. Compliance with Applicable Income Tax Laws
- Farmasi will automatically provide a complete 1099 Miscellaneous Income Tax form (nonemployee compensation) to each United States Entrepreneur whose earnings for the year is at least $600 or who has purchased more than $5,000 of Farmasi products for resale, or who received trips, prizes or awards valued at $600 or more. If earnings and purchases are less than stated above, IRS forms will be sent only at the request of the Entrepreneur, and a minimum charge of $20 may be assessed by the Company.
- An Entrepreneur accepts sole responsibility for and agrees to pay all federal, state, and local taxes on any income generated as an independent business owner, and further agrees to indemnify Farmasi from any failure to pay such tax amounts when due.
- If an Entrepreneur’s business is tax exempt, the Federal Tax Identification number must be provided to the Company in writing.
- Farmasi encourages all Entrepreneurs to consult with a tax advisor for additional information for their business.
3.10. One Farmasi Business Per Person
An Entrepreneur may operate or have an ownership interest, whether legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one Farmasi business. No individual may have, operate, or receive compensation from more than one Farmasi businesses. If each subsequent family position is placed within the first enrolled family member’s frontline, individuals in the same family unit may each enter or have an interest in their own separate Farmasi businesses. A “family unit” is defined as Spouses and dependent children living or conducting business at the same address. Note: Children of legal age to contract and at least 18 years of age are not considered a part of their parents’ household.
3.11. Actions of Household Members or Affiliated Parties
If any member of your immediate household engages in any activity which, if performed by you, would violate any provision of the Agreement, such activity will be deemed a violation by you. As a result, the Company may take disciplinary action pursuant to these Policies and Procedures against you. Similarly, if any individual associated in any way with a corporation, partnership, LLC, trust or other entity (collectively “Business Entity”) violates the Agreement, such action(s) will be deemed a violation by the Business Entity, and the Company may take disciplinary action against the Business Entity. Likewise, if an Entrepreneur enrolls in Farmasi as a Business Entity, each affiliated party of the Business Entity shall be personally and individually bound to, and must comply with, the terms and conditions of the Agreement.
3.12. Solicitation for Other Companies or Products
- An Entrepreneur may participate in other direct sales, multilevel, network marketing or relationship marketing business ventures or marketing opportunities (collectively “Network Marketing”). However, during the Term of this Agreement and for one (1) year thereafter, you may not recruit any other Farmasi Customer or Entrepreneur for any other Network Marketing business, unless said Customer or Entrepreneur was personally sponsored by you.
- The term “recruit” means actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way (either directly or through a third party), another Customer or Entrepreneur to enroll or participate in any Network Marketing opportunity. This conduct represents recruiting even if the Entrepreneur’s actions are in response to an inquiry made by another Customer or Entrepreneur.
- However, you may sell non-competing products or services to Farmasi Customers and Entrepreneurs. Specifically, a non-competing company is defined as a Network Marketing company that does NOT sell cosmetic and personal care products.
Due to the visibility of our higher-ranking Entrepreneurs, Farmasi Entrepreneurs who achieve the rank of Golden Manager or above agree not to participate in any Network Marketing or party plan company, regardless if the company sells competing products or not. This restriction applies regardless if the Entrepreneur has fallen out of Golden Manager qualification.
- An Entrepreneur may not display or bundle Farmasi products or services, in sales literature, on a website or in sales meetings, with any other products or services to avoid confusing or misleading a prospective Customer or Entrepreneur into believing there is a relationship between Farmasi, and the non-Company related products or services.
- You may not offer any non-Company related opportunity, products, or services at any Farmasi- related meeting, seminar, or convention, or immediately following said event(s).
- A violation of any of the provisions in this section shall constitute unreasonable and unwarranted contractual interference between the Company and you. As a result, such actions would inflict irreparable harm on Farmasi. In such event, the Company may, at its sole discretion, impose any sanction it deems necessary and appropriate against the Entrepreneur or Entrepreneur’s business including termination, the request for immediate injunctive relief, or the pursuit of any other legal and equitable remedies.
3.13. Presentation of the Farmasi Opportunity
In presenting the Company opportunity to potential Customers and Entrepreneurs, you must comply with the following provisions:
Abstain from a misquote or omission of any significant material fact about the Compensation Plan.
Make clear that the Compensation Plan is based upon sales of Farmasi products and services to consumers.
Make clear that success can be achieved only through substantial independent efforts and hard work.
Abstain from unauthorized income projections, claims, or guarantees* during any presentation or discussion the Farmasi opportunity or Compensation Plan to prospective Customers or Entrepreneurs, frequently citing to the Farmasi Income Disclaimer as provided on the Company website.
Abstain from any claims regarding Company products or services not found in official Company materials.
Refrain from the promotion of Farmasi in any country where We have not yet established a “presence.”
*Note: The terms “income claim” and/or “earnings representation” (collectively “income claim”) include the following: (1) statements of average earnings, (2) statements of non-average earnings, (3) statements of earnings ranges, (4) income testimonials, (5) lifestyle claims, and (6) hypothetical claims. Examples of “statements of non-average earnings” include, “Our number one Entrepreneur earned over eight hundred thousand dollars last year” or “Our average-ranking Entrepreneur earns two thousand dollars per month.” An example of a “statement of earnings ranges” is “The monthly income for our higher-ranking Entrepreneurs is ten thousand dollars on the low end to twenty-five thousand dollars a month on the high end.”
3.14. Sales Requirements are Governed by the Compensation Plan
A. For all Farmasi products, the Company provides a set sales price. There are no exclusive territories granted to anyone. No franchise fees are applicable to a Farmasi business.
B. The Farmasi program is built on sales to the ultimate consumer. Thus, Entrepreneurs must only purchase inventory that they and their family will personally consume, will be used as a sales tool, or will be resold to others for ultimate use. Entrepreneurs must never attempt to influence any other Entrepreneurs to buy more products than they can reasonably use or sell to Customers in a month.
The downline of a BI who is terminated/resigned will be sponsored by a ‘Farmasi Virtual’ account that will replace this Beauty Influencer. If the existing upline of the person who is now terminated/resigned is at least 1 or above title ranked than the terminated/resigned BI, the downline rolls up to the upline immediately without any condition.
In case the existing upline is ranked the same or below the terminated/resigned BI, the ‘Farmasi Virtual’ account will sponsor the downline for a minimum of 6 months. During the 6 months, the existing upline could earn the downline if they achieve the necessary requirements. If the existing upline cannot achieve the requirements, then the downline stays under the ‘Farmasi Virtual’ account.
