Policies and Procedures of Cool Girl Squad
POLICIES AND PROCEDURES
1.1 Mutual Commitment Statement
The goal of Cool Girl Squad *(Yams and Hot Sauce LLC) doing business as “Cool Girl Squad,” and/or referred to as “We,” “Us,” “Our,” or simply the “Company” is to provide exceptional products and services to consumers. This is only made possible with the support of and passion by its members of the Cool Girl Squad sales organization known as “Independent Brand Designers”. To achieve sustained success as a business, Cool Girl Squad hereby pledges aid and support to all its Independent Brand Designers in return for such mutual commitment by these Independent Brand Designers to the Company in the effort to reach and support all interested consumers.
1.2 Purpose of Policies and Effective Date
- To clearly define therelationship that exists between Us and You, and to explicitly set a standard for acceptable business conduct, we now put forth these Policies and Procedures.
- As an Independent Brand Designer, you are required to comply with:
- All the terms and conditions set forth in the Independent Brand Designers Agreement, which We may amend from time to time in our sole and absolute discretion.
- All federal,state, and/or local laws governing your Cool Girl Squad business; and
- Lastly, these Policies and Procedures.
- An Independent Brand Designer must review the information in these Policies and Procedures carefully. Should you have any questions regarding a policy or rule, we encourage you to seek an answer from your Sponsor (as defined in the Glossary of Terms herein). Should your Sponsor not provide the appropriate clarification, you may contact the Cool Girl Squad Compliance Department.
- These Policies and Procedures shall become effective as of March 1, 2021 (“Effective Date”).
1.3 These Policies and Procedures and the Compensation Plan Incorporated into the
Independent Brand Designer Agreement
- Throughout these Policies, when the term “Agreement” is used, this collectively refers to the
Independent Brand Designer Agreement, these Policies and Procedures, and the Company Compensation Plan.
- It is the responsibility of a Sponsoring Independent Brand Designer to provide the most current version of these
Policies and Procedures and the Company Compensation Plan to each applicant prior to any execution of an Independent Brand Designer Agreement.
1.4 Changes, Amendments, and Modifications
- Because federal, state, and local laws, as well as the business environment, periodically change, we reserve the right to amend the Agreement from time to time. Additionally, the Company may change and amend the prices on all its product at any time in the future. Please note, this provision does NOT apply to the arbitration clause, which can only be modified via mutual consent.
- Any such amendment, change, or modification shall be effective immediately upon notice by one of
the following methods:
- Posting on the official Corporate website.
- Electronic mail (e-mail); or
- In writing through Company newsletters or corporate communication channels.
- Understand that any continued business, ordering, acceptance of a commission or any bonus payout, or
other benefit received by an Independent Brand Designer pursuant to this Agreement constitutes the acceptance of
this Agreement in whole with all amendments.
Cool Girl Squad shall not be responsible for delays or failures in performance of its obligations when such failure is due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, transportation difficulties, riot, war, fire, and/or weather, curtailment of a source of supply, or government decrees or orders.
2.0 BASIC PRINCIPLES
2.1 Becoming an Independent Brand Designer
As a Cool Girl Squad Independent Brand Designer, you will be a part of a team of passionate, driven, like-minded individuals, all working towards the common goal of achieving emotional, personal, and financial success. To become an Independent Brand Designer, you must comply with the following requirements:
- Be of the age of majority (not a minor) in your state of residence.
- Reside or have a valid address in the United States.
- Have a valid taxpayer identification number (i.e.Social Security Number, Federal Tax ID Number, ITIN, etc.).
- Submit a properly completed andsigned (via hard copy or electronic signature) Independent Brand Designer Agreement.
- Not be a Cool Girl Squad employee, or the spouse or relative of a Company employee living in the
same household; and
2.2 Registration and Enrollment of an Independent Brand Designer
- You can submit your Independent Brand Designer Agreement through mail or the Cool Girl Squad website (https://cool-girl-squad.myshopify.com). The application must be received within five (5) business days of your enrollment for you to receive Independent Brand Designer benefits. If the Independent Brand Designer Agreement is not received within five (5) business days, your Independent Brand Designer account will remain on temporary hold until We receive the Agreement.
- Cool GirlSquad reserves the right to require signed paperwork for any account, regardless of origin.
- Signed documents, including, but not limited to Independent Brand Designer Agreements, are legally binding contracts which must not be altered, tampered with, or changed in any manner after execution. False or misleading information, forged signatures, or alterations to any document, including business registration forms, made after a document has been executed may lead to sanctions, up to and including involuntary termination of an Independent Brand Designer’s Cool Girl Squad business.
2.3 Rights Granted
Cool Girl Squad hereby grants to you as an Independent Brand Designer the non-exclusive right, based upon the terms and conditions contained in the Independent Brand Designer Agreement and these Policies and Procedures, to the following:
- The ability to purchase, sell and promote Cool Girl Squad products and services.
- Sponsor new Independent Brand Designers and Customers in the United States, building a sales organization and earning commissions of the personal and downline sales of Cool Girl Squad products.
2.4 Identification Numbers
- Each Independent Brand Designer is required to provide “its” Social Security Number, or Federal Tax Identification Number, and must be located in the United States, to the Company on the Independent Brand Designer Agreement. We reserve the right to withhold commission payments from any Independent Brand Designer who fails to provide such information or who provides false information.
- Upon enrollment, we will provide you a Cool Girl Squad Unique Identification Number. This number will be used to place orders, structure organizations, and track commissions and possible bonuses.
2.5 Business Entities
- A corporation, partnership, LLC, or trust (collectively referred to as a “Business Entity”) may apply to be an Independent Brand Designer. This Cool Girl Squad business and position will remain temporary until the submission of proper Business Entity documents. As examples of proper documents, we expect a Business Entity application to submit some of the following: Certificate of Incorporation, Articles of Organization, Partnership Agreement, or appropriate Trust documents. We must receive these documents within five (5) business days from the execution date of the Independent Brand Designer Agreement.
- An Independent Brand Designer may change his or her status under the same Sponsor from an individual to a Business Entity so long as “it” complies with Section 2.5(A).
2.6 Independent Business Relationship; Indemnification for Actions
- As an Independent Brand Designer, you are an independent contractor, and not a purchaser of a franchise or business opportunity. As a result, each Independent Brand Designer’s success depends entirely upon “its” own independent efforts.
- The Agreement between you and Us does not create an employer/employee relationship, agency, partnership, or joint venture.
- An Independent Brand Designer shall not be treated as an employee of Cool Girl Squad for any purposes, including, without limitation, for federal or state tax purposes. You are responsible for paying local, state, and federal taxes due from all compensation earned as an Independent Brand Designer. Any other compensation received by Independent Brand Designers from the Company will be governed by applicable U.S. tax laws. You as an Independent Brand Designer have no express or implied authority to bind Cool Girl Squad to any obligation or to make any commitments by or on behalf of the Company. Each Independent Brand Designer, whether acting as management of a Business Entity or represented as an individual, shall establish goals, hours, and methods of operation and sale, so long as in compliance with the terms of the Independent Brand Designer Agreement, these Policies and Procedures and applicable state and federal laws.
- You are fully responsible for all your verbal and written communications made regarding Cool Girl Squad products, services, and the Compensation Plan that are not expressly contained within official Company materials. Independent Brand Designers shall indemnify and hold harmless Cool Girl Squad, its directors, officers, employees, product suppliers and agents from any and against all liability including judgments, civil penalties, refunds, attorney fees and court costs incurred by Cool Girl Squad as a result of an Independent Brand Designer’s unauthorized representations or actions. This provision shall survive the termination of the Independent Brand Designer Agreement.
2.7 Errors or Questions
If an Independent Brand Designer has questions about, or believes any errors have been made regarding commissions, bonuses, business reports, orders, or charges, the Company requires any inquiries by submitting a ticket through your Cool Girl Squad Back Office or via email email@example.com within thirty (30) days of the date of the error or incident in question. Any such errors, omissions or problems not reported within this thirty-day timeframe days is expressly waived by Independent Brand Designer.
3.0 RESPONSIBILITIES OF A COOL GIRL SQUAD INDEPENDENT BRAND DESIGNER
3.1 Correct Addresses
- It is the responsibility of any Customer/Independent Brand Designer to ensure the Company has the correct shipping address before the shipment of any orders.
- For any notice of address change sent to the Company, a Customer/ Independent Brand Designer will need to allow up to thirty (30) days for processing.
