Chapter 13: Miscellaneous UnFranchise Owner Rights and Obligations

 

SEC. 1    Proprietary and Trade Secret and confidential Information

(A)    UnFranchise Owners Responsibility: UnFranchise Owners may be given access to certain confidential information, reports, and material regarding Market Hong Kong’s business, including but not limited to; UnFranchise Owner lists, UnFranchise Owner and customer contact information, UnFranchise Owner financial data, a UnFranchise Owner’s personal and/or group sales volume(s), linkage and/or genealogy information, the GMTSS, Market Hong Kong voicemail system, business building/marketing materials (printed, web-based, social media, on film, magnetic media produced by sound recording or otherwise embodied, are copyrighted and/or trademarked/service marked, whether such claim or mark is registered, or in the process of such)  (collectively “Proprietary and Confidential Information)”. All Proprietary and Confidential Information belongs solely and exclusively to Market Hong Kong and its affiliates and constitutes its trade secrets. UnFranchise Owners have no claim, right, or title to any of the Proprietary and Confidential Information; and that the Proprietary and Confidential Information is provided to UnFranchise Owners in strictest confidence and is made available to UnFranchise Owners for the sole purpose of assisting in building and growing their Market Hong Kong business.  

To protect the Proprietary and Confidential Information, UnFranchise Owners shall not, on their behalf or on behalf of any other person or entity, directly or indirectly:

       (1)    Disclose or disseminate any Proprietary and Confidential Information to any other person or entity;

       (2)    Provide access to any password-protected sections of Market Hong Kong’s web sites and associated social media pages containing Proprietary and Confidential Information to any other person or entity;

       (3)    Use Proprietary and Confidential Information for any purpose other than the conduct and promotion of your Market Hong Kong business, including but not limited to recruiting any UnFranchise Owner for any Competing Company;

       (4)    Use Proprietary and Confidential Information to attempt to influence or induce any UnFranchise Owner, customer, or employee of Market Hong Kong to cease or alter their business relationship with Market Hong Kong; or

       (5)    Reproduce Proprietary and Confidential Information in whole or in part for any UnFranchise Owner or any other person except as authorized in writing by Market Hong Kong to ensure the quality, integrity, and service of these valuable business assets remains protected.
Upon termination or cancellation of the IUA&A, the UnFranchise Owner must return all Proprietary and Confidential Information in its entirety to Market Hong Kong.Responsibility: s'nchise owner rights and obligations (B) of this section, 

(B)    UnFranchise Owner Liability for Breach of Confidentiality by Agent: UnFranchise Owners may choose to hire one or more employees, agents, consultants and/or contractors (Agents) to assist them in the operation of their Market Hong Kong business. An UnFranchise Owner will be solely responsible and liable to Market Hong Kong (or to a Preferred Customer or other UnFranchise Owner) for any breach or misuse of the Proprietary and Confidential Information by the UnFranchise Owner or his/her Agent. Therefore, Market Hong Kong strongly encourages any UnFranchise Owner with an Agent, to require the Agent to sign a binding Proprietary and Confidentiality Agreement, prior to the disclosure of any Proprietary and Confidential Information to the Agent.  


SEC. 2    INDEMNIFICATION OF MARKET HONG KONG

Each UnFranchise Owner agrees to indemnify and hold harmless Market Hong Kong, its officers, agents and directors against any claims, demands, liability, loss, cost or expense, including, but not limited to, legal fees arising or alleged to arise in connection with that UnFranchise Owner’s business.


SEC. 3    VENDOR/MANUFACTURER INFORMATION

UnFranchise Owners may not communicate (including phone calls, e-mails, etc.) directly with Market Hong Kong’s manufacturers, suppliers or vendors without written permission from Market Hong Kong (the only exception being acceptable contact at corporate-sponsored events).

(A)    Vendor Contact/Communication: UnFranchise Owners may not, under any circumstances, arrange for Market Hong Kong manufacturers, suppliers or vendors to attend or speak at meetings or conduct product training.

       (1)    Market Hong Kong will make all arrangements, and only Market Hong Kong periodically shall book such engagements (i.e. training).

       (2)    Violation of this policy is grounds for immediate termination. 

(B)    Product Information: Additional product information, as needed, shall be obtained only through contacting the Market Hong Kong Product Information Department.

(C)    Prohibition of Benefits: UnFranchise Owners are not permitted to receive commissions, free or discounted products, bonuses, nor any other benefit from any current or prospective vendor, manufacturer or supplier to Market Hong Kong, for arranging contact between Market Hong Kong and the vendor, manufacturer or supplier.


SEC. 4    VOICE MAIL ACCESS TO MARKET HONG KONG GROUPS

Market Hong Kong has arranged with its approved voice mail provider to provide voice mail services for Market Hong Kong UnFranchise™ Owners. UnFranchise Owners who purchase voice mail services will sign a separate agreement with the voice mail provider. However, Market Hong Kong reserves the exclusive right to determine who has access to other Market Hong Kong UnFranchise Owners through the voice mail provider through which Market arranges voice mail service for its UnFranchise Owners. 