4.1 General Order Policies
A. “Bonus Buying” is strictly and absolutely prohibited. Bonus Buying includes any of the following scenarios: (I) the enrolment of individuals or entities without the knowledge of and/or execution of an Agreement by such individuals or Business Entities; (II) the fraudulent enrolment of an individual or entity as a Customer or Entrepreneur; (III) the enrolment or attempted enrolment of non-existent individuals or Business Entities as Customers or Entrepreneurs (“phantoms”); (IV) purchasing Farmasi products or services on behalf of another Customer or Entrepreneur, or under another Customer’s or Entrepreneur’s ID number, to qualify for commissions or bonuses; (V) purchasing excessive amounts of products or services that cannot reasonably be used or resold in a month; and/or (VI) any other mechanism or artifice to qualify for rank advancement, incentives, prizes, commissions, or bonuses that is not driven by bona fide product or service purchases by end user consumers.
An Entrepreneur shall not use another Customer’s or Entrepreneur’s credit card or debit checking account to enroll in Farmasi or purchase products or services without the account holder’s written permission. Such documentation must be kept by the Entrepreneur indefinitely in case we need to reference this.
B. Regarding an order with an invalid or incorrect payment, we will attempt to contact the Entrepreneur by phone, mail, or e-mail to obtain another form of payment. If these attempts are unsuccessful after ten (10) business days, the order will be canceled.
C. Prices are subject to change without notice.
D. A Customer or Entrepreneur who is a recipient of a damaged or incorrect order must notify the Company within thirty (30) calendar days from receipt of the order and follow the procedures as set forth in these Policies.
4.2 Insufficient Funds
A. All checks returned for insufficient funds will be re-submitted for payment. A $25 fee will be charged to the account of the Customer or Entrepreneur for all returned checks and insufficient funds.
B. Any outstanding balance owed to Us by a Customer or Entrepreneur of yours from NSF (non-sufficient funds) checks returned check fees or insufficient fund fees (ACH) will be withheld from your future bonus and commission checks.
C. All transactions involving returned checks or insufficient funds through ACH or credit card, which are not resolved in a timely manner by the Entrepreneur, constitute grounds for disciplinary sanctions.
D. If a credit card order or automatic debit is declined the first time, the Customer or Entrepreneur will be contacted for an alternate form of payment. If payment is declined a second time, the Customer or Entrepreneur may be deemed ineligible to purchase Company products or services in the future.
4.3 Sales Tax Obligation
A. You as an Entrepreneur shall comply with all state and local taxes and regulations governing the sale of Our products and services.
B. We will collect and remit sales tax on Entrepreneur orders unless an Entrepreneur furnishes Us with the appropriate Resale Tax Certificate form. When orders are placed with Us, sales tax is prepaid based upon the suggested retail price. We will remit the sales tax to the appropriate state and local jurisdictions. The Entrepreneur may recover the sales tax when a sale is made.
C. We encourage each Entrepreneur to consult with a tax advisor for additional information about their Farmasi business.
5.0 PAYMENT OF COMMISSIONS & BONUSES
5.1 Bonus and Commission Qualifications
A. An Entrepreneur must be active (as defined in the Glossary of Terms) and in compliance with these Policies and Procedures to qualify for bonuses and commissions. So long as an Entrepreneur complies with the terms of the Agreement, we shall pay commissions to such Entrepreneur in accordance with the Compensation Plan.
B. We will not issue a payment to an Entrepreneur without the receipt of a completed and signed Entrepreneur Agreement via hard copy or through Electronic Authorization.
C. We reserve the right to postpone bonus and commission payments until such time the cumulative amount exceeds $50.
5.2 Computation of Commissions and Discrepancies
A. An Entrepreneur placing his or her first order must review his or her monthly statement and bonus/commission reports located in the back office of their website and report any discrepancies within thirty (30) days of receipt. After this initial thirty-day “grace period, an Entrepreneur expressly waives any right to commission recalculation.
B. An Entrepreneur who believes a miscalculation of bonuses/commissions has occurred
C. For additional information on payment of commissions, please review the Compensation Plan.
5.3 Adjustments to Bonuses and Commissions for Returned Products
A. An Entrepreneur receives bonuses and commissions based on the actual sales of products and services to end consumers. When a product or service is returned to the Company for a refund from the end consumer, the bonuses and commissions attributable to the returned product or service will be deducted from the Entrepreneur who received bonuses or commissions on said sales. Deductions will occur in the month in which the refund is given and continue every pay period thereafter until the bonus/and or commission is recovered.
B. If an Entrepreneur terminates his or her business, and the amounts of the bonuses or commissions attributable to the returned products or services have not yet been fully recovered by the Company, the remainder of the outstanding balance may be offset against any other amounts that may be owed by the Company to the terminated Entrepreneur.
5.4. Chargeback Policy
When a card processor forcibly reverses a credit card transaction, returning funds to the cardholder, it is known as a chargeback. Chargebacks are usually issued when a cardholder reports fraud to their credit card company. When Farmasi receives a chargeback notice, the account in which the service was purchased is immediately blocked, and all related services in the account are suspended. Farmasi will attempt to “claw back” all commission paid plus $50 chargeback fee via the reversed transaction. This means Farmasi will seek to recover funds from anyone that received a reward from transactions that are ultimately reversed. Until the full funds are received, all access to Farmasi services and programs will be suspended.
6.0 SATISFACTION GUARANTEED AND RETURN OF SALES AIDS
Farmasi offers a one hundred percent (100%) thirty-day money back guarantee for all Customers and Entrepreneurs. If a Customer purchased a product or service directly from an Entrepreneur, the Entrepreneur must provide a 100% refund to the customer.
If you as a Beauty Influencer are not 100% satisfied with our products or are unable to sell them, and you would like to return products that were intended to be resold, you may return the items for product of equivalent value OR a refund if: (I) neither you nor We have terminated the Agreement; (II) the products or services were purchased within the previous (12) months; and (III) the products remain in resalable condition (as defined in the Glossary of Terms). The refund shall be eighty percent (80%) of the purchase price, unless the individual is a Montana resident where the refund shall be ninety percent (90%) per Montana state law. Shipping and handling charges incurred will not be refunded.
