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North America Franchise Earnings

North America Franchise Earnings. Critical Element of Franchise Success?. Build a Prosperous Team. As Your Team Grows, Earnings Grow. Encourage and Reward Team Building. Modify Rank Requirements Modify Fast Start Bonus Modify Bonus Pools Introduce Enroll and Place Option

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North America Franchise Earnings

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  1. North America Franchise Earnings

  2. Critical Element of Franchise Success?

  3. Build a Prosperous Team

  4. As Your Team Grows, Earnings Grow

  5. Encourage and Reward Team Building • Modify Rank Requirements • Modify Fast Start Bonus • Modify Bonus Pools • Introduce Enroll and Place Option • Introduce Weekly Pay Program

  6. Modify Rank Requirements • Objectives • Align rank requirements with natural team building • Allow Franchisees to leverage fast-growing legs by loosening leg structure requirements • Increase earnings for presidential ranks

  7. Modified Rank Requirements

  8. Rank Requirements • Qualification Requirements • No change to PV, GV, Auto Refill requirements • Leg Balance – No more than 60% OV in one leg • Horizontal Compression is applied to the smallest leg requirement • President’s Club and Chairman’s Club must achieve leg and OV requirements for 3 consecutive months

  9. Transition Existing Franchisees – may qualify with new orprior requirements through 2010 All new Franchisees – effective July 1, 2010 will use new requirements

  10. Modify Fast Start Bonus

  11. Modify Fast Start Bonus • Objectives • Align Fast Start Bonus with team building • Simplify Fast Start Bonus • Introduce "Good, Better, Best" options for starting a Franchise • Encourage team-building within first 6 levels • Eliminate "early volume" being out of payline or rank qualification

  12. Fast Start Bonus • Modifications • Pay Fast Start Bonus on qualified levels rather than shares • Introduce ranks of Associate and Jr. Manager • Increase payout as higher ranks are achieved • Eliminate 90 day period--pay all first-month volume under Fast Start Bonus

  13. Ongoing Fast Start Bonus • Note: • GV requirement for Associate through Manager is one month only • Members with GV from 100 to 249 points will receive 5% on Level 1

  14. Fast Start Bonus Example #1 Bonus 5% Dir 4% Sr. Mgr 3% Jr. Mgr 20% Assoc. New F.O.

  15. Fast Start Bonus Example #2 Sr. Mgr Sr. Manager earns 4% on first-month volume of new team member joining 4 levels down in the team Level 1 Mgr Level 2 Jr. Mgr Level 3 Assoc. Level 4 New F.O.

  16. Fast Start Bonus • Additional Information • Qualified Levels are established by 100 PV for Associates, Jr. Managers and Managers and normal rank requirements for Sr. Managers and higher • First-month volume up to 1,000 points is paid to the enroller and upline as outlined • First-month volume over 1,000 points is paid as outlined beginning with the new Franchisee

  17. Modify Director Bonus Pools

  18. Modify Director Bonus Pools • Objectives • Maintain excitement about the bonus • Structure the bonus to reward team building • Eliminate confusion about bonus amounts • Encourage behavior of growth and sustainability • Create bridge to Sapphire rank

  19. New Team Builder Bonus • Modifications • Modify Director Bonus Pools into a Team Builder Bonus • Link Organizational Volume to specific bonus amounts • Incorporate payments into regular commission payment timing

  20. Team Builder Bonus • Ten bonuses • Earn each bonus once • Bonus grows as OV grows • No time limit • Total potential of $20,000

  21. Team Builder Bonus • Qualification • Personally sponsor at least 3 Franchisees frontline and help them achieve the rank of Associate • Leg Balance – No more than 60% OV in one leg • Bank and Release – Two options for bonus to be released: • Hold OV level for consecutive months • Move up to next Team Builder level

  22. Team Builder Bonus Example #1 • Franchisee achieves 3,000 OV in third month • $500 bonus is “banked” • Franchisee confirms at least 3,000 OV in fourth month • $500 bonus is paid

  23. Team Builder Bonus Example #2 • Franchisee achieves 5,000 OV in first month • $500 bonus is paid and $1,000 bonus is “banked” • Franchisee confirms at least 5,000 OV in second month • $1,000 bonus is paid

  24. Team Builder Bonus Example #3 • Franchisee achieves 10,000 OV in first month • $3,000 bonus is paid and $2,000 bonus is “banked” • Franchisee confirms at least 10,000 OV in second month • $2,000 bonus is paid $5,000 Bonus

  25. Team Builder Bonus – Tranistion • Existing Franchisees are eligible to earn the Team Builder Bonus • Starting point will be based on April OV • Must move up to the next Bonus Level

  26. Team Builder Bonus – Transition Example • Achieved 12,000 OV in April • Eligible to earn Team Builder Bonus for the 15,000 OV level • Must achieve 15,000 OV and confirm it a second month to receive the $2,000 Team Builder Bonus • Could also skip up to 20,000 OV

  27. Introduce Enroll and Place

  28. What is Enroll and Place?

  29. Enroll and Place Option allows Franchisees to enroll new people and place them somewhere on their team other than frontline

  30. Enroll and Place • Objectives • Allow leaders to place new Franchisees in natural teams • Provide both Enroller and Sponsor as mentors to new Franchisee • Encourage “pay it forward” principle

  31. Enroll and Place Program Placement must be done at time of enrollment Placement must be within three levels Enroller retains fast start and future downline fast start Sponsor receives volume for qualification and residual commissions

  32. Enroll and Place Example • Director (Enroller) recruits new Franchisee • Director identifies commonality between Jr. Manager and new Franchisee • New Franchisee is placed under Jr. Manager (Sponsor) • Enroller receives Fast Start Bonus, Sponsor receives ongoing commissions Enroller Dir Mgr Sponsor Jr. Mgr New F.O. Placement

  33. Introduce Weekly Pay Program

  34. Weekly Pay Program • Objectives • Pay Fast Start Bonus more quickly • Build belief in Franchise Model • Allow Franchisees to “turn” investment more quickly

  35. Weekly Pay Program Program Existing Franchisees must register for Unicity Awards Visa Card All new Franchisees will be paid commissions via card Weekly Franchise building period runs from Sunday midnight to Sunday midnight Weekly payments will be credited to the card on Thursdays Initially, Fast Start Bonus Level 1 will be paid

  36. Weekly Pay Program • Online Citibank account • Instant access to funds • No more waiting for checks to arrive or clear • Check balances or transfer funds online • Use like Visa debit card • Low ATM cash withdrawal fees • Use card to make Unicity purchases

  37. Weekly Pay Card Register for Card in Franchise Office Starting May 5

  38. Implementation Timing - Recap • Rank Requirements – July for new Franchisees, Jan 2011 for existing Franchisees • Fast Start Bonus – May • Team Builder Bonus – May • Enroll and Place Option – May through Customer Service, Online beginning June • Weekly Pay Program – Order cards in May, weekly pay begins first week in June

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