north america franchise earnings
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North AmericaFranchise 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
• Introduce Weekly Pay Program
Modify Rank Requirements
Objectives
1) Align rank requirements with natural team building
2) Allow Franchisees to leverage fast-growing legs by loosening leg structure requirements
3) Increase earnings for presidential ranks
Modified Rank Requirements
Rank Leg @ Points Org. Volume Director 3@1K N/A Sr. Director 3@1K 10K Sapphire 3@5K 50K Ruby 4@5K 100K Diamond 5@5K 150K Double Diamond 1 AFP@100K 500K Triple Diamond 2 AFP@100K 1 million Crown Diamond 3 AFP@100K 2 million
Qualification Requirements
1) No change to PV, GV, Auto Refill requirements
2) Leg Balance – No more than 60% OV in one leg
3) Horizontal Compression is applied to the smallest leg requirement
4) President’s Club and Chairman’s Club must achieve leg and OV requirements for 3 consecutive months
Rank Requirements
Transition
Existing Franchisees – may qualify with new or prior requirements through 2010
All new Franchisees – effective July 1, 2010 will use new requirements
Modify Fast Start Bonus
Modify Fast Start BonusObjectives
1) Align Fast Start Bonus with team building
2) Simplify Fast Start Bonus
3) Introduce "Good, Better, Best" options for starting a Franchise
4) Encourage team-building within first 6 levels
5) Eliminate "early volume" being out of payline or rank qualification
Fast Start Bonus
Modifications
1) Pay Fast Start Bonus on qualified levels rather than shares
2) Introduce ranks of Associate and Jr. Manager
3) Increase payout as higher ranks are achieved
4) Eliminate 90 day period--pay all first-month volume under Fast Start Bonus
Ongoing Fast Start BonusRank
Level Associate Jr. Mgr Mgr Sr. Mgr Dir+250 GV 500 GV 1000 GV 1000 GV 1000 GV
1 20% 20% 30% 30% 30%
2 -- 3% 3% 4% 5%
3 -- 3% 3% 4% 5%
4 -- 3% 3% 4% 5%
5 -- 3% 3% 4% 5%
6 -- 3% 3% 4% 5%
Note: 1) GV requirement for Associate through Manager is one month only2) Members with GV from 100 to 249 points will receive 5% on Level 1
Fast Start Bonus Example #1
Assoc.
New F.O.
Jr. Mgr
Sr. Mgr
Dir
Bonus
5%
4%
3%
20%
Fast Start Bonus Example #2
Assoc.
New F.O.
Jr. Mgr
Mgr
Sr. Mgr
Level 1
Level 2
Level 3
Level 4
Sr. Manager earns 4% on first-month volume of new team member
joining 4 levels down in the team
Fast Start Bonus
Additional Information
1) Qualified Levels are established by 100 PV for Associates, Jr. Managers and Managers and normal rank requirements for Sr. Managers and higher
2) First-month volume up to 1,000 points is paid to the enroller and upline as outlined
3) First-month volume over 1,000 points is paid as outlined beginning with the new Franchisee
Modify Director Bonus Pools
Modify Director Bonus Pools
Objectives
1) Maintain excitement about the bonus
2) Structure the bonus to reward team building
3) Eliminate confusion about bonus amounts
4) Encourage behavior of growth and sustainability
5) Create bridge to Sapphire rank
New Team Builder Bonus
Modifications
1) Modify Director Bonus Pools into a Team Builder Bonus
2) Link Organizational Volume to specific bonus amounts
3) Incorporate payments into regular commission payment timing
Team Builder Bonus
• Ten bonuses
• Earn each bonus once
• Bonus grows as OV grows
• No time limit
• Total potential of $20,000
TB Level OV Bonus
1 3,000 $ 500 2 5,000 1,000 3 7,500 1,500 4 10,000 2,000 5 15,000 2,000 6 20,000 2,000 7 25,000 2,500 8 30,000 2,500 9 40,000 3,000
10 50,000 3,000 Total $ 20,000
Team Builder BonusQualification
1) Personally sponsor at least 3 Franchisees frontline and help them achieve the rank of Associate
2) Leg Balance – No more than 60% OV in one leg
3) Bank and Release – Two options for bonus to be released: a) Hold OV level for consecutive monthsb) Move up to next Team Builder level
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
TB Level OV Bonus
1 3,000 $ 500 2 5,000 1,000 3 7,500 1,500 4 10,000 2,000 5 15,000 2,000 6 20,000 2,000 7 25,000 2,500 8 30,000 2,500 9 40,000 3,000
10 50,000 3,000 Total $ 20,000
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
TB Level OV Bonus
1 3,000 $ 500 2 5,000 1,000 3 7,500 1,500 4 10,000 2,000 5 15,000 2,000 6 20,000 2,000 7 25,000 2,500 8 30,000 2,500 9 40,000 3,000
10 50,000 3,000 Total $ 20,000
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
TB Level OV Bonus
1 3,000 $ 500 2 5,000 1,000 3 7,500 1,500 4 10,000 2,000 5 15,000 2,000 6 20,000 2,000 7 25,000 2,500 8 30,000 2,500 9 40,000 3,000
10 50,000 3,000 Total $ 20,000 $5,000
Bonus
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
Team Builder Bonus – Transition Example
1) Achieved 12,000 OV in April
2) Eligible to earn Team Builder Bonus for the 15,000 OV level
3) Must achieve 15,000 OV and confirm it a second month to receive the $2,000 Team Builder Bonus
4) Could also skip up to 20,000 OV
Introduce Enroll and Place
What is Enroll and Place?
Enroll and Place Option allows Franchisees to enroll new people and place them somewhere on their team other than frontline
Enroll and Place
Objectives
1) Allow leaders to place new Franchisees in natural teams
2) Provide both Enroller and Sponsor as mentors to new Franchisee
3) Encourage “pay it forward” principle
Enroll and Place
Program
1) Placement must be done at time of enrollment
2) Placement must be within three levels
3) Enroller retains fast start and future downline fast start
4) Sponsor receives volume for qualification and residual commissions
Enroll and Place Example
New F.O.
Jr. Mgr
Mgr
DirEnroller
Sponsor
Placement
• 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
Introduce Weekly Pay Program
Weekly Pay Program
Objectives
1) Pay Fast Start Bonus more quickly
2) Build belief in Franchise Model
3) Allow Franchisees to “turn” investment more quickly
Weekly Pay ProgramProgram
1) Existing Franchisees must register for Unicity Awards Visa Card
2) All new Franchisees will be paid commissions via card
3) Weekly Franchise building period runs from Sunday midnight to Sunday midnight
4) Weekly payments will be credited to the card on Thursdays
5) Initially, Fast Start Bonus Level 1 will be paid
Weekly Pay Program1) Online Citibank account
2) Instant access to funds
3) No more waiting for checks to arrive or clear
4) Check balances or transfer funds online
5) Use like Visa debit card
6) Low ATM cash withdrawal fees
7) Use card to make Unicity purchases
Weekly Pay Card
Register for Card in Franchise Office Starting May 5
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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