Upon cancellation of the Agreement, the Entrepreneur may return all generic sales aids provided by the Company and purchased after enrollment within one (1) year from the date of cancellation for a refund if he or she is unable to sell or use the merchandise. An Entrepreneur may only return sales aids personally purchased from the Company under his or her Entrepreneur Identification Number, and which are in resalable Condition. Any custom orders of printed sales aids (i.e., business cards, brochures, etc.) where on the Entrepreneur’s contact information is imbedded or hard printed, or has been added by the Entrepreneur, are not able to be returned in Resalable Condition and are thus nonrefundable. Upon the Company’s receipt of the products and sales aids, the Entrepreneur will be reimbursed ninety percent (90%) of the net cost of the original purchase price(s), less shipping and handling charges. If the purchases were made through a credit card, the refund will be credited back to the same credit card account. The Company shall deduct from the reimbursement paid to the Entrepreneur any commissions, bonuses, rebates, or other incentives received by the Entrepreneur which were associated with the merchandise that is returned.
6.1 Return Process
A. All returns, whether by a Customer or Entrepreneur, must be made as follows:
- Contact our Farmasi Customer Service Department at 1-(833)-432-7627 to confirm your order is eligible for a refund.
- Secure all of products you are returning in a box and provide a copy of the invoice with the returned products or service. Such invoice must include the reason for return and products must be shipped back in the exact same manner as it was delivered, meaning the packaging should be the exact same.
- Ship items to the address to the address below.
Farmasi / ATT: Returns
2335 107th Ave Suite 2C01, Doral, FL 33172
- All returns must be shipped to the Company pre-paid, as We do not accept shipping collect packages. We recommend shipping returned product by UPS or FedEx with tracking and insurance as risk of loss or damage in shipping of the returned product shall be borne solely by the Customer or Entrepreneur. If returned product is not received at the Company Distribution Center, it is the responsibility of the Customer or Entrepreneur to trace the shipment and no credit will be applied.
- If a product is received in damaged or defective condition, the Company will cover all shipping charges by providing a shipping label. Proof of the defective product must be submitted via photograph to our Customer Service Department by submitting a ticket via your Farmasi Back Office.
- The return of $ 1,000 or more of products accompanied by a request for a refund within a single calendar year by an Entrepreneur may constitute grounds for involuntary termination.
7.2 Expectation of Privacy
A. Farmasi recognizes and respects the importance its Customers and Entrepreneurs place on the privacy of their financial and personal information. Thus, we will make reasonable efforts to safeguard the privacy of and maintain the confidentiality of its Customers’ and Entrepreneurs’ financial and account information and nonpublic personal information.
B. By entering into the Entrepreneur Agreement, you authorize the Company to disclose your name and contact information to upline Entrepreneurs solely for activities related to the furtherance of the Farmasi business. An Entrepreneur hereby agrees to maintain the confidentiality and security of such information and to use it solely for the purpose of supporting and servicing the downline organization and conducting Farmasi business.
7.3 Employee Access to Information
We limit the number of employees who have access to Customers’ and Entrepreneurs’ nonpublic personal information.
7.4 Restrictions on the Disclosure of Account Information
Farmasi will not share non-public personal information or financial information about current or former Customers or Entrepreneurs with third parties, except as permitted or required by laws and regulations, court orders, or to serve the Customers’ or Entrepreneurs’ interests or to enforce its rights or obligations under these Policies and Procedures, the Entrepreneur Agreement, or with written permission from the accountholder on file.
8.0 PROPRIETARY INFORMATION AND TRADE SECRETS
8.1 Business Reports, Lists, and Proprietary Information
By completing and signing the Entrepreneur Agreement, you acknowledge that Business Reports, lists of Customer and Entrepreneur names and contact information, and any other information, which contain financial, scientific or other information both written or otherwise circulated by the Company pertaining to the business of Farmasi (collectively, “Reports”), are confidential and proprietary information and trade secrets belonging to the Company.
8.2 Obligation of Confidentiality
During the Term of the Entrepreneur Agreement and for a period of five (5) years after the termination or expiration of the Entrepreneur Agreement between you and Us, you shall not:
I. Use the information in the Reports to compete with Farmasi or for any purpose other than promoting your business;
II. Use or disclose to any person or entity any confidential information contained in the Reports, including the replication of the genealogy in another network marketing company.
8.3 Breach and Remedies
The Entrepreneur acknowledges that such proprietary information is of such character as to render it unique and that disclosure or use thereof in violation of this provision will result in irreparable damage to Farmasi and to independent Farmasi businesses. The Company and its Entrepreneurs will be entitled to injunctive relief or to recover damages against any Entrepreneur who violates this provision in any action to enforce its rights under this section. The prevailing party shall be entitled to an award of attorney’s fees, court costs and expenses.
8.4 Return of Materials
Upon demand by the Company, any current or former Entrepreneur will return the original and all copies of all “Reports” to the Corporate office together with any other Company confidential information in such person’s possession. Entrepreneur shall contact Corporate office to return materials via sending an e-mail to Compliance@farmasius.com.
9.0 ADVERTISING, PROMOTIONAL MATERIAL, USE OF COMPANY NAMES AND TRADEMARKS
A. An Entrepreneur may not re-label, re-package, refill, or alter labels of any Farmasi product or service
information, materials, or program(s) in any way. Such re-labeling or re-packaging violates federal and state laws, which may result in criminal or civil penalties or liability.
sold or displayed in retail establishments, including but not limited to kiosks in malls, during normal business hours.
any appropriate display booth (such as trade shows) upon prior written approval from the Company. The request for Company approval may be made by way of email to Compliance@farmasius.com.
D. We reserve the right to refuse authorization to participate at any function that it does not deem a
suitable forum for the promotion of its products and services.
9.2 Use of Company Names and Protected Materials
A. An Entrepreneur must safeguard and promote the good reputation of the Company and the products
and services it markets. The marketing and promotion of the Company, the Farmasi opportunity, the Compensation Plan, and its products and services will be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, unethical, or immoral conduct and practices.
B. All promotional materials supplied or created by Us must be used in their original form and cannot
be changed, amended, or altered except with prior written approval from the Company Compliance Department.
C. The name Farmasi, each of its product and service names and other names that have been adopted
by the Company in connection with its business are proprietary trade names, trademarks, and service marks of Farmasi. As such, these marks are of great value to the Company and are supplied to Entrepreneurs for their use only in an expressly authorized manner.
D. An Entrepreneur’s use of the name “Farmasi” is restricted to protect the Company’s proprietary
rights, ensuring that the Company protected names will not be lost or compromised by unauthorized use. Use of the Farmasi name on any item not produced by the Company is prohibited except as follows:
·[Entrepreneur’s name] An Entrepreneur of Farmasi; or
·[Entrepreneur’s name] Independent Business Owner and Entrepreneur of Farmasi products and services.
E. Further procedures relating to the use of the Farmasi name are as follows:
I. All stationary (i.e., letterhead, envelopes, and business cards) bearing the Farmasi name or logo intended for use by the Entrepreneur must be approved in writing by the Company Compliance Department.
