Crunchi Advocate Resource Center logo
Crunchi Advocate Resource Center logo
All articles

10) Cancellations, Disputes, DamagesUpdated 3 months ago

10) Cancellations, Disputes, Damages

10.1 CANCELLATION: An Advocate may cancel at any time, regardless of the reason. The Advocate may cancel the Agreement within thirty (30) business days from the date of registration without penalty or obligation; or pursuant to state-specific obligations.

a. Cancellation must be sent in writing to Crunchi, LLC PO Box C, Stuart, FL 34995, Stuart, FL 34997, or via email at [email protected].

b. Any payments made to Crunchi will be returned to Advocate within fifteen (15) days of written cancellation. Advocate must make available any product collection purchased and delivered under this Agreement and must be returned by Advocate within fifteen (15) days of written cancellation. The collection must contain all products purchased within the collection. Advocate will ship the product collection to the corporate office at Advocate’s expense. If Advocate does not ship the product collection within fifteen (15) days of cancellation then Advocate may retain, for personal use only, or dispose of the product collection. If the Advocate does not return the product collection within fifteen (15) days, the Advocate will remain liable for all costs, but for specific state law requirements.

10.2 VOLUNTARY CANCELLATION: Advocates have the right to cancel their Agreement at any time, regardless of reason. Cancellation may be submitted to [email protected] or will arise by failure to renew. The written notice must include the Advocate’s full name, and address. In addition to written termination, Advocates who have consented to Electronic Contracting will cancel their Advocate Agreement should they withdraw their consent to contract electronically.

10.3 INVOLUNTARY CANCELLATION OR FAILURE TO MEET REQUIREMENTS: If an Advocate fails to satisfy their PV requirements to remain an Advocate, his or her status will remain the status of an Advocate until they fail to renew. Commissions are only paid to those Advocates who qualify. An Advocate’s violation of any of the terms of the Agreement, including any amendments that may be made by Crunchi in its sole discretion, may result in any of the sanctions listed in Section 10.5, including the involuntary cancellation of his or her Advocate Agreement. Cancellation shall be effective on the date on which written notice is mailed, emailed, faxed, or delivered to an express courier, to the Advocate’s last known address, email address, or fax number, or to his/her attorney, or when the Advocate receives actual notice of cancellation, whichever occurs first. Crunchi reserves the right to cancel all Advocate Agreements upon thirty (30) days’ written notice in the event that it elects to (1) cease business operations; (2) dissolve as a corporate entity; or (3) terminate distribution of its products via direct selling.

10.4 EFFECT OF CANCELLATION: An Advocate whose business is canceled for any reason will lose all Advocate rights, benefits, and privileges.

a. The Advocate must discontinue using the Crunchi name, and all other Crunchi confidential information, intellectual property, and all derivatives of such intellectual property, in general, online, and in any postings on social media, websites, or other promotional materials. This includes the right to represent themselves as a Crunchi Advocate, the right to sell Crunchi products, the right to receive commissions, bonuses, or other income resulting from the Advocate’s own sales and the sales and other activities of the Advocate’s former downline sales organization. Advocates will receive any bonuses and commissions due to them through the date of cancellation.

b. Replicated website fees, Sales Tools, email, Advocate tools or services, and any annual fees are not refundable except as may be required under applicable state law.

10.5 DISCIPLINARY SANCTIONS: Violation of the Agreement, these Policies and Procedures, violation of any common law duty, including but not limited to any applicable duty of loyalty, any illegal, fraudulent, deceptive or unethical business conduct, or any act or omission by an Advocate that, in the sole discretion of the Company may damage its reputation or goodwill (such damaging act or omission need not be related to the Advocate’s Crunchi business), may result, at Crunchi’s discretion, in one or more of the following corrective measures:

  • Issuance of a written warning or admonition;
  • Requiring the Advocate to take immediate corrective measures;
  • Imposition of a fine, which may be withheld from bonus and commission checks;
  • Loss of rights to one or more bonus and commission checks;
  • Crunchi may withhold from an Advocate all or part of the Advocate’s bonuses and commissions during the period that Crunchi is investigating any conduct allegedly violative of the Agreement. If an Advocate’s business is canceled for disciplinary reasons, the Advocate will not be entitled to recover any commissions withheld during the investigation period;
  • Suspension of the individual’s Advocate Agreement for one or more pay periods;
  • Permanent or temporary loss of, or reduction in, the current and/or lifetime rank of an Advocate (which may subsequently be re-earned by the Advocate);
  • Transfer or removal of some or all of an Advocate’s downline Advocates from the offending Advocate’s downline organization. Involuntary termination of the offender’s Advocate Agreement;
  • Suspension and/or termination of the offending Advocate’s Crunchi website or website access;
  • Any other measure expressly allowed within any provision of the Agreement or which Crunchi deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Advocate’s policy violation or contractual breach;
  • In situations deemed appropriate by Crunchi, the Company may institute legal proceedings for monetary and/or equitable relief.
  • At the discretion of Crunchi, recognition privileges may be suspended

10.6 COMPLAINTS: If an Advocate has a complaint, with another consultant, or with Crunchi regarding any practice or conduct, then the issue should be raised to the Advocate’s upline. If the matter cannot be resolved, then it should be reported in writing to Crunchi Corporate offices.

