RULES & REGULATION
RULES & REGULATION

The following Rules & Regulation of Flabia Fresh (the Company) are formulated and implemented for safeguarding right and dignity of the Distributors while regulation conduct of business. In order to mould yourself as a responsible and ethical distributor of Flabia, one must understand and be abide by the policies of the Company and its Rules and Regulations. Any violation of the same can result in termination of your distributorship.

The Company reserves the right to amend its Policies, Rules and Regulations/Norms without causing prior notice or clarification. You are expected to browse the Company’s website from time to time and keep yourself abreast with updated policies, rules and regulations.

1. Eligibility criteria to become a Distributor
Individuals :

  1. Individuals aged 18 years and above can apply to be a distributor of the Company
  2. The Company has absolute discretion to decide whether to accept or reject an application
  3. Distributor of the company is not an agent, representative or employee. The relationship is based on principal to principal
  4. All applications must be sponsored by an existing distributor
  5. Wife and husband constitutes a single unit for the purpose
  6. Son or unmarried daughter of a Distributor can join the Business with their independent ID if the line of sponsorship is under their family ID, Similarly any of the family member can join under their son / unmarried daughter

Partnership firms, LLP. Company, Society and Trust) :

  1. In such cases registration shall be in the name of the legal entity
  2. A copy of the constitution, deed, articles of the association along with certificate of institution / incorporation, as may be applicable for the entity and PAN CARD should be submitted along with the application form. In case of HUF, copy of PAN CARD would suffice
  3. Liability and entitlement of such entity is as per law of the land Bonus payment which would be made by the company in the name of the entity
  4. Any change in constitution of the entity should be intimated to the Company and a fresh application form should be submitted along with the new / updated constitution. Company reserves the right to refuse registration of such new / fresh composition or constitution
  5. Company will communicate only with a person / official duly authorized by the entity under written intimation to the company in advance
  6. In case of dissolution / winding up / insolvency of the entity bonus entitlement / arrears, if any shall be released to the successor entity upon submission of proof acceptable to the company. Claim(s) in this respect shall not be entertained after 90 days from the incident of dissolution / winding up or declaration of insolvency

2. Payout policy

  1. Bonus for all distributors is computed weekly, monthly & yearly and commensurate with the business done in the relevant Sales month. Pay outs will be issued by the Company to the registered distributor
  2. On receipt of payout Distributors should check accuracy of computation. Any queries in this respect should be made within 14 days from the date of issuance of payout by the company in the absence of such queries the figures mentioned in the statement shall be final and binding
  3. Distributors are required to provide their addresses and bank particulars and update the same when any change takes place. Company shall not be liable for non-receipt of payout due to change in address of e-mail id, or bank particulars

3. Procedures for violation policy

The company provides guidance and advice to deal with situations involving breaches and violation of its policies and the rules and regulations. The company shall also take appropriate action against the Distributor’s involved. In the event of any violation, the following procedure needs to be observed:

  1. A complaint has to be lodged immediately upon coming to know about violation of any and all policy, rules and regulations. The complainant must fill in the Customer Feedback Form by giving details of the alleged violation, also he / she requires to inform his / her up line about the complaint
  2. Upon receiving the complaint, company shall immediately notify the Distributor involved requesting a swift response by way of a chance to explain his / her case. Company may in appropriate case institute such action sue motto
  3. In case of inadequate information the company may request for more details from either party.
  4. If the Company is convinced that the only way to restore normalcy is to suspend or terminate distributorship, it shall convert its decision by writing a letter to the distributor concerned. The letter shall be posted through registered mail / courier to the last known address of the Distributor as listed in Company’s database and the post-mark shall be taken as proof of receipt. The company reserves the right to take necessary action against the terminated Distributor including seeking compensation, recovery, damages and legal costs incurred if any. However the company reserves the right to amend or modify any part of the above decision if and when such a need is felt by the company

4. Renewal of Distributorship

The company dose not change any renewal fee. Distributorship is discontinued, if the Distributor resigns and if the resignation is accepted by the company or the Distributorship is terminated by the company. If the Distributor does not conduct any business with the Company for more than three years the Distributor will lose lien over the company. In the above cases, the Distributor will be required to put forth his claims within one month of the date of the above happenings. Thereafter no claim will be entertained. The claims will be settled as per Company’s policy

5. Valid ID

The distributor who joins the Company must do business of at least 300 BV within 30 days of joining for his ID to be valid. IF the same is not done the ID of the Distributor will be treated as invalid after the period of 30 days

6. Representations made by Distributors

  1. Distributor(s) shall not exaggerate or misrepresent benefits associated with the company association with the company and the company’s products and services
  2. Distributor(s) must know and convey that earnings come only through hard work through commitment and consistent effort
  3. Distributor(s) shall not make claims other than what mentioned in the company’s plans and literature about product, quality and earnings. Company has the unconditioned rights to take any and all action including seeking damages for distributor’s action/ inaction, inviting and causing ill repute / loss to the company for mis declaration or misrepresentation

7. Packaging and Pricing

The product description, labeling, pricing and packaging done will be determined by the Company as final and sacrosanct. No alteration is permissible in these respect. Distributor(s) are not authorized to reliable, re-pack and alter description or sale products loose or in a form which is not originally created/fixed by the company or at a price not fixed by the Company. Allegations against Distributor(s) for contravening this rule shall be investigated and appropriate/strict action will be taken accordingly.