3.2 Training and Leadership
- Any Independent Brand Designer who sponsors another Independent Brand Designer into Cool Girl Squad must perform an authentic assistance and training function to ensure those made up of their downline organizations operate their business in accordance with these Policies and Procedures. Sponsoring Independent Brand Designers should have ongoing contact and communication with those in their downline organizations. Examples of communication may include, but are not limited to, newsletters, written correspondence, telephone, contact, team calls, voice-mail, e-mail, personal meetings, accompaniment of downline Independent Brand Designer(s) to Company meetings, training sessions, webinars and any other related functions.
- Cool Girl Squad may take appropriate action against an Independent Brand Designer if it determines, in its sole discretion that, an Independent Brand Designer neglects to train and assist their downline organization. Appropriate action may include, but not limited to, termination of their Independent Brand Designer agreement and account.
- A Sponsoring Independent Brand Designer should monitor the Independent Brand Designer(s) in “its’ downline organizationsto ensure that downline Independent Brand Designer(s) do not make improper product or business claims or engage in any illegal or inappropriate conduct. Upon request, an Independent Brand Designer should be able to provide documented evidence to the Company of his or her ongoing fulfillment of Sponsor responsibilities.
- Upline Independent Brand Designers are encouraged to motivate and train new Independent Brand Designer(s) about Company products and services effective sales techniques, the Company Compensation Plan and compliance with these Policies and Procedures.
- The marketing and sale of products is a required activity in Cool Girl Squad and must be emphasized in all recruiting presentations. Moreover, we prioritize all Independent Brand Designers to sell Cool Girl Squad products and services to Customers first and prospective and current Independent Brand Designers second.
- Use of Sales Aids. Creation of Cool Girl Squad sales tools is limited to approval. These Independent Brand Designers must submit all written sales aids, promotional materials, advertisements, websites, and other literature to the Company for approval prior to use. Unless the Independent Brand Designer receives specific written approval to use the material, the request shall be deemed denied. All Independent Brand Designers shall safeguard and promote the good reputation of Cool Girl Squad and its products. Once approved, Company reserves the right to incorporate the approved training material in its own promotional efforts.
3.3 Constructive Criticism; Ethics
It is Our goal to provide you with a combination of exceptional products and a rewarding Compensation Plan. Accordingly, we value constructive criticism and encourage the submission of written comments addressed to the Company’s Compliance Department so long as such comments come by way of a respectful and in a productive manner. Negative and disparaging comments by Independent Brand Designers made to others about the Company, its products or Compensation Plan, or disruptive behavior at Company meetings or events, serve no purpose other than to dampen the enthusiasm of all those who participate in the Cool Girl Squad business. Independent Brand Designers must not belittle the Company, other Independent Brand Designers, the Company products or services, the Compensation Plan, or Company directors, officers, or employees, product suppliers or agents. Such conduct represents a material breach of these Policies and Procedures and may be subject to sanctions as the Company sees fit.
- Cool Girl Squad endorses the following Code of Ethics:
- Independent Brand Designer's must show fairness, tolerance, and respect to all people associated with Cool Girl Squad sales opportunity regardless of race, gender, social class, or religion.
- Independent Brand Designer's must contribute to and foster an atmosphere of positivity, teamwork, good morale, and community spirit.
- Independent Brand Designer's shall strive to resolve business issues, including situations with upline and downline members through tact, sensitivity, and good will.
- Independent Brand Designer's must be honest, responsible, professional and conduct themselves with integrity.
- Independent Brand Designers shall never disparage the Company, other Independent Brand Designers, Company employees, product suppliers or agents, products, services, sales and marketing campaigns, or the Compensation Plan, or make statements that unreasonably offend, mislead, or coerce others.
Cool Girl Squad may take appropriate action against an Independent Brand Designer if it determines, in its sole discretion, that the Independent Brand Designer’s conduct is detrimental, disruptive, or injurious to the Company, other Independent Brand Designers, or Cool Girl Squad Customers.
3.4 Reporting Policy Violation
An Independent Brand Designer who observes a policy violation by another Independent Brand Designer should submit a written and signed letter (e-mail will not be accepted) of the violation directly to the Company Compliance Department. The letter shall set forth the details of the incident as follows:
- The nature of the violation and specific facts to support the allegation;
- Number of occurrences and dates;
- The Persons involved; and
- Any other supporting documentation
Upon presentation to the Company Compliance Department, we will research the incident in question and take appropriate action if necessary. This section refers to the general reporting of policy violations as observed by other Independent Brand Designers for the mutual effort to support, protect, and defend the integrity of the Cool Girl Squad business and sales opportunity. If an Independent Brand Designer has a grievance or complaint against another Independent Brand Designer which directly relates to his, her or its Cool Girl Squad business, the procedures set forth in these Policies must be followed.
- The Sponsor is the person who introduces a person, whether a Customer or an Independent Brand Designer, to the Cool Girl Squad business and helps them complete their enrollment, supports those in their downline, and continues to provide training and assistance for all those in their downline.
- The Company recognizes the Sponsor as the name(s) shown on the first:
- Physically signed Independent Brand Designer Agreement on file; or
- Electronically signed Independent Brand Designer Agreement from either the Company’s website or an Independent Brand Designer’s replicated website.
- An Independent Brand Designer Agreement that contains notations such as “by phone” or the signatures of other individuals (i.e. Sponsors, Spouses, relatives, or friends) is not valid and will not be accepted by the Company.
- We recognize that each new prospect has the right to ultimately choose his or her own Sponsor, but We will not allow Independent Brand Designers to engage in unethical sponsoring activities.
- All active Independent Brand Designers in good standing have the right to Sponsor and enroll others into the Cool Girl Squad business. While engaged in sponsoring activities, it is not uncommon to encounter situations when more than one Independent Brand Designer will approach the same prospect. It is the accepted courtesy that the new prospect will be sponsored by the first Independent Brand Designer who presented a comprehensive introduction to the Company’s products or opportunity.
3.6 Cross Sponsoring Prohibition
- “Cross sponsoring” is defined as the enrollment of an individual or Business entity into a different line of sponsorship who has already signed an Independent Brand Designer Agreement. Actual or attempted cross sponsoring is not allowed. If cross sponsoring is verified by the Company, sanctions up to and including termination of an Independent Brand Designer’s business may be imposed.
- The use of a Spouse’s or relative’s name, trade names, assumed names, DBA names, corporation, partnership, trust, Federal ID numbers, or fictitious ID numbers to evade or circumvent this policy is strictly prohibited.
- This policy does not prohibit the transfer of a Cool Girl Squad business in accordance with the Sale or
Transfer policy set forth herein.
3.7 Adherence to the Cool Girl Squad Compensation Plan
- An Independent Brand Designer must adhere to the terms of the Company Compensation Plan. Any deviation from the Compensation Plan is strictly prohibited.
- An Independent Brand Designer shall not offer the Cool Girl Squad opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically set forth in official Company materials.
- An Independent Brand Designer shall not require or encourage a current or prospective Customer/ Independent Brand Designer to participate in the Cool Girl Squad business in any manner that varies from the Compensation Plan or other Company materials.
- Other than such purchases or payments required to naturally build their business, an Independent Brand Designer shall not require or encourage a current or prospective Customer/ Independent Brand Designer to make a purchase from or payment to any individual or other entity as a condition to participating in the Company Compensation Plan.
3.8 Adherence to Laws and Ordinances
Many cities and counties have laws regulating certain home-based businesses. In most cases, these ordinances do not apply to Independent Brand Designers because of the nature of the business. However, Independent Brand Designers must check their local laws and obey the laws that do apply to them. An Independent Brand Designer shall comply with all federal, state, and local laws and regulations in their independent conducting of Cool Girl Squad business.
3.9 Compliance with Applicable Income Tax Laws
- Cool Girl Squad will automatically provide a complete 1099 Miscellaneous Income Tax form (nonemployee compensation) to each United States Independent Brand Designer whose earnings for the year is at least $600 or who has purchased more than $5,000 of Cool Girl Squad products for resale, or who received trips, prizes or awards valued at $600 or more. If earnings and purchases are less than stated above, IRS forms will be sent only at the request of the Independent Brand Designer, and a minimum charge of $50 may be assessed by the Company.
- An Independent Brand Designer accepts sole responsibility for and agrees to pay all federal, state, and local taxes on any income generated as an independent business owner, and further agrees to indemnify Cool Girl Squad from any failure to pay such tax amounts when due.