II. Farmasi Entrepreneurs may list “Entrepreneur of Farmasi” in the white pages of the telephone directory under his or her own name
III. Entrepreneurs may not use the name “Farmasi,” “Farmasi US Corporate Office,” or “Corporate Office of Farmasi” in answering the telephone, creating a voice message or using an answering service, such as to give the impression to the caller that they have reached the domestic, corporate office. They may state, “Farmasi Entrepreneur”.
IV. Entrepreneurs can use our logo for custom t-shirts, hoodies, and other items for their organizations. The sale of the custom items is strictly prohibited.
V. Entrepreneurs must use the logos that are in the Farmasi Back Office and they cannot be modified in any way shape or form. The term “Beauty Influencer” may be added.
E. Certain photos and graphic images used by Farmasi in its advertising, packaging, and websites are
the result of paid contracts with outside vendors that do not extend to Entrepreneurs. If an Entrepreneur wants to use these photos or graphic images, they must negotiate individual contracts with the vendors for a fee.
F. An Entrepreneur shall not appear on or make use of television or radio or make use of any other
media to promote or discuss the Company, its programs, products, or services without prior written permission from the Company Compliance Department.
G. An Entrepreneur may not produce for sale or distribution any Company event or speech, nor may an
Entrepreneur reproduce Company audio or video clips for sale or for personal use without prior written permission from the Company Compliance Department.
H. Farmasi reserves the right to rescind its prior approval of any sales aid or promotional material to
comply with changing laws and regulations and may request the removal from the marketplace of such materials without financial obligation to the affected Entrepreneur.
I. An Entrepreneur shall not promote non-Farmasi products or services in conjunction with Company products or services on the same websites or same advertisement.
J. Claims (which include personal testimonials) as to therapeutic, curative, or beneficial properties of
any Farmasi products offered may not be made except those contained in official Company literature. No Entrepreneur may make any claim that Farmasi and its marketed products are useful in the cure, treatment, diagnosis, mitigation, or prevention of any diseases. Such statements can be perceived as medical or drug claims. Not only do such claims violate Farmasi policies, but also, they potentially violate federal and state laws and regulations, including the federal Food, Drug, and Cosmetic Act and Federal Trade Commission Act.
9.3 Faxes and E-mail Limitations
A. Except as provided in this section, an Entrepreneur may not use or transmit unsolicited faxes, email,
mass email distribution, or “spamming” that advertises or promotes the operation of the Farmasi business. The exceptions are:
I. Faxes or e-mailing any person who has given prior permission or invitation;
II. Faxing or e-mailing any person with whom the Entrepreneur has established a prior
business or personal relationship.
B. In all states where prohibited by law, an Entrepreneur may not transmit, or cause to be transmitted
through a third party, (by telephone, facsimile, computer or other device), an unsolicited advertisement to any equipment, which has the capacity to transcribe text or images from an electronic signal received over a regular telephone line, cable line, ISDN, T1 or any other signal carrying device, except as set forth in this section.
C. All faxes, e-mail or computer broadcasted documents subject to this provision shall include each of
I. A clear and obvious identification that the fax or e-mail message is an advertisement or
solicitation. The words “advertisement” or “solicitation” should appear in the subject line of the message;
II. A clear return path or routing information;
III. The use of legal and proper domain name;
IV. A clear and obvious notice of the opportunity to decline to receive further commercial facsimile or e-mail messages from the sender;
V. Unsubscribe or opt-out instructions should be the very first text in the body of the message box in the same size text as the majority of the message;
VI. The true and correct name of the sender, valid senders’ fax or e-mail address, and a valid sender physical address;
VII. The date and time of the transmission;
VIII. Upon notification by recipient of his or her request not to receive further faxed or e-mailed documents, an Entrepreneur shall not transmit any further documents to that recipient.
D. All e-mail or computer broadcasted documents subject to this provision shall not include any of the
I. Use of any third-party domain name without permission; and
II. Sexually explicit materials.
9.4 Internet and Third-Party Website Restrictions
A. An Entrepreneur may not use or attempt to register any of Farmasi’s trade names, trademarks,
service names, service marks, product names, URLs, advertising phrases, the Company’s name or any derivative thereof, for any purpose including, but not limited to, Internet domain names (URL), third party websites, social media groups, e-mail addresses, web pages, ads or blogs.
B. An Entrepreneur cannot use or register domain names, email addresses, and/or online aliases
that could cause confusion, be misleading, or deceive individuals into believing that a communication is from or is the property of Farmasi corporate.
Regarding the registered mark of Farmasi in URLs, examples of improper use include but are not limited to:
III. www.facebook.com/farmasius; or
IV. Any other derivatives as described herein.
Examples of permitted URLs, email addresses, and online aliases might appear as follows:
I. Facebook.com/iloveFarmasi; or
Determination as to what could cause confusion, mislead, or be considered deceptive is at the sole discretion of the Company.
C. An Entrepreneur may not sell Farmasi products, services or offer the Farmasi sales opportunity
via “online auctions,” such as eBay®, or “online marketplaces” such as Amazon or Etsy. For more information, please see the Farmasi Online Marketplace Provision pursuant to Section 9.4(R).
D. The Company provides all Entrepreneurs with one (1) replicated website. A Farmasi replicated
website is a personal website for Entrepreneurs that is hosted on Company servers. As for any Entrepreneur who wishes to develop its own third-party website (or site not affiliated with the Company and independently owned and operated by the Entrepreneur) must seek and receive the Company’s prior written approval before going live with such third-party website. Should the Company grant the Entrepreneur approval to use a third-party website, the site must:
I. Identify yourself as an Entrepreneur for Farmasi
II. Use only the approved images and wording authorized by the Company
III. Adhere to the branding, trademark, and image usage policies described in this document.
IV. Adhere to any other provision regarding the use of a third-party website described in this document
V. Agree to modify your website to comply with current or future Company policies.
E. All marketing materials used on an Entrepreneur’s third-party website must be provided by the
Company in writing.
F. To avoid confusion, the following three elements must also be prominently displayed at the top
of every page of any third-party website:
1. The Farmasi Entrepreneur Logo
2. Your Name and Title
3. Farmasi Corporate Website Redirect Button
G. An Entrepreneur may not use third-party sites that contain materials copied from corporate
sources (such as Farmasi brochures, CDs, videos, tapes, events, presentations, and corporate websites). This policy ensures brand consistency, allows Customers and Entrepreneurs to stay up to date with changing products, services, and information, facilitates enrollment under the correct Sponsor, and assists in compliance with government regulations.
