Embed Size (px)
Citation preview
STELLA & DOT FAMILY BRANDS
As an Independent Business Owner within the Stella & Dot Family Brands, you agree to the Stella & Dot
Family Brands Independent Business Owner Agreement (the “Business Owner Agreement”). By accepting
this agreement, you also accept and agree to the terms outlined within the following documents:
1) Stella & Dot Family Brands Policies & Procedures (the “Policies & Procedures”)
2) Compensation Plan for your specific Stella & Dot Family Brand (the “Compensation Plan”).
3) Stella & Dot Family Brands Leadership Addendum, applicable to those that promote to Star Business
Owner and up.
In this document, we use general terminology to refer to each brand collectively. “Stella & Dot” and “Stella &
Dot Family Brands” include Stella & Dot, KEEP Collective, and EVER. “Independent Business Owner” or
“Business Owner” includes Stella & Dot Stylists, and, in North America, KEEP Collective Designers and EVER
Specialists. “Sales Events” includes Stella & Dot Trunk Shows, and, in North America, KEEP Collective Socials
and EVER Events. Please note that the KEEP Collective and EVER brands are not currently available outside
of North America.
Stella & Dot Family Brands Policies & Procedures
Our amazing culture is one that sets us apart. The Stella & Dot Family Brands Policies & Procedures (the
“Policies & Procedures”) are designed to protect our culture and ensure that each Independent Business
Owner plays by the same rules. To that end, it is your responsibility to read and familiarize yourself with this
document. It will guide you in the operation of your Stella & Dot Family Brands business and help you uphold
the values and standards of our extraordinary community.
From time to time, it may be necessary to amend these agreements. You can always find the most recent
version in your Stylist Lounge.
Note that most of the policies below apply across all brands; however, in the event a policy varies by brand,
we will explicitly differentiate within the policy itself so you are never unclear about the policies for your
particular Stella & Dot Family Brand.
Practicing the Values of our Stella & Dot Family
We pride ourselves on professionalism, honesty and equality! With this in mind, we expect that you will
represent the Stella & Dot Family Brands at all times, by ensuring that you:
▪ Operate with integrity, ethics and professionalism. This includes maintaining a high standard of
professionalism and courtesy with customers, other Business Owners, Business Owner Support and
all other members of the Stella & Dot Family Brands Corporate Office (the “Head Office”);
▪ Act in good faith at all times;
STELLA & DOT FAMILY BRANDS
▪ Provide helpful customer service in the spirit of developing long-term customer relationships;
▪ Refrain from making negative or disparaging comments or gossiping about others, the Head Office, the
Compensation Plan, or our products. Provide direct feedback to your Mentor or the Head Office; public
disparagement only serves to undermine the confidence our community thrives on; and
▪ Abide by all Policies & Procedures, never looking for loopholes or to skirt the intent of the Business
Owner Agreement.
If you do not operate your business by the above values at all times, we will reach out to you and we may need
to end our relationship with you as a Stella & Dot Family Brands Independent Business Owner. Thank you in
advance for always operating within the Stella & Dot Family Brands spirit!
Corporate Website URLs
We often refer to the Corporate Website throughout the Policies & Procedures. Please note the official
Corporate Website URLs for:
Stella & Dot Family Brands: www.stelladotfamily.com
Stella & Dot U.S.: www.stelladot.com
Stella & Dot Canada: www.stelladot.com/sites/sdcanada
Stella & Dot France: www.stelladot.fr
Stella & Dot Germany: www.stelladot.de
Stella & Dot UK: www.stelladot.co.uk
Stella & Dot Ireland: www.stelladot.ie
Stella & Dot Europe: www.stelladot.eu
KEEP Collective: www.keep-collective.com
EVER: www.myeverskincare.com
For Questions and Support
If you have any questions about any part of the Stella & Dot Family Brands Independent Business Owner
Agreement, including the Policies & Procedures, you can discuss them with your Mentor or Upline Star or
Director. If neither is available, you are always welcome to contact your applicable Head Office Stylist
Relations team. See Appendix A for contact information by brand.