- If an Independent Brand Designer’s business is tax exempt, the Federal Tax Identification number must be provided to the Company in writing.
- Cool Girl Squad encourages all Independent Brand Designers to consult with a tax advisor for additional information for their business.
3.10 One Cool Girl Squad Business Per Person
An Independent Brand Designer may operate or have an ownership interest, whether legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one Cool Girl Squad business. No individual may have, operate, or receive compensation from more than one Cool Girl Squad businesses. If each subsequent family position is placed within the first enrolled family member’s frontline, individuals in the same family unit may each enter or have an interest in their own separate Cool Girl Squad businesses. A “family unit” is defined as Spouses and dependent children living or conducting business at the same address. Note: Children of legal age to contract and at least 18 years of age are not considered a part of their parents’ household.
3.11 Actions of Household Members or Affiliated Parties
If any member of your immediate household engages in any activity which, if performed by you, would violate any provision of the Agreement, such activity will be deemed a violation by you. As a result, the Company may take disciplinary action pursuant to these Policies and Procedures against you. Similarly, if any individual associated in any way with a corporation, partnership, LLC, trust or other entity (collectively “Business Entity”) violates the Agreement, such action(s) will be deemed a violation by the Business Entity, and the Company may take disciplinary action against the Business Entity. Likewise, if an Independent Brand Designer enrolls in Cool Girl Squad as a Business Entity, each affiliated party of the Business Entity shall be personally and individually bound to, and must comply with, the terms and conditions of the Agreement.
3.12 Solicitation for Other Companies or Products
- An Independent Brand Designer may participate in other direct sales, multilevel, network marketing or relationship marketing business ventures or marketing opportunities (collectively “Network Marketing”). However, during the Term of this Agreement and for one (1) year thereafter, you may not recruit any other Cool Girl Squad Customer or Independent Brand Designer for any other Network Marketing business, unless said Customer or Independent Brand Designer was personally sponsored by you.
- The term “recruit” means actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way (either directly or through a third party), another Customer or Independent Brand Designer to enroll or participate in any Network Marketing opportunity. This conduct represents recruiting even if the Independent Brand Designer’s actions are in response to an inquiry made by another Customer or Independent Brand Designer.
- However, you may sell non-competing products or services to Cool Girl Squad Customers and Independent Brand Designers. Specifically, a non-competing company is defined as a Network Marketing company that does Snap Jewelry products.
- Due to the visibility of our higher-ranking Independent Brand Designers, Cool Girl Squad Independent Brand Designers who achieve the rank of Pearl Manager or above agree not to participate in any Network Marketing or party plan company, regardless if the company sells competing products or not. This restriction applies regardless if the Independent Brand Designer has fallen out of Pearl Manager qualification.
- An Independent Brand Designer may not display or bundle Cool Girl Squad products or services, in sales literature, on a website or in sales meetings, with any other products or services to avoid confusing or misleading a prospective Customer or Independent Brand Designer into believing there is a relationship between Cool Girl Squad, and the non-Company related products or services.
- You may not offer any non-Company related opportunity, products, or services at any Cool Girl Squad related meeting, seminar, or convention, or immediately following said event(s).
- A violation of any of the provisions in this section shall constitute unreasonable and unwarranted contractual interference between the Company and you. As a result, such actions would inflict irreparable harm on Cool Girl Squad. In such event, the Company may, at its sole discretion, impose any sanction it deems necessary and appropriate against the Independent Brand Designer or Independent Brand Designer’s business including termination, the request for immediate injunctive relief, or the pursuit of any other legal and equitable remedies.
3.13 Presentation of the Cool Girl Squad Opportunity
In presenting the Company opportunity to potential Customers and Independent Brand Designers, you must comply with the following provisions:
- Abstain from a misquote or omission of any significant material fact about the Compensation Plan.
- Make clear that the Compensation Plan is based upon sales of Cool Girl Squad products and services to consumers.
- Make clear that success can be achieved only through substantial independent efforts and hard work.
- Abstain from unauthorized income projections, claims, or guarantees* during any presentation or discussion the Cool Girl Squad opportunity or Compensation Plan to prospective Customers or Independent Brand Designers, frequently citing to the Cool Girl Squad Income Disclaimer as provided on the Company website.
- Abstain from any claims regarding Company products or services not found in official Company materials.
- Refrain from the promotion of Cool Girl Squad in any country where We have not yet established a “presence.”
*Note: The terms “income claim” and/or “earnings representation” (collectively “income claim”) include the following: (1) statements of average earnings, (2) statements of non-average earnings, (3) statements of earnings ranges, (4) income testimonials, (5) lifestyle claims, and (6) hypothetical claims. Examples of “statements of non-average earnings” include, “Our number one Independent Brand Designer earned over ten thousand dollars last year” or “Our average-ranking Independent Brand Designer earns five thousand dollars per month.” An example of a “statement of earnings ranges” is “The monthly income for our higher-ranking Independent Brand Designers is ten thousand dollars on the low end to twenty-five thousand dollars a month on the high end.”
3.14 Sales Requirements are Governed by the Compensation Plan
- For all Cool Girl Squad products, the Company provides a set sales price. There are no exclusive territories granted to anyone. No franchise fees are applicable to a Cool Girl Squad business.
- The Cool Girl Squad program is built on sales to the ultimate consumer. Thus, Independent Brand Designers must only purchase inventory that they and their family will personally consume, will be used as a sales tool, or will be resold to others for ultimate use. Independent Brand Designers must never attempt to influence any other Independent Brand Designers to buy more products than they can reasonably use or sell to Customers in a month.
The downline of an Independent Brand Designer who is terminated/resigned will be sponsored by a ‘Cool Girl Squad Virtual’ account that will replace this Independent Brand Designer. If the existing upline of the person who is now terminated/resigned is at least 1 or above title ranked than the terminated/resigned, the downline rolls up to the upline immediately without any condition.
In case the existing upline is ranked the same or below the terminated/resigned, the ‘Cool Girl Squad Virtual’ account will sponsor the downline for a minimum of 1 month. During the 1 month, the existing upline could earn the downline if they achieve the necessary requirements. If the existing upline cannot achieve the requirements, then the downline stays under the ‘Cool Girl Squad Virtual’ account.
4.1 General Order Policies
- “Bonus Buying” is strictly and absolutely prohibited. Bonus Buying includes any of the following scenarios: (I) the enrolment of individuals or entities without the knowledge of and/or execution of an Agreement by such individuals or Business Entities; (II) the fraudulent enrolment of an individual or entity as a Customer or Independent Brand Designer; (III) the enrolment or attempted enrolment of non-existent individuals or Business Entities as Customers or Independent Brand Designers (“phantoms”); (IV) purchasing Cool Girl Squad products or services on behalf of another Customer or Independent Brand Designer, or under another Customer’s or Independent Brand Designer’s ID number, to qualify for commissions or bonuses; (V) purchasing excessive amounts of products or services that cannot reasonably be used or resold in a month; and/or (VI) any other mechanism or artifice to qualify for rank advancement, incentives, prizes, commissions, or bonuses that is not driven by bona fide product or service purchases by end user consumers.
- An Independent Brand Designer shall not use another Customer’s or Independent Brand Designer’s credit card or debit checking account to enroll in Cool Girl Squad or purchase products or services without the account holder’s written permission. Such documentation must be kept by the Independent Brand Designer indefinitely in case we need to reference this.
- Regarding an order with an invalid or incorrect payment, we will attempt to contact the Independent Brand Designer by phone, mail, or e-mail to obtain another form of payment. If these attempts are unsuccessful after ten (10) business days, the order will be canceled.
- Prices are subject to change without notice.
- A Customer or Independent Brand Designer who is a recipient of a damaged or incorrect order must notify the Company within 5 calendar days from receipt of the order and follow the procedures as set forth in these Policies.
4.2 Insufficient Funds
- All checks returned for insufficient funds will be re-submitted for payment. A $35 fee will be charged to the account of the Customer or Independent Brand Designer for all returned checks and insufficient funds.
- Any outstanding balance owed to Us by a Customer or Independent Brand Designer of yours from NSF (non-sufficient funds) checks returned check fees or insufficient fund fees (ACH) will be withheld from your future bonus and commission checks.
- All transactions involving returned checks or insufficient funds through ACH or credit card, which are not resolved in a timely manner by the Independent Brand Designer, constitute grounds for disciplinary sanctions.
