The Rules and Regulations ( referred to as the “Rules”) herein seek to spell out the rights, duties and obligations of registered distributors ( referred to as the “Distributor ”) of K-Link Phil. Inc. ( referred to as the “Company”) in the course of carrying out their business with the Company. The stipulated rules are also intended to promote understanding and harmony, not only between the Company and the Distributors but also among the Distributors themselves.
All Distributors are expected to abide by the Rules at all times and are therefore advised to familiarize themselves with these rules. Furthermore, the Distributors must also be informed that the Company has all the rights to terminate the Distributor who violates the Rules or any term thereof. The Company also reserves the right to change or amend the Rules, wholly or partly, as and when the Company deems proper and necessary.
Application for Distributorship
Any person who is at least 18 years of age, any duly registered partnership or firm, and any duly incorporated private limited company may apply to be a Distributor of the Company.
All applicants for Distributor must be sponsored by an existing distributor of the Company.
An applicant for Distributor is required to complete and sign the Official Distributor Application Form and forward the same to K-Link Philippines Head Office with the prescribed registration fee.
An applicant for Distributor is encouraged to personally fill-up the Official Distributor Application Form, should this be not possible, a third party who will register in behalf of the applicant must submit a Temporary Application Form completed and/or signed by the applicant.
A duly filled up Application Form signifies the applicant's acceptance of all the terms of the Rules herein. The Company nonetheless has the sole prerogative whether to accept or reject the application.
A newly registered Distributor is required to attend the Business Opportunity Meeting/New Distributor Seminar which is regularly held at the Head Office and/or Stockist Centers.
Upon registration, a Distributor Card will be issued to the Distributor and he will be provided with a Starter Kit with the following contents:
K-Link's Product Range
K-Link's Marketing Plan
Company Rules and Regulations
Product booklet, flyers and CDs
K-Link Car Sticker
Product Price List
Temporary Application Form
Distributor's Moral Code
A distributor must acknowledge that as a distributor of the Company he is expected to abide by the rules and etiquette that govern his business with the Company and must not violate them . Furthermore, he must sincerely commit himself to the following Distributors' Moral Code:
To be truthful and honest in all his endeavors particularly in his dealings with his customer, his co-distributors and the Company.
To strictly observe all the rules and regulations enforced by the Company from time to time and not to violate them.
To preach and practice the Company's business culture and assist to realize the Company's goal of going global in line with its concept of “YOUR GLOBAL LINK.”
To refrain from directly or indirectly misleading customers or verbally or non-verbally misrepresenting the company and vending any of the Company products.
To properly behave at all times and not to commit any act which may put his dignity or the Company's reputation to prejudice or ridicule.
Distributor's Business Account
K-Link's membership is lifetime, yearly renewal of membership is not necessary.
A registered Distributor shall be assigned with his own Distributor Code which he will use in making his transactions with K-Link.
The Company strictly prohibits double distributorship or double registration. A Distributor should maintain only one (1) Business Account with the Company. The Company may terminate or cancel any other account found to be operated by the Distributor aside from his first registration.
Husband and Wife Distributors
The spouse of a Distributor is eligible to be a Distributor of the Company provided that he/she is sponsored by the husband/wife himself/herself and is not a member of any other networking company.
In operating their distributorship, “husband and wife” Distributors may either (i) combine their operations and operate as a Single Distributor ; or (ii) maintain a separate distributorship and have his/her own network of down lines.
In cases, wherein the “husband and wife” who previously holds separate distributorship and decided to operate as a single Distributor and in doing so the wife/husband have abandoned his/her downlines, such abandoned downlines must maintain their original operation.
In the event of divorced “husband and wife”, the Distributors themselves must settle their distributorship property and benefits in accordance with their divorce agreement under the Court supervision. The Company reserves the right to intervene in any way it deems necessary in order to protect the interest of other Distributors who may be affected by the divorce.
Affiliation with other MLM Companies
All registered Distributors are prohibited from joining or signing-up as a member of other MLM companies or business of similar nature or in conflict with the practice being carried out by the Company.
An existing member of other MLM companies whether a direct competitor or non-competitors may be allowed to join the Company as a Distributor provided that he will no longer engage in the business performed by his/her previous MLM company. Furthermore, the Company reserves the right to apply the appropriate sanction if the said Distributor committed any infraction of the company rules and regulations or an act which is in conflict or detrimental to the Company's interest.
Promoting and Selling the Product as Distributor
Every distributor is expected to be actively involved in the promotion and sale of the Company's products.
A distributor must be honest in promoting the Company's products and Marketing Plan. He is also expected to develop his own network of distributors in line with the requirements of the Company's Marketing Plan.
In making a presentation of the Company's product, must explain to the customer all the instructions and cautions relating to product usage as specified in the product labels or literature.