STELLA & DOT FAMILY BRANDS
Practicing the Values of our Stella & Dot Family ..... 1
Corporate Website URLs .......................................... 2
For Questions and Support ...................................... 2
SECTION I. GETTING STARTED AS AN INDEPENDENT
BUSINESS OWNER .................................................. 1
1.1 - Qualifications ................................................... 1
1.2 - Online Independent Business Owner
Agreement ............................................................... 1
1.3 – Independent Business Owner ID ..................... 1
1.4 - Calculation of Commissionable Earnings ......... 1
1.5 - Family Tree Structure ...................................... 2
1.6 - E-Marketing Suite and Personal Website
(PWS) ....................................................................... 2
1.7 - Independent Business Owner Discounts ......... 2
1.8 - Independent Contractor Status ....................... 3
1.9 - No Inventory Requirements ............................ 3
SECTION II. DOING BUSINESS .................................. 3
2.1 - Commissions Policy .......................................... 4
2.2 - Pay Portal and Independent Business Owner
Prepaid Debit Card ................................................... 4
2.3 – Personal Information and Orders ................... 5
2.4 - Sales Event Set up in the Lounge & Hostess
Rewards ................................................................... 6
2.5 - Independent Business Owners as Hostess ...... 6
2.6 - Independent Business Owner Substitution ..... 7
2.7 - Co-Hostess at Sales Events .............................. 7
2.8 - Mystery Hostesses at Sales Events .................. 7
2.9 - Independent Business Owner Sample Sales .... 8
2.10 - Timeframes for Sales Events .......................... 8
2.11 - Reassigning Orders to Qualify Sales Events ... 9
2.12 - Orders ............................................................ 9
2.13 - Bulk Orders ..................................................10
2.14 - Gift Cards* ...................................................10
2.15 – Independent Business Owner-to-Business
Owner Sales ...........................................................10
2.16 - Blanket Discounts ........................................11
2.17 - Bonus Buying ...............................................12
2.18 - Inventory Loading ........................................13
2.19 - Permanent Retail Displays/Pop-Up Shops ...13
2.20 - Military Bases/Posts .................................... 13
SECTION III. ADVANCING AS AN INDEPENDENT
BUSINESS OWNER ................................................. 14
3.1 - Pay Rank ........................................................ 14
3.2 - Career Rank ................................................... 14
3.3 - Corporate Leads ............................................ 14
3.5 - Training Events .............................................. 15
SECTION IV. BUILDING A TEAM .............................. 16
4.1 - Mentor Guidelines and Obligations .............. 16
4.2 - Minimum Leadership Support ....................... 16
4.3 - Building Teams in a Sister Brand and Referral
Rewards* ............................................................... 17
4.4 - Remote Sponsoring ....................................... 18
4.5 - Sponsoring/Mentorship Relationships .......... 18
4.6 - Associate Director Level Responsibilities ...... 19
4.7 – Director Level Responsibilities ...................... 20
4.8 – Senior Director Level Responsibilities........... 20
4.9 - Leadership Focus Policy ................................. 21
4.10 - Non-Acceptance of Leadership ................... 21
4.11 - Corporate Manual Assignments .................. 21
4.12 - Opportunity Events ..................................... 22
4.13 - Inadequate Support ..................................... 23
4.14 - Release of Team .......................................... 24
4.15 - Roll-Ups ....................................................... 24
4.16 - Compression ................................................ 26
4.17 - Cross-Sponsoring ......................................... 26
SECTION V. MARKETING YOUR BUSINESS .............. 26
5.1 General Compliance ........................................ 27
5.2 Promoting your Business ................................. 27
5.3 Unsolicited Communications ........................... 29
5.4 Marketing Materials and Restricted Use of
Stella & Dot Family Brands Trademarks ................ 30
5.5 Restricted Use of Third Party Trademarks ....... 31
5.6 Co-Mingling Marketing of Brands* .................. 32
5.7 Marketing and Naming: Personal Website
(PWS) ..................................................................... 32
5.8 Naming: Website URLs, Email Addresses and
Social Networking Accounts .................................. 32
Stella & Dot Family
ii
5.9 Business Owner to Business Owner Marketing
and Services Restrictions ....................................... 32
5.10 Catalogs and Flyers ........................................ 33
5.11 Phone Listing Policy ....................................... 33