- If a credit card order or automatic debit is declined the first time, the Customer or Independent Brand Designer will be contacted for an alternate form of payment. If payment is declined a second time, the Customer or Independent Brand Designer may be deemed ineligible to purchase Company products or services in the future.
4.3 Sales Tax Obligation
- You as an Independent Brand Designer shall comply with all state and local taxes and regulations governing the sale of Our products and services.
- We will collect and remit sales tax in NC on Independent Brand Designer orders unless an Independent Brand Designer furnishes Us with the appropriate Resale Tax Certificate form. When orders are placed with Us, sales tax is prepaid based upon the suggested retail price. We will remit the sales tax to the appropriate state and local jurisdictions. The Independent Brand Designer may recover the sales tax when a sale is made.
- We encourage each Independent Brand Designer to consult with a tax advisor for additional information about their Cool Girl Squad business.
5.0 PAYMENT OF COMMISSIONS & BONUSES
5.1 Bonus and Commission Qualifications
- An Independent Brand Designer must be active (as defined in the Glossary of Terms) and in compliance with these Policies and Procedures to qualify for bonuses and commissions. So long as an Independent Brand Designer complies with the terms of the Agreement, we shall pay commissions to such Independent Brand Designer in accordance with the Compensation Plan.
- We will not issue a payment to an Independent Brand Designer without the receipt of a completed and signed Independent Brand Designer Agreement via hard copy or through Electronic Authorization.
- We reserve the right to postpone bonus and commission payments until such time the cumulative amount exceeds $25.
5.2 Computation of Commissions and Discrepancies
- An Independent Brand Designer placing “its” first order must review “its” monthly statement and bonus/commission reports located in the back office of their website and report any discrepancies within thirty (30) days of receipt. After this initial thirty-day “grace period, an Independent Brand Designer expressly waives any right to commission recalculation.
- An Independent Brand Designer who believes a miscalculation of bonuses/commissions has occurred submit a ticket through your Cool Girl Squad Back Office via firstname.lastname@example.org and include a detailed description and account number within the body of the ticket.
- For additional information on payment of commissions, please review the Compensation Plan.
5.3 Adjustments to Bonuses and Commissions for Returned Products
- An Independent Brand Designer receives bonuses and commissions based on the actual sales of products and services to end consumers. When a product or service is returned to the Company for a refund from the end consumer, the bonuses and commissions attributable to the returned product or service will be deducted from the Independent Brand Designer who received bonuses or commissions on said sales. Deductions will occur in the month in which the refund is given and continue every pay period thereafter until the bonus/and or commission is recovered.
- If an Independent Brand Designer terminates “its” business, and the amounts of the bonusesor commissions attributable to the returned products or services have not yet been fully recovered by the Company, the remainder of the outstanding balance may be offset against any other amounts that may be owed by the Company to the terminated Independent Brand Designer.
5.4. Chargeback Policy
When a card processor forcibly reverses a credit card transaction, returning funds to the cardholder, it is known as a chargeback. Chargebacks are usually issued when a cardholder reports fraud to their credit card company. When Cool Girl Squad receives a chargeback notice, the account in which the service was purchased is immediately blocked, and all related services in the account are suspended. Cool Girl Squad will attempt to “claw back” all commission paid plus $50 chargeback fee via the reversed transaction. This means Cool Girl Squad will seek to recover funds from anyone that received a reward from transactions that are ultimately reversed. Until the full funds are received, all access to Cool Girl Squad services and programs will be suspended.
6.2 Expectation of Privacy
- Cool Girl Squad recognizes and respects the importance its Customers and Independent Brand Designers place on the privacy of their financial and personal information. Thus, we will make reasonable efforts to safeguard the privacy of and maintain the confidentiality of its Customers’ and Independent Brand Designers’ financial and account information and nonpublic personal information.
- By entering into the Independent Brand Designer Agreement, you authorize the Company to disclose your name and contact information to upline Independent Brand Designers solely for activities related to the furtherance of the Cool Girl Squad business. An Independent Brand Designer hereby agrees to maintain the confidentiality and security of such information and to use it solely for the purpose of supporting and servicing the downline organization and conducting Cool Girl Squad business.
6.3 Employee Access to Information
We limit the number of employees who have access to Customers’ and Independent Brand Designers’ nonpublic personal information.
6.4 Restrictions on the Disclosure of Account Information
Cool Girl Squad will not share non-public personal information or financial information about current or former Customers or Independent Brand Designers with third parties, except as permitted or required by laws and regulations, court orders, or to serve the Customers’ or Independent Brand Designers’ interests or to enforce its rights or obligations under these Policies and Procedures, the Independent Brand Designer Agreement, or with written permission from the accountholder on file.
7.0 PROPRIETARY INFORMATION AND TRADE SECRETS
7.1 Business Reports, Lists, and Proprietary Information
By completing and signing the Independent Brand Designer Agreement, you acknowledge that Business Reports, lists of Customer and Independent Brand Designer names and contact information, and any other information, which contain financial, scientific or other information both written or otherwise circulated by the Company pertaining to the business of Cool Girl Squad (collectively, “Reports”), are confidential and proprietary information and trade secrets belonging to the Company.
7.2 Obligation of Confidentiality
During the Term of the Independent Brand Designer Agreement and for a period of five (5) years after the termination or expiration of the Independent Brand Designer Agreement between you and Us, you shall not:
- Use the information in the Reports to compete with Cool Girl Squad or for any purpose other than promoting your business;
- Use or disclose to any person or entity any confidential information contained in the Reports, including the replication of the genealogy in another network marketing company.
7.3 Breach and Remedies
The Independent Brand Designer acknowledges that such proprietary information is of such character as to render it unique and that disclosure or use thereof in violation of this provision will result in irreparable damage to Cool Girl Squad and to independent Cool Girl Squad businesses. The Company and its Independent Brand Designers will be entitled to injunctive relief or to recover damages against any Independent Brand Designer who violates this provision in any action to enforce its rights under this section. The prevailing party shall be entitled to an award of attorney’s fees, court costs and expenses.
7.4 Return of Materials
Upon demand by the Company, any current or former Independent Brand Designer will return the original and all copies of all “Reports” to the Corporate office together with any other Company confidential information in such person’s possession. Independent Brand Designer shall contact Corporate office to return materials via sending an e-mail to email@example.com subject compliance.
8.0 ADVERTISING, PROMOTIONAL MATERIAL, USE OF COMPANY NAMES AND TRADEMARKS
8.1 Labeling, Packaging, and Displaying Products
- An Independent Brand Designer may not re-label, re-package, refill, or alter labels of any Cool Girl Squad product or service information, materials, or program(s) in any way. Such re-labeling or re-packaging violates federal and state laws, which may result in criminal or civil penalties or liability.
- An Independent Brand Designer shall not cause any Company product or service or any Company trade name to be sold or displayed in retail establishments, including but not limited to kiosks in malls, during normal business hours.
- An Independent Brand Designer may sell Company products and services and display the Company trade name at any appropriate display booth (such as trade shows) upon prior written approval from the Company. The request for Company approval may be made by way of email.
- We reserve the right to refuse authorization to participate at any function that it does not deem a suitable forum for the promotion of its products and services.
8.2 Use of Company Names and Protected Materials
- An Independent Brand Designer must safeguard and promote the good reputation of the Company and the products and services it markets. The marketing and promotion of the Company, the Cool Girl Squad opportunity, the Compensation Plan, and its products and services will be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, unethical, or immoral conduct and practices.
- All promotional materials supplied or created by Us must be used in their original form and cannot be changed, amended, or altered except with prior written approval from the Company Compliance Department.
- The name Cool Girl Squad, each of its product and service names and other names that have been adopted by the Company in connection with its business are proprietary trade names, trademarks, and service marks of Cool Girl Squad. As such, these marks are of great value to the Company and are supplied to Independent Brand Designers for their use only in an expressly authorized manner.
- An Independent Brand Designer’s use of the name “Cool Girl Squad” is restricted to protect the Company’s proprietary rights, ensuring that the Company protected names will not be lost or compromised by unauthorized use. Use of the Cool Girl Squad name on any item not produced by the Company is prohibited except as follows:
- [Independent Brand Designer’s name] An Independent Brand Designer of Cool Girl Squad; or
- [Independent Brand Designer’s name] Independent Business Owner and Independent Brand Designer of Cool Girl Squad products and services.