10.7 ACTIONS OF BUSINESS ENTITIES AND AFFILIATED PARTIES AS ADVOCATES: The term “Business Entity” shall mean any corporation, partnership, limited liability company, trust, or other entity that owns or operates a Crunchi business. The term “Affiliated Party” shall mean any individual, partnership, trust, limited liability company, or other entity that has an ownership interest in, or management responsibility for, a Business Entity. A Business Entity and each Affiliated Party must comply with the Agreement. If a Business Entity and/or any Affiliated Party violates the Agreement, Crunchi may take disciplinary action against the Business Entity and/or against any or all of the Affiliated Parties. In addition, if a household family member of an Advocate engages in conduct that would be a violation of the Agreement, the conduct of the household family member shall be imputed to the Advocate.

10.8 LIQUIDATED DAMAGES: In any case that arises from or relates to the wrongful termination of an Advocate’s Agreement and/or independent business, the parties agree that damages will be extremely difficult to ascertain. Therefore, the parties stipulate that if the involuntary termination of an Advocate’s Agreement and/or loss of their independent business is proven and held to be pursuant to a breach of contract or otherwise wrongful under any theory of law, the parties sole remedy shall be liquidated damages calculated as follows: For Advocates at the “Paid As” title of Crunchi, liquidated damages shall not exceed the amount of Advocate’s gross compensation earned pursuant to the Crunchi Advocate Plan in the twelve (12) calendar months immediately preceding the termination. The Parties agree that the foregoing liquidated damage schedule is fair and reasonable. An Advocate’s “Paid As” title is the title at which they actually qualified to earn compensation under the Advocate Compensation Plan during a pay period. For purposes of the Agreement, the relevant pay period to determine an Advocate’s “Paid As” title is the pay period during which the Advocate’s business is placed on suspension or terminated, whichever occurs first. The “Paid As” Title differs from the “Recognition Title,” which is the highest title an Advocate has ever achieved under the Advocate Compensation Plan.

10.9 DISPUTE RESOLUTION: As referenced in Section 18 of the Advocate Terms and Conditions the following process is outlined for dispute resolution. For claims seeking $5,000.00 or more that arise from or relate to the Agreement, prior to filing arbitration as set forth below, the Parties shall meet in good faith and attempt to resolve such dispute through confidential nonbinding mediation. One individual who is mutually acceptable to the Parties shall be appointed as mediator. If the Parties cannot agree on a mediator, the complaining Party shall request a mediator be appointed by the American Arbitration Association (“AAA”). The mediation shall occur within sixty (60) days from the date on which the mediator is appointed. The mediator’s fees and costs, as well as the costs of holding and conducting the mediation, shall be divided equally between the Parties. Each Party shall pay its portion of the anticipated shared fees and costs at least ten (10) days in advance of the mediation. Each Party shall pay its own attorney’s fees, costs, and individual expenses associated with conducting and attending the mediation. Mediation shall be held in Martin County, Florida, and shall last no more than two (2) business days. Except as otherwise provided in the Agreement, any controversy or claim arising out of or relating to the Agreement, or the breach thereof shall be settled through confidential arbitration. The Parties waive rights to trial by jury or to any court. This arbitration provision applies to claims that were not successfully resolved through the foregoing mediation process as well as claims for less than $5,000.00 not subject to the mediation requirement. The arbitration shall be filed with, and administered by, the American Arbitration Association in accordance with the AAA’s Commercial Arbitration Rules and Mediation Procedures, which are available on the AAA’s website at www.adr.org. Copies of the AAA’s Commercial Arbitration Rules and Mediation Procedures will also be emailed to Advocate upon request to Crunchi Corporate office. Notwithstanding the rules of the AAA, unless otherwise stipulated by the Parties, the following shall apply to all Arbitration actions: The Florida Rules of Evidence shall apply in all cases; The Parties shall be entitled to all discovery rights permitted by the Florida Rules of Civil Procedure; The Parties shall be entitled to bring motions under Rules 12 and/or 56 of the Florida Rules of Civil Procedure; The Federal Arbitration Act shall govern all matters relating to arbitration. The laws of the State of Florida without regard to principles of conflicts of laws, shall govern all other matters relating to or arising from the Agreement; The arbitration hearing shall commence no later than 365 days from the date on which the arbitrator is appointed, and shall last no more than five (5) business days; The Parties shall be allotted equal time to present their respective cases; The arbitration shall be brought on an individual basis and not as part of a class or consolidated action; All arbitration proceedings shall be held in Martin County, Florida; There shall be one (1) arbitrator selected from the panel that the AAA provides; Each Party to the arbitration shall be responsible for its own costs and expenses of arbitration, including legal and filing fees; The decision of the arbitrator shall be final and binding on the Parties and may, if necessary, be reduced to a judgment in any court to which the Parties have consented to jurisdiction as set forth in the Agreement. This agreement to arbitrate shall survive the cancellation or termination of the Agreement. The Parties and the arbitrator shall maintain the confidentiality of the arbitration proceedings and shall not disclose to third parties:

  • The substance of, or basis for, the controversy, dispute, or claim;
  • The substance or content of any settlement offer or settlement discussions or offers associated with the dispute;
  • The pleadings, or the content of any pleadings, or exhibits thereto, filed in any arbitration proceeding;
  • The content of any testimony or other evidence presented at an arbitration hearing
  • or obtained through discovery in arbitration;
  • The terms or amount of any arbitration award;
  • The rulings of the arbitrator on the procedural and/or substantive issues involved in the case. Notwithstanding the foregoing, nothing in the Agreement shall prevent either Party from applying to and obtaining from any court to which the Parties have consented to jurisdiction as set forth in the Agreement a temporary restraining order, preliminary or permanent injunction, or other equitable relief to safeguard and protect its intellectual property rights, trade secrets, and/or confidential information, including but not limited to enforcement of its rights under the provision of the Agreement.
Was this article helpful?
Yes
No
Powered by