8) Advocate Titles and Upline/Downline RelationshipsUpdated 3 months ago

8) Advocate Titles and Upline/Downline Relationships

8.1 TITLES: Crunchi has two (2) types of titles. Recognition Title is the title, or rank designation, given to an Advocate when they fulfill the requirements for a title in Crunchi’s compensation plan during any given month. The Advocate’s Paid As Title can be equal to or lower than the Advocate’s Recognition Title. If the Advocate does not fulfill the requirements of their Recognition Title within a month, their com- pensation will be based on the title for which they actually satisfy the requirements as specified in the Advocate Plan.

8.2 TITLE RETENTION: An Advocate’s highest Paid As Title, will be their Recognition Title for a six (6) month period. If an Advocate fails to be Paid As his or her Recognition Title during that six (6) month period, they may maintain their Recognition title during the six (6) month period, but once the original Recognition Title six (6) month period is over, his or her Recognition Title will be updated to the highest Paid As Title that he or she qualified for within the last six (6) months (Current + prior 6 Months).

a. For example: If you advance in title in November, you will hold that Recognition Title for six (6) months, December - May. If you do not achieve that paid as title or higher within those six (6) months your Recognition Title will update for the month of June to your highest Paid As Title from the previous (6) months.

b. For example: Advocate #101 achieved the Recognition Title of Activist for the first time in November. They have until May to be Paid As an Activist or higher at least once before their Recognition Title is demoted in June. In April, Advocate #101 met the requirements to be a Paid As Ambassador. They now have until October to again achieve Paid As Ambassador or higher to maintain their Recognition title in November.

8.3 CHANGE OF UPLINE: An Advocate may change their direct upline upon written consent of Crunchi Corporate within the 72-hour period after enrollment. This 72-hour period will begin at the time Crunchi Corporate receives the new Advocate Enrollment form. In the instance that a new Advocate wishes to transfer to a different upline, the transferring Advocate must do the following: 

a. Contact Crunchi Corporate within 72-hours after enrollment stating the reason for transfer and the Advocate to whose upline the new Advocate wants to transfer.

b. Contact all upline and downline Advocates who would be financially affected by the transfer to notify them of the request to transfer. If the new Advocate is unsure who to contact, Crunchi can assist with providing names and email addresses.

c. Provide evidence of contact of all affected Advocates to Crunchi.

Once the 72 hours after enrollment period has passed, Crunchi prohibits changes in sponsorship. Accordingly, the transfer of a Crunchi business from one sponsor to another is not permitted. In order to protect all Sponsors, no Advocate may interfere with the relationship between another Advocate and his or her Sponsor in any way. An Advocate may not offer, entice, encourage, solicit, recruit, or otherwise influence or attempt to persuade another Advocate to change his or her Sponsor or line of sponsorship, either directly or indirectly.

8.4 TRANSFER PROCESS: Advocates requesting transfer within the 72-hour period after enrollment understand that all approved transfers will take place on the first business day following the expiration of the 72 hour period. All sales, commissions, credits, bonuses, etc. that accrue on or after the date of transfer will follow and accrue within the new upline for the remainder of the month.

8.5 WAIT PERIOD: An Advocate may legitimately change organizations by voluntarily canceling his or her Crunchi business and remaining inactive (i.e., no purchases of Crunchi products for resale, no sales of Crunchi products, no sponsoring, no attendance at any Crunchi functions, participation in any other form of Advocate activity, or operation of any other Crunchi business, no income from the Crunchi business) for six (6) full calendar months. If the Advocate operated his or her Crunchi business as a sole proprietor (an individual or natural person), the Advocate may not attempt to circumvent this policy by using a Business Entity (as defined in Section 10.7) to enroll prior to the expiration of the six month waiting period contemplated herein. Similarly, if the Advocate operated his or her Crunchi business as a Business Entity, the Advocate may not enroll as a sole proprietor or use a different Business Entity prior to the expiration of the six month waiting period. Following the six-month period of inactivity, the former Advocate may reapply under a new sponsor, however, the former Advocate’s downline will remain in their original line of sponsorship. Crunchi may consider waiving the six-month waiting period under exceptional circumstances. Such requests for waiver must be submitted to Crunchi in writing. Any change in sponsorship in accordance with this Policy at any rank is limited to one time in the Advocate’s life. Crunchi will not accept an Advocate Agreement for an Advocate wishing to change sponsors beyond the first sponsor change made in accordance with this Policy.