(A)    Policy Violations Investigations: If Market Hong Kong receives information that an UnFranchise Owner has breached his/her Independent UnFranchise Owner Application and Agreement or violated the company’s policies and procedures, Market Hong Kong may, at its sole discretions, instruct the voice mail provider to block the UnFranchise Owner’s access to other Market Hong Kong UnFranchise Owner through the voice mail system. Market Hong Kong will promptly review the evidence of the UnFranchise Owner’s breach or violation and notify him/her whether, or under what circumstances, Market Hong Kong will instruct the voice mail provider to remove the block on his/her voice mail. 

(B)    Cancellation of UnFranchise Owner Contract: If Market Hong Kong cancels or does not renew the UnFranchise Owner’s Independent UnFranchise Owner Application and Agreement, or if the UnFranchise Owner otherwise ceases to be an active Market Hong Kong UnFranchise Owner for any reason, Market Hong Kong may, at its sole discretion, instruct the voice mail provider to block the UnFranchise Owner’s access to other Market Hong Kong UnFranchise Owners through the Voice Mail System.

(C)    Right to Service: If for any reason Market Hong Kong instructs the voice mail provider to block a UnFranchise Owner’s or former UnFranchise Owner’s access to other Market Hong Kong UnFranchise Owners through the voice mail system, the blocked UnFranchise Owner will have the option to continue his/her voice mail service, under the terms of his/her agreement with the voice mail provider, without access to the Market Hong Kong voice mail groups.


SEC. 5    SOLICITATION OF DONATIONS AND CONTRIBUTIONS

Contacts made through Market Hong Kong should be used exclusively for Market Hong Kong purposes. These contacts are proprietary information belonging to the company, to which UnFranchise Owners agree at the time they sign the Independent UnFranchise Owner Application and Agreement.

UnFranchise Owners agree not to solicit other Market Hong Kong UnFranchise Owners and/or customers, except for their personally sponsored UnFranchise Owners and persons they know independently of any Market Hong Kong contact, for any purpose other than Market Hong Kong business activities. This policy includes solicitations for other business activities, regardless whether such activity is network marketing or some other type of business, political campaigns and charitable activities and events. UnFranchise Owners must not seek to take advantage of their Market Hong Kong connections to obtain donations for charitable events. UnFranchise Owners should not send out correspondence of any kind, including but not limited to mailings, voice mails or printed material, other than to personally sponsored UnFranchise Owners, soliciting donations. Solicitation at GMTSS events as a speaker, coordinator or participant is prohibited.

From time to time the company may sponsor or promote charitable activities among UnFranchise Owners. These activities are exempt from this policy. UnFranchise Owners may direct inquiries regarding the permissibility of any solicitation to Market Hong Kong, attention to the Vice President of Operations.


SEC. 6    MARKET HONG KONG’S UNFRANCHISE OWNERS PRIVACY POLICY

We appreciate the trust you place in Market Hong Kong, and we are committed to respecting your privacy and the security of your personal information. Our privacy policy describes the information we collect and how we use it. 

(A)    Information We Collect: To best serve your needs, we will, from time to time, collect certain information from you. The information we collect may include, without limitation, your name, Hong Kong Identification Number, Business Registration Number, address, telephone number, email address, corporate information, testimonial, credit card information and date of birth. Personal information will be collected at various times including, without limitation, when you:  

•    Submit an Independent UnFranchise Owner Application & Agreement 
•    Register a Preferred Customer
•    Apply to change the name or ownership of your UnFranchise Business
•    Apply to be a Business Entity UnFranchise Business
•    Order or reorder products by telephone or on our Web site 
•    Write an email or letter to Market Hong Kong
•    Submit a testimonial or personal success story to Market Hong Kong
•    Order tickets to an event or seminar
•    Return an item or make an exchange 
•    Participate in a marketing survey, promotion or event 
•    Attend an event or seminar
•    Contact our customer service department
•    Navigate the Web site 

(B)    Using Information We Collect: We want to provide you with the best possible internet experience and fulfill your orders exactly as you've requested. Additionally, we want to make your experience as an UnFranchise™ Owner or Sales Representative a pleasant and successful one. In order to do this, we collect information that allows us to, without limitation:

•    Process your order 
•    Provide the products and services you request 
•    Send you promotional offers 
•    Identify the product and service preferences of you and your customers
•    Customize our communications to you 
•    Provide information concerning products you have purchased for personal use or sale
•    Improve our product selection and customer service 
•    Share your positive product testimonials and personal success stories with others     
•    Enter into an UnFranchise Owner (or Sales Representative) relationship with you 
•    Track and credit BV and IBV
•    Monitor your compliance with Market Hong Kong rules and policies
•    Include your name, stories, testimonials, images and commission income information in Market Hong Kong publications and literature, in newspapers, magazines or other media, at Market Hong Kong events, on Market Hong Kong CDs and DVDs, in any other Market Hong Kong communications to the field or others, or as otherwise deemed useful or appropriate by Market Hong Kong.    

