1. INTRODUCTION
The following rules of conduct and Independent Business Owner (IBO) policies have been established for both your protection and protection of Hafro. They represent the code of ethics by which all IBOs must operate. We encourage you to read and understand them, so you are fully aware not only of your obligations but also of your rights as an IBO. We want to work with you to uphold the highest possible ethical standards. We are committed to maintaining the integrity of Hafro, its sales and marketing plan, and its distribution network of independent IBOs.
TERMINOLOGY
Throughout this document, the words “he”, “she”, “they”, “himself ”, “herself ”, “theirself ” and “themselves” are used interchangeably, with one gender denoting the other.
2. NOT A PYRAMID SCHEME
Hafro is not a pyramid or chain distribution scheme. A pyramid is a scheme in which an individual pays for the right to recruit additional persons into the scheme who, in turn, receive the same right to receive profits from recruiting others. Three common elements of a pyramid scheme have been identified as: (1) a large, required initial investment or purchase of inventory; (2) direct payment for recruiting additional personsinto the scheme; and (3) little or no emphasis on selling products to consumers.
The Hafro plan contains none of the above described elements. Hafro IBOs earn money by selling products to their customers directly, but not from the introduction of additional persons into the business. It is important when recruiting new members to adequately emphasize retail selling, and advise new members that they are not required to purchase product stocks, the only required purchase being the Hafro Business Activation Kit.
3. BECOMING AN IBO
To become a Hafro IBO, an applicant must register on a Hafro IBO Replicated Website, or on the Hafro Main Web-site or any other platform Hafro may authorize and approve. During the registration process, the applicant will be asked for the name of the sponsor or recruiter. After approval, the applicant must purchase a Hafro Business Activation Kit. The applicant then becomes a trainee IBO. To become an authorized IBO a trainee must complete an online introductory course or any such training authorized and approved by Hafro. Hafro reserves the right at its sole discretion, to reject any application, without giving reasons for the rejection.
By registering to become a Hafro IBO the applicant is agreeing to the terms and conditions as contained in this Agreement.4
4. APPLICATIONS FROM FORMER IBOs
Former Hafro IBOs who want to re-apply to become an IBO again, under the same sponsor as their previous membership, may do so at any time. If a former Hafro IBO wishes to re-apply to become an IBO in Hafro again, under a different sponsor they must wait for at least 6 months after their membership has lapsed. New applications must comply with all requirements for joining as an IBO.
5. EQUAL OPPORTUNITY
The Hafro business opportunity is open to people from all walks of life, regardless of sex, race, nationality, religious beliefs or political affiliations.
6. RESTRICTIONS ON PURCHASE REQUIREMENTS
The only cost required of an applicant to become an IBO is the purchase of a Hafro Business Activation Kit.
An IBO is not obliged to:
6.1. Maintain any minimum stock levels of products or materials
6.2. Purchase any amount of materials, goods and/or services.
6.3. Purchase admission tickets to attend any seminars, meetings or other events.
7. REQUIREMENT TO FULFILL PRIOR TO BEING PERMITTED TO ONBOARD DIRECT RECRUITS
Hafro IBOs are required to generate a minimum revenue from sale of products as stipulated in the business plan, before they are permitted to onboard their direct recruits.
8. IBOs MUST BE INDIVIDUALS
Hafro only accepts applications for membership in the name of individuals. Applications in the names of corporations or partnerships will not be accepted. The earnings of a membership will be reported in the name and tax identification number of the individual IBO.
9. IBO AGE REQUIREMENTS
Applicants must be over 18 years of age and otherwise legally capable of entering into a contractual agreement.
10. LIMITED TO ONE MEMBERSHIP
An individual may operate only one Hafro membership, and may have only a single sponsor.
IBOs may only participate in the development of one membership. They are not permitted to retail, recruit, promote, train, educate or otherwise assist in the development of the Hafro business for any membership other than his own, except to assist his downline organization.
11. DETERMINATION AND PENALTY FOR DUAL MEMBERSHIP
11.1. In the event that an individual completes and signs more than one application for membership, the first accepted by Hafro is considered the valid membership.