8.6 TRANSFER AND WAIVER OF CLAIMS: In cases wherein an Advocate improperly transfers, Crunchi reserves the sole and exclusive right to determine the final disposition of the Advocate’s downline and Clients. ADVOCATES WAIVE ANY AND ALL CLAIMS AGAINST CRUNCHI, ITS OFFICERS, DIRECTORS, OWNERS, EMPLOYEES, AND AGENTS THAT RELATE TO OR ARISE FROM CRUNCHI’S DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT DEVELOPS BELOW AN ADVOCATE WHO HAS IMPROPERLY TRANSFERRED.

8.7 LINES DIRECT TO CRUNCHI: Crunchi may move any Advocate who is directly beneath Crunchi Corporate, along with said Advocate’s entire sales organization, to another Advocate at its sole discretion.

8.8 CLIENTS LINKED TO ADVOCATES: When a new Client places an order with an Advocate, that Client becomes linked with that particular Advocate on Crunchi’s website. It is always the Client’s choice of whom they want to place an order with, regardless of any prior Client relationship(s). Clients have the right to change Advocates, or place orders, under a different Advocate of their choosing at any time. If a Client would like to change the Advocate on an order that has already been processed the Client (not the Advocate) must request this change in writing directly from Crunchi.

8.9 VOLUME FROM CLIENTS’ ORDERS WHO BECOME ADVOCATES: When a Client becomes an Advocate, any volume from orders the Client placed prior to enrollment will not count towards their Personal Volume. The volumes associated with their orders prior to enrollment will remain unchanged.

8.10 ENROLLING ADVOCATE UPLINE: It is the new enrolling Advocate’s choice of who they want to enroll under, regardless of the New Advocate’s prior Client relationship(s). When a Client enrolls to become an Advocate, they will be placed under the Advocate they chose at enrollment (that Advocate may be Corporate). Any Advocate enrolling Direct-to-Corporate will be contacted by Corporate to determine where they will be placed. Crunchi reserves the right to place New Advocates at its sole discretion.

8.11 LEADERSHIP RESPONSIBILITIES: If Crunchi determines a leader is failing to train, recognize, inform, or help its downline, or fails to comply with the Agreement, Crunchi may at its sole discretion opt to remove a leader’s downline, reduce TV, or cancel that Advocate’s Agreement.

8.12 MAINTAINING ACTIVE STATUS:

8.12.1 Definition of Active Status
An Advocate is considered to be in Active Status when they are current with their Annual Renewal Fee and meet the Active Advocate Policy Volume (AAPV) requirement by achieving a minimum of 200 in Personal Volume (PV) each calendar quarter. Maintaining an Active Status provides continued access to a replicated Crunchi website, access to Crunchi’s Back Office, retention of Clients, placement within the genealogy tree, and a 20% discount on product purchases at the time of order.

8.12.2 Quarterly Periods
For purposes of determining Active Status, the calendar year is divided into the following quarters: Quarter 1 (Q1): January through March; Quarter 2 (Q2): April through June; Quarter 3 (Q3): July through September; and Quarter 4 (Q4): October through December. Advocates must achieve a minimum of 200 PV within each quarter to maintain Active Status.

8.12.3 New Advocate Grace Period
Newly enrolled Advocates are granted a grace period during their initial quarter of enrollment. The 200 PV requirement begins the next full quarter following the quarter of enrollment. For example, an Advocate who enrolls in February (Q1) will begin their first qualifying quarter in April through June (Q2).

8.12.4 Notification of Inactive Status
Advocates who have not met the 200 PV minimum for the current quarter will receive an automated email notification during the final month of that quarter. This notification serves as a reminder and warning of potential deactivation if the PV requirement is not met by quarter-end.

8.12.5 Deactivation
Advocates who fail to meet the 200 PV requirement for the current quarter will be deactivated. Upon deactivation, the individual will lose access to their replicated website and Crunchi Back Office, be removed from the genealogy tree, forfeit any linked Clients, and lose eligibility for Advocate discounts.

8.12.6 Re-Enrollment After Deactivation
A deactivated Advocate may re-enroll as an

Advocate at any time. Upon re-enrollment, the Advocate will be subject to the then-current Advocate Agreement and all applicable policies.

8.13 COMPLETE DEDICATION TO CRUNCHI: When an Advocate achieves a Paid As Title of Innovator and above, this becomes a turning point in their business. In order to be paid past Visionary, the Advocate must choose Crunchi as the only MLM they represent and promote. While they are permitted to keep their other MLM affiliation(s) for personal use, they may no longer lead, recruit for, or promote another party plan, direct selling, or multilevel marketing products and opportunities. Failure to do so will result in their Recognition/ Paid As Title being capped at the Visionary level.