A distributor must not misquote, misinterpret or misrepresent the quality or performance of the Company's products. A distributor is only allowed to make claims that are only indicated in the published Company's official product literature. The Company reserves the right to claim indemnity against any distributor in respect of any costs or expenses arising from any misquotation, misinterpretation, misrepresentation or undue claim as the case may be.
A distributor must not introduce any of the Company's products as a medicine that could cure a disease.
No distributor is allowed to sell products whose shelf life has already expired.
Other Duties & Responsibilities of a Distributor
A Distributor is not an employee, agent or representative of the Company. Hence, a Distributor must represent himself as an independent Distributor and must not claim to be an employee, agent or representative of K-Link Phil., Inc.
Enticing or encouraging of a down line from another group, or the spouse of such down line to join one's own group is an offense and is strictly prohibited. All distributors must refrain from committing such.
A distributor must keep his record of his own annual income and is responsible to submit the same to the Bureau of Internal Revenue for taxing purposes.
Stockpiling of the Company's products is prohibited and no distributor must engage in such activity. Likewise, no distributor shall operate a ‘pyramid-type' business utilizing the Company's products.
A distributor is not authorized to enter into any agreement or make an offer of settlement involving the Company to settle any complaint regarding the use or misuse of the Company's products.
A distributor must issue and deliver a customer's receipt whenever a sale transaction of the Company's product is successfully concluded.
A Distributor may sponsor people from other countries where K-Link branches and master stockists exist or in countries where MLM business is allowed and recognized by their law.
All information entered in the Official Distributor Application Form signed by the Distributor including the Sponsor's Information is considered final and official.
A Distributor is not allowed to change his sponsor, the Company will not entertain or accept any request for change of sponsor.
In case, a Distributor is sponsored by more than one sponsor and a dispute arises, the sponsor who first submits the Official Application Form shall be regarded as the legitimate and official sponsor.
With reference to item number four (4), wherein the submission of the two Official Application Forms were made on the same day, and it was not determined as to whose application was submitted first, the Sponsor whose application was registered first as per Members Data System shall be regarded as the legitimate sponsor.
Sale/Transfer of Distributorship
The Company does not encourage any sale or transfer of distributorship. A Distributor who wish to undertake such action must strictly observe the following guidelines:
Only a Distributor who have reached the Diamond Manager Rank and above and has maintained a good record with the Company may apply for a sale or transfer of his distributorship.
An application to sell or transfer a distributorship must be made in writing and must be submitted to the Company, further, the Company reserves the right to approve or reject such application.
A sale or transfer of distributorship is governed by the following order of preference:
1 st Priority : The direct Sponsor of the Distributor
2 nd Priority : The uplines of the Distributor with those nearest to the Distributor gets the higher priority
3 rd Priority : Any downlink of the Distributor who has at least reached the Manager Rank
4 th Priority : Any distributor of the Company who have reached the Manager Rank and above.
A duly approved distributorship sale or transfer must undergo proper sale procedure and must be supported by a purchase agreement signed by both parties concerned. A copy of the notarized agreement must be provided to the Company.
A Distributor who has sold or transferred his distributorship may re-apply as a new Distributor after a lapse of one (1) year from the date of sale of his previous distributorship.
Termination/Cancellation/Death of Distributor
A Distributor is a qualified Distributor as long as he maintains a Personal Sale of 1,300 (Peso) BV within every six (6) months. However, the Company reserves the right to terminate any distributorship if a Distributor is found to violate or infringe any of the company rules and regulations or any term thereof.
A distributorship will be automatically cancelled if the Distributor fails to purchase 1,300 (Peso) BV worth of products within twelve (12) consecutive months. A Distributor affected by such rule, may however, re-apply as a Distributor again if he intends to continue with the business.
A Distributor who wish to self-terminate or resign his Distributorship must submit his letter of intention to the Company. All downlines of the resigned distributor will be automatically transferred to his Sponsor.
A Distributor who self-terminated his distributorship must wait for a lapse of six (6) months before he can re-apply as a Distributor. The Company reserves the right to accept and reject this application.
Upon any termination of distributorship, the Distributor automatically losses all his rights to any privileges, benefits or bonuses that he is previously entitled.
A Distributor who has successfully re-applied as a member again, shall start anew and must develop and operate his new network of down lines and must not directly or indirectly encourage or entice his former down lines to join his new network.
A Distributor who has become incapacitated and desires to continue with the business may assign his privileges to his beneficiary while his account is still active by submitting an authorization letter to the Company. On the other hand, the benefits, bonuses and privileges of a deceased Distributor will not lapse and instead may be passed on to his legal heir or beneficiary, the latter must inform the Company by submitting a letter with the attached Death Certificate of the Distributor.