11.2. If Hafro determines that an individual has signed an application for membership, or has worked or assisted in the development of another membership as defined in these rules of conduct, while obligated to a prior membership, Hafro has sole and absolute discretion to determine the disposition of both consultancies, as well as any penalties or sanctions it deems necessary and appropriate for the consultancies and the sponsors.
12. ADMINISTRATION FEE
Hafro charges a monthly administration fee. Members remain at IBO rank by virtue of payment of the fee and achievement of stipulated minimum sales performance targets. In the event that an IBO does not pay the fee or meet the sales criteria specified in the business plan, then the member’s rank is changed to that of a Customer, and discount and commission privileges are forfeited.
13. TERRITORIES
13.1. Hafro grants the IBO the right to operate their membership throughout the region of the Republic of South Africa, specifically within the Common Monetary Area of South Africa. All transactions are conducted in South African Rand, no other currency may be used.
13.2. Hafro does not allocate any region within with Republic of South Africa to any IBO, and IBOs may not in any way imply that they represent any geographical area.
14. EXPORT
Business activity of any kind in any country or territory other than the Republic of South Africa, including but not limited to; selling product, attempting to register products or marketing plans, sponsoring IBOs, advertising, conducting meetings or in any way offering Hafro products or opportunities is strictly prohibited by Hafro.
15. SELLING PRACTICES
15.1. Courtesy and Honesty
A Hafro IBO shall always conduct himself /herself in a courteous and considerate manner. All presentations ofHafro products must be complete and truthful, including but not limited to, instructions on the usage directions and precautions.
15.2. ServicestobeperformedbyIBOs.
An IBO may promote and sell Hafro products, this includes:
15.2.1. The marketing and promotion of a
range of hair/skin care products through the Hafro ecommerce platform, and through experiential events using the Hafro process described in the company Policies & Procedures.
15.2.2. Promoting, marketing and facilitating sales of Hafro products only to end users
15.2.3. Will inform customers that Hafro offers a Satisfaction Guarantee Policy with respect to its products, and will assist customers with initiating a return under such policy with respect to any of its product.
15.3. Satisfaction Guarantee
Hafro offers a Customer Satisfaction Guarantee. If your customer is not completely satisfied with their purchase as a result of product defect or damaged packaging, we will replace it without charge, or credit you against another product, or refund in full. The product must be returned with proof of purchase within 10 (ten) days. The satisfaction guarantee does not apply to products that have been misused or damaged. Evidence of damaged goods or products needs to be submitted to Hafro in the form of photo(s) providing proof to support such a claim.
15.4. Should the claim be successful, all commissions related to the sale of the returned product will be adjusted accordingly.
16. INDEPENDENT IBOs
All Hafro IBOs are independent business owners and no IBO shall represent or imply that he has any employment relationship with Hafro or with any of its affiliated companies. IBOs may not use the words “employee” or “company representative” verbally or on any stationery, business cards, or other printed material.
17. FALSE INFORMATION
No IBO shall knowingly submit false or misleading information to Hafro. Violation of this rule could lead to the rejection of your application or termination of your membership.
18. INDEMNIFY HAFRO
Without prejudice to the other rights of Hafro under these rules of conduct and other rules and regulations of the company, IBOs shall indemnify Hafro from and against all actions, claims, demands, prosecutions, fines, penalties and the costs thereof (including Hafro’ actual legal costs) which might be made or brought against Hafro in respect of, or arising directly or indirectly out of, any breach of any laws or regulations applying to the operation of their membership. Hafro shall have no liability to any IBO in respect of any cost, loss, damage or expense suffered by any IBO directly or indirectly as a result of any act, omission, representation or statement of any IBO.
19. COMPLY WITH RULES OF CONDUCT
IBOs must comply with all Hafro rules of conduct and any amendments or additions together with any procedures, recommendations, guidelines or instructions which may be issued from time to time.