- Further procedures relating to the use of the Cool Girl Squad name are as follows:
- All stationary (i.e., letterhead, envelopes, and business cards) bearing the Cool Girl Squad name or logo intended for use by the Independent Brand Designer must be approved in writing by the Company Compliance Department.
- Cool Girl Squad Independent Brand Designers may list “Independent Brand Designer of Cool Girl Squad” in the white pages of the telephone directory under his or her own name
III. Independent Brand Designers may not use the name “Cool Girl Squad ,” “Cool Girl Squad US Corporate Office,” or “Corporate Office of Cool Girl Squad” in answering the telephone, creating a voice message or using an answering service, such as to give the impression to the caller that they have reached the domestic, corporate office. They may state, “Cool Girl Squad Independent Brand Designer”.
- Independent Brand Designers can use our logo for custom t-shirts, hoodies, and other items for their organizations. The sale of the custom items is strictly prohibited.
- Independent Brand Designers must use the logos that are in the Cool Girl Squad Back Office and they cannot be modified in any way shape or form. The term “Independent Brand Designer” may be added.
- Certain photos and graphic images used by Cool Girl Squad in its advertising, packaging, and websites are the result of paid contracts with outside vendors that do not extend to Independent Brand Designers. If an Independent Brand Designer wants to use these photos or graphic images, they must negotiate individual contracts with the vendors for a fee.
- An Independent Brand Designer shall not appear on or make use of television or radio or make use of any other media to promote or discuss the Company, its programs, products, or services without prior written permission from the Company Compliance Department.
- An Independent Brand Designer may not produce for sale or distribution any Company event or speech, nor may an
Independent Brand Designer reproduce Company audio or video clips for sale or for personal use without prior written permission from the Company Compliance Department.
- Cool Girl Squad reserves the right to rescind its prior approval of any sales aid or promotional material to comply with changing laws and regulations and may request the removal from the marketplace of such materials without financial obligation to the affected Independent Brand Designer.
- An Independent Brand Designer shall not promote non-Cool Girl Squad products or services in conjunction with Company products or services on the same websites or same advertisement.
- Claims(which include personal testimonials) as to therapeutic, curative, or beneficial properties of any Cool Girl Squad bath and body products offered may not be made except those contained in official Company literature. No Independent Brand Designer may make any claim that Cool Girl Squad and its marketed products are useful in the cure, treatment, diagnosis, mitigation, or prevention of any diseases. Such statements can be perceived as medical or drug claims. Not only do such claims violate Cool Girl Squad policies, but also, they potentially violate federal and state laws and regulations, including the federal Food, Drug, and Cosmetic Act and Federal Trade Commission Act.
8.3 Faxes and E-mail Limitations
- Except as provided in this section, an Independent Brand Designer may not use or transmit unsolicited faxes, email, mass email distribution, or “spamming” that advertises or promotes the operation of the Cool Girl Squad business. The exceptions are:
- Faxes or e-mailing any person who has given prior permission or invitation;
- Faxing or e-mailing any person with whom the Independent Brand Designer has established a prior business or personal relationship.
- In all states where prohibited by law, an Independent Brand Designer may not transmit, or cause to be transmitted through a third party, (by telephone, facsimile, computer or other device), an unsolicited advertisement to any equipment, which has the capacity to transcribe text or images from an electronic signal received over a regular telephone line, cable line, ISDN, T1 or any other signal carrying device, except as set forth in this section.
- All faxes, e-mail or computer broadcasted documents subject to this provision shall include each of the following:
- A clear and obvious identification that the fax or e-mail message is an advertisement or solicitation. The words “advertisement” or “solicitation” should appear in the subject line of the message;
- A clear return path or routing information;
III. The use of legal and proper domain name;
- A clear and obvious notice of the opportunity to decline to receive further commercial facsimile or e-mail messages from the sender;
- Unsubscribe or opt-out instructions should be the very first text in the body of the message box in the same size text as the majority of the message;
- The true and correct name of the sender, valid senders’ fax or e-mail address, and a valid sender physical address;
VII. The date and time of the transmission;
VIII. Upon notification by recipient of his or her request not to receive further faxed or e-mailed documents, an Independent Brand Designer shall not transmit any further documents to that recipient.
- All e-mail or computer broadcasted documents subject to this provision shall not include any of the
- Use of any third-party domain name without permission; and
- Sexually explicit materials.
8.4 Internet and Third-Party Website Restrictions
- An Independent Brand Designer may not use or attempt to register any of Cool Girl Squad trade names, trademarks, service names, service marks, product names, URLs, advertising phrases, the Company’s name or any derivative thereof, for any purpose including, but not limited to, Internet domain names (URL), third party websites, social media groups, e-mail addresses, web pages, ads or blogs.
- An Independent Brand Designer cannot use or register domain names, email addresses, and/or online aliases that could cause confusion, be misleading, or deceive individuals into believing that a communication is from or is the property of Cool Girl Squad corporate.
Regarding the registered mark of Cool Girl Squad in URLs, examples of improper use include but are not limited to:
- coolgirlsquad2021@ windstream .com
- cool girl squad outlook .com
III. www.facebook.com/Cool Giirl Squad ; or
- Any other derivatives as described herein.
Examples of permitted URLs, email addresses, and online aliases might appear as follows:
- Independent Cool Girl Squad Janet
Determination as to what could cause confusion, mislead, or be considered deceptive is at the sole discretion of the Company.
- An Independent Brand Designer may not sell Cool Girl Squad products, services or offer the Cool Girl Squad sales opportunity via “online auctions,” such as eBay®, or “online marketplaces” such as Amazon or Etsy. For more information, please see the Cool Girl Squad Online Marketplace Provision
- The Company provides all Independent Brand Designers with one (1) replicated website. A Cool Girl Squad replicated website is a personal website for Independent Brand Designers that is hosted on Company servers. As for any Independent Brand Designer who wishes to develop its own third-party website (or site not affiliated with the Company and independently owned and operated by the Independent Brand Designer) must seek and receive the Company’s prior written approval before going live with such third-party website. Should the Company grant the Independent Brand Designer approval to use a third-party website, the site must:
- Identify yourself as an Independent Brand Designer for Cool Girl Squad
- Use only the approved images and wording authorized by the Company
III. Adhere to the branding, trademark, and image usage policies described in this document.
- Adhere to any other provision regarding the use of a third-party website described in this document
- Agree to modify your website to comply with current or future Company policies.
- All marketing materials used on an Independent Brand Designer’s third-party website must be provided by the
Company in writing.
- To avoid confusion, the following three elements must also be prominently displayed at the top of every page of any third-party website:
- The Cool Girl Squad *(Yams and Hot Sauce LLC) Independent Brand Designer Logo
- Your Name and Title
- Cool Girl Squad Corporate Website Redirect Button
- An Independent Brand Designer may not use third-party sites that contain materials copied from corporate
sources (such as Cool Girl Squad brochures, videos, recorded devices, events, presentations, and corporate websites). This policy ensures brand consistency, allows Customers and Independent Brand Designers to stay up to date with changing products, services, and information, facilitates enrollment under the correct Sponsor, and assists in compliance with government regulations.
1.If an Independent Brand Designer who has received authorization to create and post any third-party website has the business voluntarily or involuntarily canceled for any reason, or if the Company revokes authorization allowing the Independent Brand Designer to maintain such a third-party website, the Independent Brand Designer shall assign the URL to the third-party website to the Company within three (3) days from the date of the cancellation and/or re-direct all traffic to the site as directed by the Company. We reserve the right to revoke any Independent Brand Designer’s right to use a third-party website at any time if We believe that such revocation is in the best interest of Cool Girl Squad, its Independent Brand Designers and/or Customers. Decisions and corrective actions in this area are at the Company’s sole discretion.
- Social Media sites may be used to market Cool Girl Squad products. PROFILES AN INDEPENDENT BRAND DESIGNER GENERATES IN ANY SOCIAL COMMUNITY WHERE COOL GIRL SQUAD IS DISCUSSED OR MENTIONED MUST CLEARLY IDENTIFY THE INDEPENDENT BRAND DESIGNER AS SUCH, and when an Independent Brand Designer participates in those communities, “it” must avoid inappropriate conversations, comments, images, video, audio, applications or any other adult, profane, discriminatory or vulgar content. The determination of what is inappropriate is at the Company’s sole discretion, and offending Independent Brand Designers will be subject to disciplinary action. Banner ads and images used on these sites must be current and must come from the Cool Girl Squad approved library. If a link is provided, it must link to the posting Independent Brand Designer’s replicated website or an approved third-party website.