(C)    Information We Share with Others and Your Privacy Rights:

       (1)    It is not a practice of Market Hong Kong to sell, rent or trade personal information. In order to service our UnFranchise Owners, Sales Representatives and Preferred Customers, we share limited personal information with our UnFranchise Owners and affiliates. Market Hong Kong's UnFranchise Owners are obligated to treat the information you supply with confidentiality.  

       (2)    We contract with other companies to provide certain services, including without limitation credit card processing, IT consulting, printing, shipping, internet services, e-commerce, and public and media relations. We make every effort to provide these companies with only the information they need to perform their services. Generally, such companies are prohibited from sharing this information with anyone other than Market Hong Kong.

       (3)    On rare occasions, we may disclose specific information upon governmental request, in response to a court order, or when required by law to do so. We may also share information with companies assisting in fraud protection or investigation. We do not provide information to these agencies or companies for marketing or commercial purposes.

(D)    Cookies: Market Hong Kong uses cookies on our websites. A cookie is a small data file that is stored by your web browser on your computer. Cookies allow us to enhance, personalize and track your online experience, so that the information you receive is more relevant to you. This technology will allow you to move faster through our website once the information is in our database since you do not have to re-enter the same information or log in each time you enter the site. 

(E)    How We Use Email: When you provide us your email address, we may send you emails necessary to process your order, respond to a request, provide customer service, promote products or services, or assist you in growing your business, inform you about products, services or promotional materials and assist you with the promotion of products and services to your customers. It is our intent to send promotional e-mails only to those persons who wish to receive them. We provide instructions on how to unsubscribe in our emails.   

(F)    Links to Other Sites: We provide links on our website to other sites. These sites operate independently of Market Hong Kong and have established their own privacy and security policies. We encourage you to review these policies at any site you visit.

(G)    Updating or Reviewing Your Information: You may review or update your UnFranchise Owner information (name, address, telephone number, email address, credit card number, etc.) on this website (UnFranchise.com) under My Account, UnFranchise Owner Profile. 

(H)    Security:

       (1)     Market Hong Kong is committed to protecting the privacy of your personal information. It is our intent to protect against the loss, misuse or alteration of information that we have collected from you. We use a variety of current technologies and processes for protection of information we collect, and we limit the information we provide to third parties.  

       (2)     When you make a purchase or submit an Independent UnFranchise Owner Application & Agreement or other document on our Web site, your transactional information is transmitted in a safe, encrypted format. 

(I)    Privacy of Children on Our website: Our Web site is not intended for use by anyone under the age of 18. We do not knowingly collect personal information from persons under the age of 18. 

(J)    Policy Changes: From time to time, we may use customer information for unanticipated uses not previously disclosed in our privacy notice. If our information practices change, we will post these changes on our website. We encourage you to review our privacy policy periodically.

(K)    Your Consent: By using Market Hong Kong facilities and continuing to order products and services, you consent to the collection and use of your personal information as detailed in this privacy policy.

(L)    Contact Us: We always welcome your questions and feedback. For privacy-related issues, please contact us at privacy@marketamerica.com.


SEC. 7       PREFERRED CUSTOMER AND BUSINESS LEAD REFERRALS

In the event individuals initially learn about and/or are introduced to Market Hong Kong and SHOP.COM’s business, technology and/or products by visiting markethongkong.com.hk, hk.shop.com, any of the product brand sites, incoming calls, email inquiries, etc. these individuals will be referred to eligible UnFranchise Owners.

(A)    Market Hong Kong will make every attempt to identify if any potential Preferred Customer or business lead is already connected to an existing UnFranchise Owner. If and when this is identified, Market Hong Kong will attempt to reconnect the lead to the identified UnFranchise Owner.

(B)    If a potential Preferred Customer or business lead was not identified to be connected to an existing UnFranchise Owner, Market Hong Kong will refer the lead to an eligible UnFranchise Owner. Once the Preferred Customer or business lead is assigned to an UnFranchise Owner, all future BV, IBV and/or retail profit will be credited to the assigned UnFranchise Owner. Any BV, IBV and/or retail profit created prior to the assignment of the Preferred Customer or business lead, will be retained by Market Hong Kong to offset the costs associated with marketing and servicing the leads.


SEC. 8        ESSENTIAL FUNCTIONS OF AN UNFRANCHISE™ OWNER

A Market Hong Kong UnFranchise Business is a business. Ideally, it should be approached with a sense of purpose. As a business owner, each UnFranchise Owner is ultimately responsible for carrying out the essential functions of an UnFranchise Business for himself or herself. These essential functions include, without limitation: (A) retail selling, (B) quarterly verification of retail sales (Form HK1000), (C) attending any required training classes, and (D) completing and submitting the Annual Renewal and other applicable agreements with the company. Market Hong Kong places great value on UnFranchise Owners helping other UnFranchise Owners, even when they are in different sales organizations. However, company policy does not permit an UnFranchise Owner (or any third party) to operate the business of another UnFranchise Owner or perform the essential functions of another UnFranchise Owner.