20. VIOLATIONS OF RULES OF CONDUCT
In the event of a violation of the Hafro rules of conduct, procedures or directions issued by Hafro, Hafro may in its sole discretion take whatever actions or measures it deems necessary and appropriate, including but not limited to, suspension of buying privileges, suspension of earnings, monetary fines or deletion or termination of the membership
21. RESIGNATION
21.1. An IBO may resign her membership at any time, by submitting a witnessed letter of resignation to Hafro. The resignation becomes effective when received, validated and accepted by Hafro. Hafro will advise in writing when this is complete.
22. LIABILITY FOR UNPAID DEBT
22.1. An IBO who resigns will remain liable for unpaid debts owed to Hafro or for liabilities for violations of the Hafro rules of conduct or other rules and regulations that govern the business practices of IBOs.
23. TRAINING
A sponsor is responsible for properly training their
personally sponsored IBOs. Training must include
product knowledge, marketing plan, rules of conduct, company rules and guidelines for IBOs. They may seek assistance from their upline IBO, but the primary responsibility remains their own. No sponsor may request payment from a personally sponsored IBO for training or training facilities, unless the training is additional to basic training, and they fully explained that the IBO may choose whether or not they want to participate in “additional” training, the sponsor is still obligated to provide the basic training necessary at no cost.
24. INDEPENDENT RELATIONSHIP
A sponsor must maintain and uphold the independent relations between themselves and their IBOs.
25. SUPPORT COMPANY SPONSORED EVENTS
A sponsor shall keep their IBOs informed of company sponsored events and when appropriate encourage their personally sponsored IBOs to attend Hafro sponsored meetings and training and to participate and support all company sponsored events
26. SPONSORSHIP
26.1. The IBO/Sponsor relationship is the foundation of the Hafro sales and marketing plan and as such, the principles and rules of the company protect the rights of the sponsor. Changes of the sponsorship are detrimental to the integrity of the business and are not permitted
26.2. In order to protect the sponsor, no IBO may interfere with the relationship between another IBO and their sponsor in any way. An IBO may not offer, entice, encourage, solicit, or otherwise influence or attempt to persuade another IBO to change his sponsor or line of sponsorship, either directly or indirectly.
27. VIOLATION OF THE CHANGE OF SPONSORSHIP RULE
27.1. In the event of evidence coming to light that an IBO or her spouse, who have re-joined Hafro under a different sponsor, had re- applied to be an IBO prior to the 6 month period lapsed, then Hafro has the sole and absolute discretion to apply penalties to the membership.
27.2. Penalties will be assessed by Hafro in its sole discretion, and will include, but are not limited to, the transfer of all sponsored IBOs in the new membership to the original sponsor’s organization, financial penalties, suspension and termination of the IBO.
28. ASSIGNING OR TRANSFERRING A MEMBERSHIP
28.1. A membership may only be assigned or transferred to an individual who is not currently a Hafro IBO. Assignment or transfer must be approved by Hafro. The person assuming responsibility for the membership will be required to register as an IBO. If this person was formerly a Hafro IBO, then he must meet requirements of a former IBO to re-join.
28.2. The achievement of an IBO are personal to the individual, and as such, if an assignment or transfer should be authorized, the status and benefits achieved by the IBO are not transferred with the membership. The individual assuming responsibility will be required to achieve all qualifications for the status and earning requirements after the assignment or transfer is made.
29. AUTHORITY OF A LEGAL DECISION
Hafro rules and regulations do not supersede the dictates of any court of law as to the disposition of the membership and or the rights, benefits or obligations of parties to the membership.
30. DEATH OF AN IBO
Upon the death of an IBO who has a surviving spouse or heir who is an active participant in the business, the membership will remain with the spouse or heir. Any other disposition of the membership must be approved by Hafro.
31. PROPER PURCHASING OF PRODUCT
31.1. An IBO must purchase all Hafro products directly from Hafro. Product purchased will be recorded, and used to calculate personal and group commission, as well as to award rank privileges.