- Anonymous postings or use of an alias on any Social Media site is prohibited, and offending Independent Brand Designers will be subject to disciplinary action.
- Independent Brand Designers may not use blog spam, spamdexing, or any other mass-replicated methods to leave blog comments. Comments Independent Brand Designers create or leave must be useful, unique, relevant, and specific to the blog’s article.
- Independent Brand Designers must disclose their full name on all Social Media postings, and conspicuously identify themselves as an Independent Brand Designer for Cool Girl Squad. Anonymous postings or use of an alias is prohibited.
- Postings that are false, misleading, or deceptive are prohibited. This includes, but is not limited to, false or deceptive postings relating to the Cool Girl Squad income opportunity, the Company products and services, and/or your biographical information and credentials.
- Independent Brand Designers are personally responsible for their postings and all other online activity that relates to Cool Girl Squad. Therefore, even if an Independent Brand Designer does not own or operate a blog or Social Media site, an Independent Brand Designer’s post(s) to any such site that relates to Cool Girl Squad or which can be traced to the Company makes the Independent Brand Designer responsible for the posting. Independent Brand Designers are also responsible for postings which occur on any blog or Social Media site that the Independent Brand Designer owns, operates, or controls.
- The distinction between a Social Media site and a website may not be clear-cut, because some Social Media sites are particularly robust; therefore, Cool Girl Squad reserves the sole and exclusive right to classify certain Social Media sites as third-party websites and require that Independent Brand Designers using, or who wish to use, such sites adhere to the Cool Girl Squad policies relating to third-party websites.
- If your Cool Girl Squad business is cancelled for any reason, you must discontinue using the Company name, and all of the Company’s trademarks, trade names, service marks, and other intellectual property, and all derivatives of such marks and intellectual property, in any postings and all Social Media sites that you utilize. If you post on any Social Media site on which you have previously identified yourself as an Independent Brand Designer of Cool Girl Squad, you must conspicuously disclose that you are no longer a Cool Girl Squad Independent Brand Designer business owner.
- Failure to comply with these Policies for conducting business online may result in the Independent Brand Designer losing their right to advertise and market Company products, services and the Cool Girl Squad opportunity online or any other disciplinary action available under the Policies and Procedures.
8.5 Advertising and Promotional Materials
- No special enticement advertising is allowed. This includes, but is not limited to, such offers that grant advantages beyond those available through the Company.
- Advertising and all forms of communications must adhere to principles of honesty and propriety.
- All advertising, including, but not limited to, print, Internet, computer bulletin boards, television, radio, etc., are subject to prior written approval by the Company Compliance Department.
- All requests for approvals with respect to advertising must be directed in writing to the Company Compliance Department.
- Corporate approval is not required to place blind ads that do not mention Cool Girl Squad, its employees, any of its products, services, designs, symbols, programs, and trademarked, copyrighted, or otherwise protected materials.
- The Company reserves the right to rescind its prior approval of submitted advertising or promotional materials to comply with changing laws and regulations and may require the removal of such advertisements from the marketplace without obligation to the affected Independent Brand Designer.
- Sample products are not intended for resale.
8.6 Testimonial Permission
By signing the Independent Brand Designer Agreement, you give us permission to use your testimonial or image and likeness in corporate sales materials, including but not limited to print media, electronic media, audio, and video. In consideration of being allowed to participate in the Cool Girl Squad opportunity, you waive any right to be compensated for the use of your testimonial or image and likeness even though the Company may be paid for items or sales materials containing such image and likeness. In some cases, an Independent Brand Designer’s testimonial may appear in another Independent Brand Designer’s advertising materials. If you do not wish to participate in Cool Girl Squad sales and marketing materials, you should provide a written notice to the Company Compliance Department to ensure that your testimonial or image and likeness will not be used in any corporate materials, corporate recognition pieces, advertising or recordings of annual events.
8.7 Telemarketing Limitations
- An Independent Brand Designer must not engage in telemarketing in relation to the operation of his or her Cool Girl Squad business. The term “telemarketing” means the placing of one or more telephone calls to an individual or entity to induce the purchase of Cool Girl Squad products or services, or to recruit them for the Cool Girl Squad opportunity.
- The Federal Trade Commission (“FTC”) and the Federal Communications Commission (“FCC”) each have laws that restrict telemarketing practices. Both federal agencies, as well as several states have “do not call” regulations as part of their telemarketing laws.
- While an Independent Brand Designer may not consider herself a “telemarketer” in the traditional sense, these regulations broadly define the term “telemarketer” and “telemarketing” so that the unintentional action of calling someone whose telephone number is listed on the Federal “Do Not Call” registry could cause the Independent Brand Designer to violate the law. These regulations must not be taken lightly, as they carry significant penalties (up to $11,000 per violation).
- “Cold calls” or “state-to-state calls” made to prospective Customers or Independent Brand Designers that promote either Cool Girl Squad products, services or the Cool Girl Squad opportunity is considered telemarketing and is prohibited.
- Exceptions to Telemarketing Regulations. An Independent Brand Designer may place telephone calls to prospective Customers or Independent Brand Designers under the following limited situations:
- If the Independent Brand Designer has an established business relationship with the prospect
- In response to the prospect’s personal inquiry or application regarding a product or service offered by the Independent Brand Designer within three (3) months immediately before the date of such a call
- If the Independent Brand Designer receives written and signed permission from the prospect authorizing the Independent Brand Designer to call
- If the call is to family members, personal friends, and acquaintances. However, if an Independent Brand Designer makes a habit of collecting business cards from everyone, “it” meets and subsequently calls them, the FTC may consider this a form of telemarketing that is not subject to this exemption
- An Independent Brand Designer engaged in calling “acquaintances,” must make such calls on an occasional basis only and not as a routine practice.
- An Independent Brand Designer shall not use automatic telephone dialing systems in the operation of her Cool Girl Squad businesses.
- Failure to abide by Company policies or regulations as set forth by the FTC and FCC regarding telemarketing may lead to sanctions against the Independent Brand Designer’s business, up to and including termination of the business.
- By signing the Independent Brand Designer Agreement, or by accepting commission checks, other payments, or awards from Cool Girl Squad , an Independent Brand Designer gives permission to Cool Girl Squad and other Independent Brand Designers to contact them as permitted under the Federal Do Not Call regulations.
In the event an Independent Brand Designer violates this section, we reserve the right to institute legal proceedings to obtain monetary or equitable relief.
9.0 CHANGES TO AN INDEPENDENT BRAND DESIGNER’S BUSINESS
9.1 Modification of the Independent Brand Designer Agreement
An Independent Brand Designer may modify its existing Independent Brand Designer Agreement (i.e., change a social security number to a Federal ID number) by submitting a written request, accompanied by a new Independent Brand Designer Agreement, if applicable, completed with fresh signatures (not a “crossed out” or “white-out” version of the first Agreement), and any appropriate supporting documentation.
9.2 Change Sponsor or Placement for Inactive Independent Brand Designer
- Independent Brand Designers have 3 days after registering to request a change of sponsor. At the discretion of Cool Girl Squad , Independent Brand Designers who have not earned an accumulation of 10 Personal Volume within the first 30 days would be considered inactive and their accounts would be closed. Independent Brand Designers who have not tendered a letter of resignation, are eligible to re-enroll in the Company under the Sponsor/Placement of their choice.
- Upon written notice to the Company that a former Independent Brand Designer wishes to re-enroll, Cool Girl Squad will “compress” (close) the original account. A new Independent Brand Designer ID number will then be issued to the former Independent Brand Designer.
- Such Independent Brand Designer does not retain former rank, downline, or rights to commission checks from the former organizations.
- The Company reserves the right to correct Sponsor or Placement errors at any time and in whatever manner it deems necessary.
9.3 Change Organizations
- If an Independent Brand Designer wishes to transfer organizations, “it” must submit a letter of resignation to the Company Customer Service Department and remain inactive (neither buy or sell) an accumulation of 10 Personal Volume within their first 30 days from the receipt of the letter before being eligible to re-enroll under a different Sponsor/Placement.
- The Company retains the right to approve or deny any request to re-enroll after an Independent Brand Designer’s resignation.
- If re-enrollment is approved, the former Independent Brand Designer will be issued a new Independent Brand Designer ID number
and will be required to submit a new Independent Brand Designer Agreement. The Independent Brand Designer will not be entitled to keep any former rank, downline, or rights to commission checks from any prior organization.