H. If an Entrepreneur who has received authorization to create and post any third-party website has
the business voluntarily or involuntarily canceled for any reason, or if the Company revokes authorization allowing the Entrepreneur to maintain such a third-party website, the Entrepreneur shall assign the URL to the third-party website to the Company within three (3) days from the date of the cancellation and/or re-direct all traffic to the site as directed by the Company. We reserve the right to revoke any Entrepreneur’s right to use a third-party website at any time if We believe that such revocation is in the best interest of Farmasi, its Entrepreneurs and/or Customers. Decisions and corrective actions in this area are at the Company’s sole discretion.
I. Social Media sites may be used to market Farmasi products. PROFILES AN ENTREPRENEUR GENERATES IN ANY SOCIAL COMMUNITY WHERE FARMASI IS DISCUSSED OR MENTIONED MUST CLEARLY IDENTIFY THE ENTREPRENEUR AS SUCH, and when an Entrepreneur participates in those communities, he or she must avoid inappropriate conversations, comments, images, video, audio, applications or any other adult, profane, discriminatory or vulgar content. The determination of what is inappropriate is at the Company’s sole discretion, and offending Entrepreneurs will be subject to disciplinary action. Banner ads and images used on these sites must be current and must come from the Farmasi approved library. If a link is provided, it must link to the posting Entrepreneur’s replicated website or an approved third-party website.
J. Anonymous postings or use of an alias on any Social Media site is prohibited, and offending Entrepreneurs will be subject to disciplinary action.
K. Entrepreneurs may not use blog spam, spamdexing, or any other mass-replicated methods to leave blog comments. Comments Entrepreneurs create or leave must be useful, unique, relevant, and specific to the blog’s article.
L. Entrepreneurs must disclose their full name on all Social Media postings, and conspicuously identify themselves as an Entrepreneur for Farmasi. Anonymous postings or use of an alias is prohibited.
M. Postings that are false, misleading, or deceptive are prohibited. This includes, but is not limited to, false or deceptive postings relating to the Farmasi income opportunity, the Company products and services, and/or your biographical information and credentials.
N. Entrepreneurs are personally responsible for their postings and all other online activity that relates to Farmasi. Therefore, even if an Entrepreneur does not own or operate a blog or Social Media site, an Entrepreneur’s post(s) to any such site that relates to Farmasi or which can be traced to the Company makes the Entrepreneur responsible for the posting. Entrepreneurs are also responsible for postings which occur on any blog or Social Media site that the Entrepreneur owns, operates, or controls.
O. The distinction between a Social Media site and a website may not be clear-cut, because some Social Media sites are particularly robust; therefore, Farmasi reserves the sole and exclusive right to classify certain Social Media sites as third-party websites and require that Entrepreneurs using, or who wish to use, such sites adhere to the Farmasi policies relating to third-party websites.
P. If your Farmasi business is cancelled for any reason, you must discontinue using the Company name, and all of the Company’s trademarks, trade names, service marks, and other intellectual property, and all derivatives of such marks and intellectual property, in any postings and all Social Media sites that you utilize. If you post on any Social Media site on which you have previously identified yourself as an Entrepreneur of Farmasi, you must conspicuously disclose that you are no longer a Farmasi Entrepreneur business owner.
Q. Failure to comply with these Policies for conducting business online may result in the Entrepreneur losing their right to advertise and market Company products, services and the Farmasi opportunity online or any other disciplinary action available under the Policies and Procedures.
R. Farmasi predicates its business on in-home and event sales. Therefore, face-to-face interactions with Customers and Entrepreneurs are critical to one’s individual success in this business. Because of this, Farmasi has a strict approach to online marketplace sales via eBay or Etsy. The Company does not allow an Entrepreneur to sell any Farmasi products on eBay, Etsy or Facebook Marketplace (collectively known as “Online Marketplaces”). During the term of your contract as an Entrepreneur, you can maintain a profile on any of these Online Marketplaces but must refrain completely from selling or offering Company products. This same policy applies to other third-party sites by which an Entrepreneur could sell Farmasi products.
A. No special enticement advertising is allowed. This includes, but is not limited to, offers of a free business, free product packages, or other such offers that grant advantages beyond those available through the Company.
B. Advertising and all forms of communications must adhere to principles of honesty and propriety.
C. All advertising, including, but not limited to, print, Internet, computer bulletin boards, television,
radio, etc., are subject to prior written approval by the Company Compliance Department.
D. All requests for approvals with respect to advertising must be directed in writing to the Company Compliance Department.
E. Corporate approval is not required to place blind ads that do not mention Farmasi, its employees, any of its products, services, designs, symbols, programs, and trademarked, copyrighted, or otherwise protected materials.
F. The Company reserves the right to rescind its prior approval of submitted advertising or promotional materials to comply with changing laws and regulations and may require the removal of such advertisements from the marketplace without obligation to the affected Entrepreneur.
G. Sample products are not intended for resale.
9.6 Testimonial Permission
By signing the Entrepreneur Agreement, you give us permission to use your testimonial or image and likeness in corporate sales materials, including but not limited to print media, electronic media, audio, and video. In consideration of being allowed to participate in the Farmasi opportunity, you waive any right to be compensated for the use of your testimonial or image and likeness even though the Company may be paid for items or sales materials containing such image and likeness. In some cases, an Entrepreneur’s testimonial may appear in another Entrepreneur’s advertising materials. If you do not wish to participate in Farmasi sales and marketing materials, you should provide a written notice to the Company Compliance Department to ensure that your testimonial or image and likeness will not be used in any corporate materials, corporate recognition pieces, advertising or recordings of annual events.
9.7 Telemarketing Limitations
A. An Entrepreneur must not engage in telemarketing in relation to the operation of his or her Farmasi business. The term “telemarketing” means the placing of one or more telephone calls to an individual or entity to induce the purchase of Farmasi products or services, or to recruit them for the Farmasi opportunity.
B. The Federal Trade Commission (“FTC”) and the Federal Communications Commission (“FCC”) each have laws that restrict telemarketing practices. Both federal agencies, as well as several states have “do not call” regulations as part of their telemarketing laws.
C. While an Entrepreneur may not consider herself a “telemarketer” in the traditional sense, these regulations broadly define the term “telemarketer” and “telemarketing” so that the unintentional action of calling someone whose telephone number is listed on the Federal “Do Not Call” registry could cause the Entrepreneur to violate the law. These regulations must not be taken lightly, as they carry significant penalties (up to $11,000 per violation).
D. “Cold calls” or “state-to-state calls” made to prospective Customers or Entrepreneurs that promote either Farmasi products, services or the Farmasi opportunity is considered telemarketing and is prohibited.