31.2. An IBO is prohibited from buying products directly from any other IBO.
31.3. Payment for all orders purchased from Hafro must be made by the IBO designated as the purchaser on the order, his spouse or partner or the first upline IBO, unless written approval is given by Hafro for payment to be made by another individual.
31.4. IBOs may not order product in the name of another IBO, nor may they make payment for products ordered in another IBOs name. Ordering products in another IBOs name could be interpreted as an attempt to improperly manipulate the operation of the marketing plan.
32. VOLUME MONTH
32.1. Sales volume is credited to and accumulated by an IBO on a volume monthly basis. The volume month begins on the first day of the month and ends on the last day of the month. Hafro reserves the right to modify the volume month as it deems appropriate.
32.2. Sales volume is credited to the volume month in which full payment is received by Hafro for the order. Under no circumstances can volume be placed for any other month.
33. PRODUCT DISTRIBUTION
Hafro is a retail distribution company. Products purchased from the company are intended to be sold and distributed directly to consumers or used for IBOs and their immediate families own personal consumption. The purchase of products solely as an attempt to qualify for advancement in the marketing plan is not permitted. Any such attempts will result in sanctions, including, but not limited to, demotion in team status, probation, suspension of buying privileges, suspension of earnings, disqualification from bonus participation, deletion or termination of the membership.
34. DEBTS OWED TO HAFRO
If an IBO owes Hafro a debt, Hafro reserves the right to deduct the amount owed from any sum payable to the IBO or to withhold payment of monies owed until such time as all amounts owing by the IBO to Hafro have been paid in full and/or may decide not to recognize any qualification until the amount due to Hafro has been paid.
35. DIRECTIONS FOR USE
IBOs shall explain the directions for use and cautions, if any, specified on product labels when selling the products.
36. PRODUCT SALES TO NON-IBOS FOR RESALE
No IBO may sell Hafro products to persons who are not Hafro IBOs and whose intention it is to resell those products.
37. MODIFICATIONS TO PACKAGING
Hafro products must be delivered to customers in original unopened packaging as supplied by Hafro. An IBO may not modify in any way any labeling, literature, material or packaging of any Hafro product.
38. DISPLAY IN RETAIL OUTLETS AND OTHER ESTABLISHMENTS
38.1. The fundamental business of a Hafro IBO is the selling of Hafro products to consumers. In order to achieve this, IBOs may display their products in locations that Hafro consider appropriate, such as markets, trade events or other professional offices. This specifically excludes the display of products in supermarkets and any other retail store.
38.2. No IBO are allowed to sell sampling stock directly to customers.
39. DISPLAY OR SALE ONLINE
The fundamental business of a Hafro IBO is the selling of Hafro products directly to consumers. IBOs may display/ advertise Hafro products on websites, but may not sell Hafro products from any website, including auction sites, coupon sites, discount sites or similar sites. Hafro products may only be sold from the official Hafro/IBO Websites.
40. ADVERTISEMENT AND PROMOTIONAL MATERIAL
An IBO may only use Company produced advertising and promotional material. An IBO may use Hafro produced literature or promotional material solely for the purpose of conducting their business as a Hafro IBO.
41. INTERVIEWS OR STATEMENTS TO THE MEDIA
An IBO may be approached from time to time by reporters interested in interviewing them about the Hafro products or business. While we appreciate any interest expressed in our products and business opportunity, only the company may grant interviews or authorize usage of the company or product names. Only authorized officials of Hafro are permitted to speak with or write to the press or other media for, or on behalf of, Hafro or any of its subsidiaries. If An IBO should be approached with a request for an interview or statement, advise the reporter to contact Hafro.
42. OFFERING PRODUCTS FOR AUCTION
No IBO may offer any Hafro product for sale by soliciting or receiving bids for such product.
43. OFFERING THE BUSINESS OPPORTUNITY
When offering the business opportunity or presenting the Haflo sales and marketing plan, an IBO must:
43.1. Clearly indicate that the principal activity of an IBO is to promote Hafro products to consumers and may not represent or imply that this is secondary to sponsoring or building the business.