8. Cross team sponsoring policy

No Cross Sponsoring of Distributorship shall be allowed “Cross Sponsoring” in this context is defined below :

  1. Signing up an existing Distributor from another group
  2. Signing up the wife when husband is already a Distributor or vice versa
  3. Signing up under another sponsor to operate his / her Distributorship, when his / her Distributorship is still valid
  4. Allowing other people or relative to use his / her Distributorship to do business
  5. If son or unmarried daughter joins the Business with their own ID, but their line of sponsorship is not under their family, ID then in such case it will be treated as cross sponsoring & the ID taken by son / unmarried daughter will be terminated. Same will be applicable for any of the family member those not joined who have under their son / unmarried daughter’s line of sponsorship. In the event of Cross sponsoring the following action shall be taken
  6. action shall be taken :
    • If the complaint is received constantly for more than 6 months of a Distributorship taken, another ID for the same will not be entertained. On receipt of such complaint the Company will terminate one of the ID’s of the Distributor which ever may be deem fit and the network will remain with the active ID
    • If the company receives complaint within 6 months of Cross sponsoring the Company will terminate the second ID of the Distributor and the network developed under the second ID will get terminated

However if the investigation reveals, that any of the ID’s registered was in such a manner where the management finds out is not ethical / without the knowledge of the Distributor then Company will terminate any one of the ID’s which they deem fit and the network of do the terminated ID will move upon to the next higher Distributor, the company will take action against the Distributor who managed to register ID in unethical manner.

The company reserves the right to terminate the offended distributor as its own discretion and withholds bonus payment of the offended Distributor till final settlement takes place. The Company’s decision in the above case will be final.

9. Inactive Distributor

Irrespective of the level attained if a Distributor is found not to have placed any order in preceding Six months than he / she will be termed as an ‘Inactive Distributor’ and the Company reserves the right to take a decision (including termination) in respect of his /her Distributorship. After completion of inactive period the Distributor can join under any of the Distributor after termination of the earlier ID.

10. Expiry / Cancellation / Resignation / Succession of Distributorship

  1. Any Distributor may resign from Distributorship by submitting an application. Acknowledgment of receipt of such communication constitutes resignation. A person who resigns or whose Distributorship is cancelled / terminated may reapply for Distributorship only a f t e r lapse of a period of 6 months (cooling period ) from the date of resignation / cancellation of his / her last Distributorship. In such case the person cannot have any claim whatsoever over the downline(s) business that he / she had prior to re-apply for Distributorship
  2. In case of Distributor resignation for certain unforeseen circumstances, which will subject to company’s satisfaction, he / she may transfer the Distributorship to his / her blood relative only (proper proof and documentation required). In such case, the Applicant will be the blood relative and the co-applicant will be the earlier Distributor or the spouse of the blood relative. Company’s decision in this regard will be final
  3. Distributorship in an ordinary circumstances expires upon death or proven incapacity of the Distributor. However, nominee of the deceased upon evincing interest to succeed Distributorship may be allowed by the Company. In case if the nominee does not come forward till 3 months from the date of death or incapacity of the original Distributor, the case may be successor of the deceased upon submitting appropriate documentation and evincing interest to succeed Distributorship may be allowed by the company. However under no circumstances such Distributorship will be entertained after 6 months from the date of death or knowledge of incapacitation of the distributor either from nominee or successor
  4. Distributorship may be cancelled / terminated declared unclaimed or suspended by the Company for the reasons mentioned in the Company’s policies and rules and regulations. In such cases the Company takes decision in terms of its reward / reconciliation policy