E. Exceptions to Telemarketing Regulations. An Entrepreneur may place telephone calls to prospective Customers or Entrepreneurs under the following limited situations:
·If the Entrepreneur has an established business relationship with the prospect
·In response to the prospect’s personal inquiry or application regarding a product or service offered by the Entrepreneur within three (3) months immediately before the date of such a call
·If the Entrepreneur receives written and signed permission from the prospect authorizing the Entrepreneur to call
·If the call is to family members, personal friends, and acquaintances. However, if an Entrepreneur makes a habit of collecting business cards from everyone, he/she meets and subsequently calls them, the FTC may consider this a form of telemarketing that is not subject to this exemption
·An Entrepreneur engaged in calling “acquaintances,” must make such calls on an occasional basis only and not as a routine practice.
·An Entrepreneur shall not use automatic telephone dialing systems in the operation of her Farmasi businesses.
F. Failure to abide by Company policies or regulations as set forth by the FTC and FCC regarding
telemarketing may lead to sanctions against the Entrepreneur’s business, up to and including termination of the business.
G. By signing the Entrepreneur Agreement, or by accepting commission checks, other payments, or awards from Farmasi, an Entrepreneur gives permission to Farmasi and other Entrepreneurs to contact them as permitted under the Federal Do Not Call regulations.
H. In the event an Entrepreneur violates this section, we reserve the right to institute legal proceedings to obtain monetary or equitable relief.
10.0 CHANGES TO AN ENTREPRENEUR’S BUSINESS
10.1 Modification of the Entrepreneur Agreement
An Entrepreneur may modify his, her or its existing Entrepreneur Agreement (i.e., change a social security number to a Federal ID number, add a Spouse or partner to the account, or change the form of ownership from an individual to a Business Entity owned by the Entrepreneur) by submitting a written request, accompanied by a new Entrepreneur Agreement and the Business Registration Form, if applicable, completed with fresh signatures (not a “crossed out” or “white-out” version of the first Agreement), and any appropriate supporting documentation.
10.2 Change Sponsor or Placement for Inactive Entrepreneur
A. Entrepreneurs have 3 days after registering to request a change of sponsor. At the discretion of Farmasi, Entrepreneurs who neither sold nor purchased products for at least six (6) months, and who have not tendered a letter of resignation, are eligible to re-enroll in the Company under the Sponsor/Placement of their choice.
B. Upon written notice to the Company that a former Entrepreneur wishes to re-enroll, Farmasi will “compress” (close) the original account. A new Entrepreneur ID number will then be issued to the former Entrepreneur.
C. Such Entrepreneur does not retain former rank, downline, or rights to commission checks from the former organizations.
D. The Company reserves the right to correct Sponsor or Placement errors at any time and in whatever manner it deems necessary.
10.3 Change Organizations
A. If an Entrepreneur wishes to transfer organizations, he or she must submit a letter of resignation to
the Company Customer Service Department and remain inactive (neither buy or sell) with or in Farmasi for six (6) months from the receipt of the letter before being eligible to re-enroll under a different Sponsor/Placement.
B. The Company retains the right to approve or deny any request to re-enroll after an Entrepreneur’s
C. If re-enrollment is approved, the former Entrepreneur will be issued a new Entrepreneur ID number
and will be required to submit a new Entrepreneur Agreement. The Entrepreneur will not be entitled to keep any former rank, downline, or rights to commission checks from any prior organization.
10.4 Unethical Sponsoring
A. Unethical sponsoring activities include, but are not limited to, enticing, bidding, or engaging in
unhealthy competition in trying to acquire a prospect or new Entrepreneur from another Entrepreneur or influencing another Entrepreneur to transfer to a different sponsor.
B. Allegations of unethical sponsoring must be reported in writing to the Company Compliance
Department within the first 90 days of enrollment. If the reports are substantiated, Farmasi may transfer the Entrepreneur or the Entrepreneur’s downline to another sponsor, Placement, or organization without approval from the current up-line Sponsor or Placement Entrepreneurs. The Company remains the final authority in such cases.
C. Farmasi prohibits the act of “Stacking.” Stacking is the unauthorized manipulation of
the Company compensation system and/or the marketing plan to trigger commissions or cause a promotion off a downline Entrepreneur in an unearned manner. One example of stacking occurs when a Sponsor places participant under an inactive downline without his or her knowledge to trigger unearned qualification for commissioning. Stacking is unethical and unacceptable behavior, and as such, it is a punishable offense with measures up to and including the termination of the independent consultant positions of all individuals and/or entities found to be directly involved.
D. Should Entrepreneurs engage in solicitation and/or enticement of members of another direct sales
company to sell or distribute Farmasi products and services to, they bear the risk of being sued by the other direct sales company. If any lawsuit, arbitration, or mediation is brought against an Entrepreneur alleging that they engaged in inappropriate recruiting activity of another company’s sales force or Customers, the Company will not pay any of the Entrepreneur’s defence costs or legal fees, nor will the Company indemnify the Entrepreneur for any judgment, award, or settlement.
10.5 Sell, Assign or Delegate Ownership
A. To preserve the integrity of the hierarchical structure, it is necessary for Farmasi to place restrictions
on the transfer, assignment, or sale of a business.
B. An Entrepreneur may not sell or assign rights or delegate the position as an Entrepreneur
without prior written approval by the Company, which approval will not be unreasonably withheld. Any attempted sale, assignment, or delegation without such approval may be voided at the discretion of the Company.
C. Should the sale be approved by the Company, the Buyer assumes the position of the Seller at the
current qualified title, but at the current “paid as” rank, at the time of the sale and acquires the Seller’s Downline.
D. To request corporate authorization for a sale or transfer of a Farmasi business, the following items
must be submitted to the Company Compliance Department:
·A Sale/Transfer of Business Form properly completed, with the requisite signatures
·A copy of the Sales Agreement signed and dated by both Buyer and Seller
·An Entrepreneur Agreement completed and signed by the Buyer
·Any additional supporting documentation requested by the Company
E. Any debt obligations that either Seller or Buyer may have with Farmasi must be satisfied prior to the
approval of the sale or transfer by the Company.
F. An Entrepreneur who sells his or her business is not eligible to re-enroll as an Entrepreneur in any
organization for twelve (12) full calendar months following the date of the sale except as otherwise expressly set forth in these Policies and Procedures.