43.2. Not imply or represent that an IBO can benefit solely by the sponsoring of other IBOs.
43.3. Not imply that an IBO is under any obligation to sponsor others to become IBOs.
43.4. Not imply that success may be achieved with little or no effort.
43.5. Not make any statements which are not accurate or truthful.
43.6. Not claim that high earnings can be easily achieved.
44. INCOME CLAIMS
When an IBO promotes or represents the earnings fromtheir own or another membership, they must at all times be truthful in their statements and it is necessary that the claims can be verified.
45. VIDEO/AUDIO TAPES
An IBO may not display or mention the name of any Hafro product, trademark or trade name in any video or audio recording made by, for, on behalf of, or at the direction of an IBO, unless such tape has been approved for use by Hafro.
46. TELEVISION, ONLINE OR RADIO BROADCASTING
It is not permitted for any IBO to broadcast any video or audio recording of any kind that relates to, mentions, displays or promotes in any way, either directly or indirectly, the Hafro name, products, materials, business opportunity or methods of conducting business.
47. TELEPHONE BOOK LISTINGS
A Hafro IBO may list themselves in the yellow pages of the telephone directory under the heading “Hafro Independent Business Owner”. The only information that may follow this is the IBOs name and/or address and telephone number. An IBO may use display ads in the yellow pages as long as the advertisement is within the guidelines for print advertising.
48. LOCAL LAWS
In addition to Hafro’ policies, an IBO must comply with any and all local and national ordinances, laws or other regulations when operating their business, and advertisingor promoting Hafro products or business opportunity. It is the responsibility of the IBO to determine what these maybe and how they apply to his business.
49. NO OBLIGATION TO PURCHASE PRODUCT
No IBO may represent that there is any obligation to purchase products, literature or sales aids except for the once-off purchase of the Hafro Business Kit, nor may they represent that sales discounts, rebates or other benefits may be obtained solely from the wholesale purchase of products rather than the retail sale of products.
50. TRADE NAMES, TRADEMARKS AND LOGOS
It is not permissible to use Hafro’s trademarks, trade names, logos or any facsimile thereof in any way, without prior written consent from Hafro. These belong exclusivelyto Hafro which endeavors to protect the name Hafro, the trademark, the trade names and designs of labels to prevent unauthorized use.
51. BUSINESS STATIONERY
Business stationery produced by an IBO must clearly indicate that their business is independent, and that they are a Hafro IBO. The wording may not imply that the IBO is employed by Hafro.
52. REPRODUCTION OF MATERIAL
No IBO or any other person may reproduce in whole or inpart any printed material, audio cassettes, video and film recordings that have been produced by Hafro unless given written authorization to do so by Hafro.
53. PENALTIES FOR SUPPLYING NON-HAFRO SALES AIDS OR MATERIALS
In the event that Hafro determines that non-Hafro produced sales aids and materials supplied by an IBO,violates any applicable Hafro rules of conduct or other rules and regulations published by the company or impairs the Hafro business or damages its reputation, Hafro reserves the right to take whatever action is necessary to hold the IBO responsible for any damages incurred.
54. ADDITIONS AND AMENDMENTS
Hafro reserves the right to update, alter or add clauses to this agreement at any time by posting the changes to the online version of this agreement. Notification of changes will be placed in the IBO’s back office and the IBO is responsible for checking the online agreement for updates.
55. SITE DOWNTIME
I acknowledge that the website for Hafro may be subject to temporary shutdowns from time to time for maintenance and/or due to causes beyond Hafro or its vendor’s reason-able control, and that Hafro shall have no liability to me by reason of any such shutdowns.
56. BUSINESS AND PRODUCT CLAIMS
56.1. AllIBOclaimsrelatedtotheirHafrobusiness shall be in compliance with the Hafro Policies & Procedures.
56.2. IBO claims shall include, but not be limited to earnings ability and those claims authorized or approved in writing by Hafro. This obligation extends to any statements made by the IBO in response to customer inquiries about their Hafro business or any Hafro products.