11. Marriage

  1. The company treats wife and husband as one single unit for the purpose of Distributorship.
  2. In this situation the two independent existing Distributors marry each other, upon marriage both of them are deem to surrender their Distributorship. The distributors who are married to each other shall separately intimate to the Company about their marriage within 30 days from the date of their marriage. Subject to condition of other sub-clauses of this clause one amongst them ought to resign within 30 days from the date of marriage, failing to do will result to cancellation of both Distributorship. Original downline structure of the Distributor who resigns for the reason of marriage in terms of this sub-clause shall remain unchanged. However to maintain relationship with the Company and to conduct Flabia Business, the couple may form a partnership firm in line of the model deed of partnership prescribed by the Company for the purposes of common Distributorship and can submit the same under cover of a joint application seeking Distributorship for such partnership firm within 30 days of their marriage. This partnership will replace the Distributorship of the distributor who dose not resign and the Structure will remain unchanged.
  3. Upon marriage amongst two existing distributors and they being given partnership (irrespective of their cadre / level ). They shall have a joint bank account and inform such particulars to the Company within 60 days from the date of marriage. The Company upon receipt of such intimation shall payout credit / bonus earned by the partnership him in such account. If the account is not opened no the bonus will be paid out by the Company and the partnership firm will have no lien on the bonus earned for the period. However this sub-rule will not be made applicable for Distributor couple’s who are both Gold Director and Car Fund Achiever unless they want such arrangement.
  4. If both distributors are Gold Director and Car Fund Achiever, then their individual Distributor ship’s may separately be retained at original status. However one amongst the two may resign from Distributorship / Gold Directorship and the couple may apply for single Distributorship through partnership (comprising both of them as partners). This partnership will replace the Distributorship of the Distributor who does not resign and the structure will remain unchanged. In such case Original downline structure of the Distributor who resign for reasons of marriage in terms of the sub-clause shall remain unchanged. Even in this case both of them shall separately intimate the Company about their marriage within 30 days from the date of their marriage
  5. In case such couple does not form any partnership firm within 30 days from their date of marriage or either of them does not inform factum of their marriage to the Company the Company, reserves the right to cause appropriate changes in their downline / network and merge their business(s) of two Distributor ship’s into one with conditions as may be deemed appropriate to the Company and / or cancel Distributorship of one or both as per its discretion

12. Separation

In case of divorce amongst couples having Distributorship through partnership firms, formed as aforesaid benefits of Distributorship and the Distributorship itself shall be apportioned or transferred in such and case may be in terms of the deed of partnership. Such changes in Distributorship of the partnership firm shall be caused by the Company only on completion of 90 days after receipt of the decree of divorce granted by a competent court. The Distributorship of the partnership firm of the couple shall be put under suspension with effect from the date of commencement of divorce proceedings between the couple and during pendency of divorce. Proceedings the company in its discretion may allow a special arrangement (without insisting upon lapse cooling period) to both parties to do Flabia Business separately as freshly appointed Distributors. After the judgment of the Court the suspension of the spouse in whose name the Court has approved for Distributorship to be continued can continue as a Distributor, and the partnership will stand dissolved. In case the judgment is silent on the issue, the Distributorship under partnership will stand terminated. “In cases where marriage couples are Distributor and co-applicant, they file for Divorce the co-applicant will have no right on the Business and the business will remain with the Distributor. Once the Divorce is formalized the name of the co-applicant will be removed from the system”

Distributorship itself shall be apportioned or transferred in this case & may be in terms of the deed of partnership such changes in Distributorship of the partnership firm shall be caused by the Company only on completion of 90 days after receipt of the decree of divorce granted by a competent court. The distributorship of the partnership firm of the couple shall be put under suspension with effect from the date of commencement of divorce proceedings between the couple and during pendency of divorce proceedings the company in its discretion may as a special arrangement allow (without insisting upon lapse cooling period) both parties do Flabia Business separately as freshly appointed distributors. After the judgment of the Court the suspension of the spouse in whose name the Court has approved for Distributorship to be continued can continue as a Distributor, and the partnership will stand dissolved. In case the judgment is silent on the issue, the Distributorship under partnership will stand terminated. “In case where marriage couples are Distributor and co-applicant is they filed for Divorce the co-applicant will have no right on the Business and the business will remain with the Distributor. Once the Divorce is formalized the name of the co-applicant will be removed from the system”

13. Waiver

  1. The failure of the Company to exercise any rights stated in the Company Rules and Regulations or in the Distributor Application Agreement shall not constitute a waiver of the Company’s rights to demand exact compliance there with
  2. Any waiver by the Company can and shall only be affected in writing by authorized personnel of the Company.

14. Prohibited Act

Distributor shall no :

  1. Incur any liabilities or Debt in the name or on behalf of the Company
  2. Enter info modify or alter any contact in the name of the Company
  3. Engage itself or show interest directly / indirectly as agent servant or licensee for sale of any product / goods other than those of the Company in any trade business or profession in competition with the Company

Glossary of Terms

BV : Business volume is pre-determined for each product and all calculations are based on this volume

PV : Point value determines % level of achievement

PS : Personal Sales

PGBV : Personal Group Business volume, is the business volume of your entire group & does not include the business volume of Director group

Family : Grand parents / parents / self