G. The Transfer/Sale will be approved or denied at the sole discretion of Farmasi.
10.6 Separating an Entrepreneur’s Farmasi Business
A. Pending a divorce or dissolution of a partnership or other business entity, the parties must adopt one
of the following methods of operation:
I. One of the parties may, with the written consent of the other(s), operate the Farmasi business whereby the relinquishing Spouse, shareholders, partners, members or trustees authorize the Company to deal directly and solely with the other Spouse, non-relinquishing shareholder, partner, member or trustee;
II. The parties may continue to operate the Farmasi business jointly on a “business as usual”
basis, whereupon all compensation paid by the Company will be paid in the name designated as the Entrepreneur or in the name of the entity to be divided, as the parties may independently agree between them. If no name is stipulated, Farmasi will pay compensation to the name on record and in such event, the Entrepreneur named on the account shall indemnify Farmasi from any claims from the other business owner(s) or the other Spouse with respect to such payment.
B. The Company recognizes only one Downline organization and will issue only one commission check
per Farmasi business per commission cycle. Under no circumstances will the Downline of an organization be divided, nor will Farmasi split commission and/or bonus checks.
C. If a relinquishing Spouse, partner, or owner of the business has completely relinquished
(“Relinquishing Party”), in writing, all rights to the original Farmasi business, he or she may immediately thereafter re-enroll under the Sponsor and Placement of his or her choice. In such cases, however, the Relinquishing Party shall have no rights to, and shall not solicit, any Entrepreneur or active Customer in the former organization, and must develop a new business in the same manner as any other new Entrepreneur. An Entrepreneur in the Relinquishing Party’s former Downline who wishes to transfer to the Relinquishing Party’s new organization or to any other organization, must comply with the requirements in Section 12.5.
A. Upon the death or incapacity of an Entrepreneur, the Entrepreneur’s corresponding business may be passed on to his or her legal successors in interest (successor). Whenever a Farmasi business is transferred by will or other testamentary process, the successor acquires the right to collect all bonuses and commissions of the deceased Entrepreneur’s sales organization. The successor must:
I. Complete and sign a new Entrepreneur Agreement
II. Comply with the terms and provisions of the Entrepreneur Agreement; and
III. Meet all the qualifications for the last rank achieved by the former Entrepreneur.
B. Bonus and commission checks of a Farmasi business transferred based on this section will be paid in a single check to the successor. The successor must provide the Company with an “address of record” to which all bonus and commission Payments will be sent. Payments will be based on the current performance of the business, not the highest rank or volume achieved.
C. If the business is passed on to joint devisees (successors), they must form a business entity and acquire a Federal taxpayer identification number. Farmasi will issue all bonus and commission payments and one 1099 Miscellaneous Income Tax form to the managing business entity only.
D. Appropriate legal documentation must be submitted to the Company Compliance Department to ensure the transfer is done properly. To affect a testamentary transfer of a Farmasi business, the successor must provide the following to the Company Compliance Department:
I. A certified copy of the death certificate; and
II. A notarized copy of the will or other appropriate legal documentation establishing the successor’s right to the Farmasi business.
E. To complete a transfer of the Farmasi business because of incapacity, the successor must provide
the following to the Company Compliance Department:
I. A notarized copy of an appointment as trustee
II. A notarized copy of the trust document or other appropriate legal documentation establishing the trustee’s right to administer the Farmasi business; and
III. A completed Entrepreneur Agreement executed by the trustee.
F. If the successor is already an existing Entrepreneur, the Company will allow such Entrepreneur to
keep his or her own business plus the inherited business active for up to six (6) months. By the end of the 6-month period, the Entrepreneur must have compressed (if applicable), sold or otherwise transferred either the existing business or the inherited business.
G. If the successor wishes to terminate the Farmasi business, he, she or it must submit a notarized
statement stating the desire to do so, along with a certified copy of the death certificate, appointment as trustee, and/or any other appropriate legal documentation.
H. Upon written request, Farmasi may grant a one (1) month bereavement waiver and pay out at the
last “paid as” rank.
10.8 Resignation/Voluntary Cancellation
A. An Entrepreneur may immediately terminate his or her business by submitting a written notice or
email to the Company Compliance Department. The written notice must include the following:
I. The Entrepreneur’s intent to resign;
II. Date of resignation;
III. Farmasi Identification Number;
IV. Reason for resigning; and
B. An Entrepreneur may not use resignation or voluntary cancellation as a way to immediately change
Sponsor and Placement. Instead, the Entrepreneur who has voluntarily resigned is not eligible to reapply for a business or have any financial interest in a or any Farmasi business for six (6) months from the receipt of the written notice of resignation.
C. Following any voluntary cancellation, an Entrepreneur:
I. Shall have no right, title, claim or interest to any commission or bonus from the sales generated by the Entrepreneur’s former organization or any other payments in association with the Entrepreneur’s former independent business
II. Effectively waives any and all claims to property rights or any interest in or to the Entrepreneur’s former downline organization
III. Shall receive commissions and bonuses only for the last full pay period in which he or she was active prior to cancellation, less any amounts withheld during an investigation preceding an involuntary cancellation, and less any other amounts owed to the Company.
10.9 Involuntary Termination
A. The Company reserves the right to terminate an Entrepreneur’s Farmasi business for, but not limited
to, the following reasons:
·Violation of any terms or conditions of the Entrepreneur Agreement
·Violation of any provision in these Policies and Procedures
·Violation of any provision in the Compensation Plan
·Violation of any applicable law, ordinance, or regulation regarding the Farmasi business
·Engaging in unethical business practices or violating standards of fair dealing; or
·Returning over $ 1.000 worth of products, services and/or sales tools for a refund within a twelve (12) month period.
B. Farmasi will notify the Entrepreneur in writing at the last known address of the intent to terminate
the Entrepreneur’s business and the reasons for termination. The Entrepreneur will then have seven (7) calendar days from the date of such notice to appeal the termination in writing. Farmasi must receive the Entrepreneur’s written appeal within seven (7) calendar days of the date of the termination letter. If the written appeal is not received within this time, the termination will be considered final.
C. If the Entrepreneur does file a timely appeal of termination, the Company will review its decision,
along with any other information it may deem relevant, reconsider any other appropriate action, and notify the Entrepreneur of its decision. The decision of the Company is then considered final and not subject to further review.
D. If the termination is not rescinded, the termination will be effective as of the date of the original
termination notice by the Company. The former Entrepreneur shall thereafter be prohibited from using the names, marks or signs, labels, stationery, advertising, or business material referring to or relating to any Farmasi products or services. The Company will notify the active Upline Sponsor of the termination, and the organization of the terminated Entrepreneur will “roll up” to the active Upline Sponsor on record.