9.4 Unethical Sponsoring
- Unethical sponsoring activities include, but are not limited to, enticing, bidding, or engaging in unhealthy competition in trying to acquire a prospect or new Independent Brand Designer from another Independent Brand Designer or influencing another Independent Brand Designer to transfer to a different sponsor.
- Allegations of unethical sponsoring must be reported in writing to the Company Compliance
Department within the first 90 days of enrollment. If the reports are substantiated, Cool Girl Squad may transfer the Independent Brand Designer or the Independent Brand Designer’s downline to another sponsor, Placement, or organization without approval from the current up-line Sponsor or Placement Independent Brand Designers. The Company remains the final authority in such cases.
- Cool Girl Squad prohibits the act of “Stacking.” Stacking is the unauthorized manipulation of the Company compensation system and/or the marketing plan to trigger commissions or cause a promotion off a downline Independent Brand Designer in an unearned manner. One example of stacking occurs when a Sponsor places participant under an inactive downline without his or her knowledge to trigger unearned qualification for commissioning. Stacking is unethical and unacceptable behavior, and as such, it is a punishable offense with measures up to and including the termination of the independent consultant positions of all individuals and/or entities found to be directly involved.
- Should Independent Brand Designers engage in solicitation and/or enticement of members of another direct sales
company to sell or distribute Cool Girl Squad products and services to, they bear the risk of being sued by the other direct sales company. If any lawsuit, arbitration, or mediation is brought against an Independent Brand Designer alleging that they engaged in inappropriate recruiting activity of another company’s sales force or Customers, the Company will not pay any of the Independent Brand Designer’s defense costs or legal fees, nor will the Company indemnify the Independent Brand Designer for any judgment, award, or settlement.
9.5 Sell, Assign or Delegate Ownership
- To preserve the integrity of the hierarchical structure, it is necessary for Cool Girl Squad to place restrictions on the transfer, assignment, or sale of a business.
- An Independent Brand Designer may not sell or assign rights or delegate the position as an Independent Brand Designer without prior written approval by the Company, which approval will not be unreasonably withheld. Any attempted sale, assignment, or delegation without such approval may be voided at the discretion of the Company.
- Should the sale be approved by the Company, the Buyer assumes the position of the Seller at the current qualified title, but at the current “paid as” rank, at the time of the sale and acquires the Seller’s Downline.
- To request corporate authorization for a sale or transfer of a Cool Girl Squad business, the following items must be submitted to the Company Compliance Department:
- A Sale/Transfer of Business Form properly completed, with the requisite signatures
- A copy of the Sales Agreement signed and dated by both Buyer and Seller
- An Independent Brand Designer Agreement completed and signed by the Buyer
- Any additional supporting documentation requested by the Company
- Any debt obligations that either Seller or Buyer may have with Cool Girl Squad must be satisfied prior to the
approval of the sale or transfer by the Company.
- An Independent Brand Designer who sells his or her business is not eligible to re-enroll as an Independent Brand Designer in any organization for twelve (12) full calendar months following the date of the sale except as otherwise expressly set forth in these Policies and Procedures.
- The Transfer/Sale will be approved or denied at the sole discretion of Cool Girl Squad .
9.6 Separating an Independent Brand Designer’s Cool Girl Squad Business
- Pending a divorce or dissolution of a partnership or other business entity, the parties must adopt one
of the following methods of operation:
- One of the parties may, with the written consent of the other(s), operate the Cool Girl Squad business whereby the relinquishing Spouse, shareholders, partners, members or trustees authorize the Company to deal directly and solely with the other Spouse, non-relinquishing shareholder, partner, member or trustee;
- The parties may continue to operate the Cool Girl Squad business jointly on a “business as usual” basis, whereupon all compensation paid by the Company will be paid in the name designated as the Independent Brand Designer or in the name of the entity to be divided, as the parties may independently agree between them. If no name is stipulated, Cool Girl Squad will pay compensation to the name on record and in such event, the Independent Brand Designer named on the account shall indemnify Cool Girl Squad from any claims from the other business owner(s) or the other Spouse with respect to such payment.
- The Company recognizes only one Downline organization and will issue only one commission check per Cool Girl Squad business per commission cycle. Under no circumstances will the Downline of an organization be divided, nor will Cool Girl Squad split commission and/or bonus checks.
- If a relinquishing Spouse, partner, or owner of the business has completely relinquished
(“Relinquishing Party”), in writing, all rights to the original Cool Girl Squad business, “it” may immediately thereafter re-enroll under the Sponsor and Placement of “it’s” choice. In such cases, however, the Relinquishing Party shall have no rights to, and shall not solicit, any Independent Brand Designer or active Customer in the former organization, and must develop a new business in the same manner as any other new Independent Brand Designer. An Independent Brand Designer in the Relinquishing Party’s former Downline who wishes to transfer to the Relinquishing Party’s new organization or to any other organization, must comply with the requirements in Section 12.5.
- Upon the death or incapacity of an Independent Brand Designer, the Independent Brand Designer’s corresponding business may be passed on to his or her legal successors in interest (successor). Whenever a Cool Girl Squad business is transferred by bill or other testamentary process, the successor acquires the right to collect all bonuses and commissions of the deceased Independent Brand Designer’s sales organization. The successor must:
- Complete and sign a new Independent Brand Designer Agreement
- Comply with the terms and provisions of the Independent Brand Designer Agreement; and
III. Meet all the qualifications for the last rank achieved by the former Independent Brand Designer.
- Commission checks of a Cool Girl Squad business transferred based on this section will be paid in a single check to the successor. The successor must provide the Company with an “address of record” to which all bonus and commission Payments will be sent. Payments will be based on the current performance of the business, not the highest rank or volume achieved.
- If the business is passed on to joint devisees (successors), they must form a business entity and acquire a Federal taxpayer identification number. Cool Girl Squad will issue all bonus and commission payments and one 1099 Miscellaneous Income Tax form to the managing business entity only.
- Appropriate legal documentation must be submitted to the Company Compliance Department to ensure the transfer is done properly. To affect a testamentary transfer of a Cool Girl Squad y Compliance Department:
- A certified copy of the death certificate; and
- A notarized copy of the will or other appropriate legal documentation establishing the successor’s right to the Cool Girl Squad business.
- To complete a transfer of the Cool Girl Squad business because of incapacity, the successor must provide the following to the Company Compliance Department:
- A notarized copy of an appointment as trustee
- A notarized copy of the trust document or other appropriate legal documentation establishing the trustee’s right to administer the Cool Girl Squad business; and
III. A completed Independent Brand Designer Agreement executed by the trustee.
- If the successor is already an existing Independent Brand Designer, the Company will allow such Independent Brand Designer to keep his or her own business plus the inherited business active for up to six (6) months. By the end of the 6-month period, the Independent Brand Designer must have compressed (if applicable), sold or otherwise transferred either the existing business or the inherited business.
- If the successor wishes to terminate the Cool Girl Squad business, “it” or it must submit a notarized statement stating the desire to do so, along with a certified copy of the death certificate, appointment as trustee, and/or any other appropriate legal documentation.
- Upon written request, Cool Girl Squad may grant a one (1) month bereavement waiver and pay out at the
last “paid as” rank.
9.8 Resignation/Voluntary Cancellation
- An Independent Brand Designer may immediately terminate his or her business by submitting a written notice or
email to the Company Compliance Department. The written notice must include the following:
- The Independent Brand Designer’s intent to resign;
- Date of resignation;
III. Cool Girl Squad Identification Number;
- Reason for resigning; and
- An Independent Brand Designer may not use resignation or voluntary cancellation as a way to immediately change Sponsor and Placement. Instead, the Independent Brand Designer who has voluntarily resigned is not eligible to reapply for a business or have any financial interest in a or any Cool Girl Squad business for six (6) months from the receipt of the written notice of resignation.
- Following any voluntary cancellation, an Independent Brand Designer:
- Shall have no right, title, claim or interest to any commission or bonus from the sales generated by the Independent Brand Designer’s former organization or any other payments in association with the Independent Brand Designer’s former independent business
- Effectively waives any and all claims to property rights or any interest in or to the Independent Brand Designer’s former downline organization
III. Shall receive commissions and bonuses only for the last full pay period in which “it” was active prior to cancellation, less any amounts withheld during an investigation preceding an involuntary cancellation, and less any other amounts owed to the Company.