E. The Entrepreneur who is involuntarily terminated by the Company may not reapply for a business,
either under the present name or any other name or entity, without the express written consent of an officer of Farmasi. In any event, such Entrepreneur may not re-apply for a business for twelve (12) months from the date of termination.
11.0 DISCIPLINARY SANCTIONS
11.1 Imposition of Disciplinary Action - Purpose
It is the spirit of Farmasi that integrity and fairness should pervade its sales force, thereby providing everyone with an equal opportunity for all Entrepreneurs to build a successful business. Therefore, We reserve the right to impose disciplinary sanctions at any time, when We determine that an Entrepreneur has violated the Agreement, any of these Policies and Procedures, or the Compensation Plan as may be amended from time to time by the Company.
11.2 Consequences and Remedies of Breach
Disciplinary actions may include one or more of the following:
·Monitoring an Entrepreneur’s conduct over a specified period of time to assure compliance
·Issuance of a written warning or requiring the Entrepreneur to take immediate corrective action
·Imposition of a fine (which may be imposed immediately or withheld from future commission payments) or the withholding of commission payments (“Commission Hold”) until the matter causing the Commission Hold is resolved or until the Company receives adequate additional assurances from the Entrepreneur to ensure future compliance;
·Suspension from participation in Company or Entrepreneur-related events, rewards, or recognition
·Suspension of the Entrepreneur Agreement and your business for one or more pay periods
·Involuntary termination of the Entrepreneur Agreement and your business
·Any other measure which We deem feasible and appropriate to justly resolve injuries caused by the Entrepreneur’s violation or contractual breach, OR
·Legal proceedings for monetary or equitable relief.
12.0 DISPUTE RESOLUTION
If an Entrepreneur has a grievance or complaint against another Entrepreneur regarding any practice or conduct relating to their respective Farmasi businesses, the Entrepreneur is encouraged to resolve the issue directly with the other party. If an agreement cannot be reached, it must be reported directly to the Company Compliance Department as outlined below.
A. The Compliance Department will be the final authority on settling such grievance or complaint and its written decision shall be final and binding on the Entrepreneurs involved.
B. Farmasi will confine its involvement to disputes regarding Farmasi business matters only. We will not decide issues that involve personality conflicts or unprofessional conduct by or between Entrepreneurs outside the context of Company business. These issues go beyond the scope of the Company and may not be used to justify a Sponsor, placement change or transfer.
C. Farmasi does not consider, enforce, or mediate third party agreements between Entrepreneurs, nor does it provide names, funding, or advice for obtaining outside legal counsel.
Process for Grievances:
An Entrepreneur should submit an email directly to the Company Compliance Department. The letter shall set forth the details of the incident as follows:
I. The nature of the violation and specific facts to support such allegations
II. Dates and the number of occurrences
III. Persons involved; and
IV. Any other supporting documentation.
V. Upon receipt of the written complaint, the Company will conduct a general investigation.
The Company will make a final decision and timely notify the Entrepreneurs involved.
A. Any controversy or claim arising out of or relating to the Agreement and/or these Policies and
Procedures (or the breach thereof), your business or any other dispute between the Company and you, shall be settled by binding and confidential arbitration administered by the American Arbitration Association under its commercial arbitration rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Any such arbitration shall be held in Miami, Florida. There shall be one arbitrator, who shall have expertise in business law transactions and who shall be knowledgeable in the direct selling industry, selected from a panel provided by the American Arbitration Association.
B. The prevailing party in any such arbitration shall be entitled to receive from the losing party, all costs
and expenses of arbitration, including reasonable attorney’s fees and filing fees. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to judgment in any court of competent jurisdiction.
C. This agreement to arbitration shall survive any termination or expiration of the Agreement.
C. Nothing in these Policies and Procedures shall prevent Farmasi from applying for or obtaining from
any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction, or other relief available to safeguard and protect the Company’s interests or its Confidential Information prior to, during or following the filing of an arbitration or other proceeding, or pending the rendition of a decision or award in connection with any arbitration or other proceeding.
D. NO CLASS ACTION, OR OTHER REPRESENTATIVE ACTION OR PRIVATE ATTORNEY GENERAL ACTION
OR JOINDER OR CONSOLIDATION OF ANY CLAIM WITH A CLAIM OF ANOTHER PERSON OR CLASS OF CLAIMANTS SHALL BE ALLOWABLE.
E. These Policies and Procedures and any arbitration involving an Entrepreneur and the Company shall
be governed by and construed in accordance with the laws of the state of Florida, without reference to its principles of conflict of laws.
In any case which arises from or relates to the wrongful termination of the Entrepreneur Agreement and/or an Entrepreneur’s Farmasi business, the Company and Entrepreneur agree that damages will be extremely difficult to ascertain. Therefore, the Company and Entrepreneur stipulate that if the involuntary termination of the Entrepreneur Agreement and/or loss of the Entrepreneur’s Farmasi business is proven and held to be wrongful under any theory of law, the Entrepreneur’s sole remedy shall be liquidated damages calculated as follows:
I. For Entrepreneur’s at the “Paid As” rank of 18% or above (with the exception of paragraph II below), liquidated damages shall be in the amount of his/her gross compensation that he/she earned pursuant to the Farmasi Compensation Plan in the twelve (12) months immediately preceding the termination.
II. For Entrepreneur’s at the “Paid As” rank of 22%, liquidated damages shall be in the amount of his/her gross compensation that he/she earned pursuant to the Farmasi Compensation Plan in the twenty-four (24) months immediately preceding the termination.
In any action arising from or relating to the Agreement, the Farmasi business, or the relationship between the Company and Entrepreneur, both parties waive all claims for incidental and/or consequential damages, even if the other party has been apprised of the likelihood of such damage. The Company and Entrepreneur further waive all claims to exemplary and punitive damages.
If any provision of these Policies and Procedures is found to be invalid, or unenforceable for any reason, only the invalid provision shall be severed. The remaining terms and provisions hereof shall remain in full force and shall be construed as if such invalid or unenforceable provision never had comprised a part of these Policies and Procedures.
Only an officer of Farmasi can, in writing, affect a waiver of these Policies and Procedures. The Company’s waiver of any breach by an Entrepreneur shall not affect Our rights with respect to any subsequent breach, nor shall it affect the rights or obligations of any other Entrepreneur.
The existence of any claim or cause of action of an Entrepreneur against the Company shall not constitute a defense to Our enforcement of any term or provision found in these Policies and Procedures.
12.6 Successors and Claims
The agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.
13.0 GOVERNING LAW
These Policies and Procedures shall be governed by and construed in accordance with the Laws of the State of Florida and the exclusive jurisdiction of the United States courts.