9.9 Involuntary Termination
- The Company reserves the right to terminate an Independent Brand Designer’s Cool Girl Squad business for, but not limited to, the following reasons:
- Violation of any terms or conditions of the Independent Brand Designer Agreement
- Violation of any provision in these Policies and Procedures
- Violation of any provision in the Compensation Plan
- Violation of any applicable law, ordinance, or regulation regarding the Cool Girl Squad business
- Engaging in unethical business practices or violating standards of fair dealing; or
- Returning over $ 50 worth of products, services and/or sales tools for a refund within a twelve (12) month period.
- Cool Girl Squad will notify the Independent Brand Designer in writing at the last known address of the intent to terminate the Independent Brand Designer’s business and the reasons for termination. The Independent Brand Designer will then have seven (7) calendar days from the date of such notice to appeal the termination in writing. Cool Girl Squad must receive the Independent Brand Designer’s written appeal within seven (7) calendar days of the date of the termination letter. If the written appeal is not received within this time, the termination will be considered final.
- If the Independent Brand Designer does file a timely appeal of termination, the Company will review its decision, along with any other information it may deem relevant, reconsider any other appropriate action, and notify the Independent Brand Designer of its decision. The decision of the Company is then considered final and not subject to further review.
- If the termination is not rescinded, the termination will be effective as of the date of the original termination notices by the Company. The former Independent Brand Designer shall thereafter be prohibited from using the names, marks or signs, labels, stationery, advertising, or business material referring to or relating to any Cool Girl Squad products or services. The Company will notify the active Upline Sponsor of the termination, and the organization of the terminated Independent Brand Designer will “roll up” to the active Upline Sponsor on record.
- The Independent Brand Designer who is involuntarily terminated by the Company may not reapply for a business, either under the present name or any other name or entity, without the express written consent of an officer of Cool Girl Squad. In any event, such Independent Brand Designer may not re-apply for a business for twelve (12) months from the date of termination.
10.0 DISCIPLINARY SANCTIONS
10.1 Imposition of Disciplinary Action - Purpose
It is the spirit of Cool Girl Squad that integrity and fairness should pervade its sales force, thereby providing everyone with an equal opportunity for all Independent Brand Designers to build a successful business. Therefore, we reserve the right to impose disciplinary sanctions at any time, when We determine that an Independent Brand Designer has violated the Agreement, any of these Policies and Procedures, or the Compensation Plan as may be amended from time to time by the Company.
10.2 Consequences and Remedies of Breach
Disciplinary actions may include one or more of the following:
- Monitoring an Independent Brand Designer’s conduct over a specified period of time to assure compliance
- Issuance of a written warning or requiring the Independent Brand Designer to take immediate corrective action
- Imposition of a fine (which may be imposed immediately or withheld from future commission payments) or the withholding of commission payments (“Commission Hold”) until the matter causing the Commission Hold is resolved or until the Company receives adequate additional assurances from the Independent Brand Designer to ensure future compliance;
- Suspension from participation in Company or Independent Brand Designer-related events, rewards, or recognition
- Suspension of the Independent Brand Designer Agreement and your business for one or more pay periods
- Involuntary termination of the Independent Brand Designer Agreement and your business
- Any other measure which We deem feasible and appropriate to justly resolve injuries caused by the Independent Brand Designer’s violation or contractual breach, OR
- Legal proceedings for monetary or equitable relief.
11.0 DISPUTE RESOLUTION
If an Independent Brand Designer has a grievance or complaint against another Independent Brand Designer regarding any practice or conduct relating to their respective Cool Girl Squad businesses, the Independent Brand Designer is encouraged to resolve the issue directly with the other party. If an agreement cannot be reached, it must be reported directly to the Company Compliance Department as outlined below.
- The Compliance Department will be the final authority on settling such grievance or complaint and its written decision shall be final and binding on the Independent Brand Designers involved.
- Cool Girl Squad will confine its involvement to disputes regarding Cool Girl Squad business matters only. We will not decide issues that involve personality conflicts or unprofessional conduct by or between Independent Brand Designers outside the context of Company business. These issues go beyond the scope of the Company and may not be used to justify a Sponsor, placement change or transfer.
- Cool Girl Squad does not consider, enforce, or mediate third party agreements between Independent Brand Designers, nor does it provide names, funding, or advice for obtaining outside legal counsel.
Process for Grievances:
An Independent Brand Designer should submit an email directly to the Company Compliance Department. The letter shall set forth the details of the incident as follows:
- The nature of the violation and specific facts to support such allegations
- Dates and the number of occurrences
III. Persons involved; and
- Any other supporting documentation.
- Upon receipt of the written complaint, the Company will conduct a general investigation.
The Company will make a final decision and timely notify the Independent Brand Designers involved.
- Any controversy or claim arising out of or relating to the Agreement and/or these Policies and Procedures (or the breach thereof), your business or any other dispute between the Company and you, shall be settled by binding and confidential arbitration administered by the American Arbitration Association under its commercial arbitration rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Any such arbitration shall be held in Kannapolis, North Carolina. There shall be one arbitrator, who shall have expertise in business law transactions and who shall be knowledgeable in the direct selling industry, selected from a panel provided by the American Arbitration Association.
- The prevailing party in any such arbitration shall be entitled to receive from the losing party, all costs and expenses of arbitration, including reasonable attorney’s fees and filing fees. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to judgment in any court of competent jurisdiction.
- This agreement to arbitration shall survive any termination or expiration of the Agreement.
- Nothing in these Policies and Procedures shall prevent Cool Girl Squad from applying for or obtaining from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction, or other relief available to safeguard and protect the Company’s interests or its Confidential Information prior to, during or following the filing of an arbitration or other proceeding, or pending the rendition of a decision or award in connection with any arbitration or other proceeding.
- NO CLASSACTION, OR OTHER REPRESENTATIVE ACTION OR PRIVATE ATTORNEY GENERAL ACTION
OR JOINDER OR CONSOLIDATION OF ANY CLAIM WITH A CLAIM OF ANOTHER PERSON OR CLASS OF CLAIMANTS SHALL BE ALLOWABLE.
- These Policies and Procedures and any arbitration involving an Independent Brand Designer and the Company shall be governed by and construed in accordance with the laws of the state of North Carolina, without reference to its principles of conflict of laws.
In any case which arises from or relates to the wrongful termination of the Independent Brand Designer Agreement and/or an Independent Brand Designer’s Cool Girl Squad business, the Company and Independent Brand Designer agree that damages will be extremely difficult to ascertain. Therefore, the Company and Independent Brand Designer stipulate that if the involuntary termination of the Independent Brand Designer Agreement and/or loss of the Independent Brand Designer’s Cool Girl Squad business is proven and held to be wrongful under any theory of law, the Independent Brand Designer’s sole remedy shall be liquidated damages calculated as follows:
- For Independent Brand Designer’s at the “Paid As” rank of 25% or above (with the exception of paragraph II below), liquidated damages shall be in the amount of his/her gross compensation that “it” earned pursuant to the Cool Girl Squad Compensation Plan in the twenty-four (24) months immediately preceding the termination.
- For Independent Brand Designer’s at the “Paid As” rank of 40%, liquidated damages shall be in the amount of his/her gross compensation that “it” earned pursuant to the Cool Girl Squad Compensation Plan in the twenty-four (24) months immediately preceding the termination.
In any action arising from or relating to the Agreement, the Cool Girl Squad business, or the relationship between the Company and Independent Brand Designer, both parties waive all claims for incidental and/or consequential damages, even if the other party has been apprised of the likelihood of such damage. The Company and Independent Brand Designer further waive all claims to exemplary and punitive damages.
If any provision of these Policies and Procedures is found to be invalid, or unenforceable for any reason, only the invalid provision shall be severed. The remaining terms and provisions hereof shall remain in full force and shall be construed as if such invalid or unenforceable provision never had comprised a part of these Policies and Procedures.
Only an officer of Cool Girl Squad can, in writing, affect a waiver of these Policies and Procedures. The Company’s waiver of any breach by an Independent Brand Designer shall not affect Our rights with respect to any subsequent breach, nor shall it affect the rights or obligations of any other Independent Brand Designer.
The existence of any claim or cause of action of an Independent Brand Designer against the Company shall not constitute a defense to Our enforcement of any term or provision found in these Policies and Procedures.
11.6 Successors and Claims
The agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.
12.0 GOVERNING LAW
These Policies and Procedures shall be governed by and construed in accordance with the Laws of the State of North Carolina and the exclusive jurisdiction of the United States courts.