5.12 Sales Through Other Internet Sites ................ 33
5.13 Sales Through Commenting on Competitor
Products Similar to Stella & Dot Family Brands ..... 34
5.14 Media Engagement ........................................ 34
5.15 Trade Shows/Expos/Booth Events ................. 34
SECTION VI. INCOME PROJECTIONS ...................... 35
SECTION VII. TAXES AND FINANCIAL RECORDS ...... 36
7.1 - Income Tax ..................................................... 36
7.2 - W-9 Changes* ................................................ 36
7.3 - Sales Tax / VAT ............................................... 36
7.4 - Other Exempt Sales* ..................................... 36
7.5 - Requests for Financial Records* .................... 37
SECTION VIII. DIRECTOR’S PERSONAL QUALIFYING
VOLUME (PQV) EXEMPTION PERIOD ..................... 37
SECTION IX. TERMINATION AND REACTIVATION ... 37
9.1 - Buyer’s Remorse ............................................ 38
9.2 - Voluntary Cancellation of Business Owner
Agreement ............................................................. 38
9.3 Inactivity Policy* .............................................. 38
9.4 - Deactivation ................................................... 38
The implications of being deactivated are the same
as those described in Section 9.6. ......................... 38
9.5 - Head Office Termination ............................... 38
9.6 - Effect of Termination ..................................... 39
9.7 - Terminated Business Owners’ Buy-Back Policy
............................................................................... 39
9.8 - Account Holds ................................................ 40
9.9 - Reactivation Policy ......................................... 40
SECTION X. GENERAL TERMS ................................ 41
10.1 - Legal Compliance ......................................... 42
10.2 - Ethical Conduct ............................................ 42
10.3 - Continued Permanent Residence ................ 42
10.3.1 - Multiple Independent Business Owner
Agreements ............................................................ 42
10.3.2 – Multiple Business Owner Agreements
within the Family of Brands ................................... 43
10.4 - Solicitation of Overseas Business and
International Sales ................................................. 43
10.5 - Annual Automatic Renewal of Business
Owner Agreement ................................................. 43
10.6 - E-Marketing Suite and/or Personal Website
(PWS) Automatic Renewal ..................................... 44
10.7 – Building Your Business Across Sister Brands
and Participation in Other Direct Selling Companies
............................................................................... 44
10.8.1 - Non-Solicitation ........................................ 45
10.8.2 - Non-Solicitation of Stella & Dot Employees
............................................................................... 46
10.8.3 - Conflicts .................................................... 46
10.9 - Acts of Third Parties .................................... 46
10.10 - Confidentiality Obligations ........................ 46
10.11 - Targeting the Sales Force of Other Direct
Selling Companies .................................................. 47
10.12 - Partnerships ............................................... 47
10.13 - Licenses* ................................................... 48
10.14 - Independent Status and Non Exclusive
Territories .............................................................. 48
10.15 - Bank Accounts ........................................... 48
10.16 - Third Party Consumers .............................. 48
10.17 - Customer Cancellation .............................. 48
10.18 - Proof of Liability Insurance ........................ 49
10.19 - Charity Requests ........................................ 49
10.20 – Charitable Commitments Responsibilities 49
10.21 - Stella & Dot Foundation ............................ 49
10.22 - Amendments ............................................. 50
10.23 - Grievances and Complaints ....................... 50
10.24 - Reporting Policy Violations ........................ 50
10.25 - Company Address information .................. 50
SECTION XI - DISPUTE PROCEEDINGS AND
RESOLUTION ......................................................... 50
11.1 - Sanctions for Breaching the Business Owner
Agreement ............................................................. 50
11.2 - Alternative Dispute Resolution.................... 51
SECTION XII – DOWNLINE LOSS, DOWNLINE
RESTORATION, AND ACCOUNT CANCELLATIONS .... 51
12.1 - Effects of Voluntary or Involuntary
Cancellation ........................................................... 51
Stella & Dot Family
iii
12.2 - Downline Restoration ..................................52
SECTION XIII. INTERNATIONAL .............................. 52
13.1 - International Sponsorship ...........................52
Appendix A ............................................................ 1
Contact Details by Brand ......................................... 1
Stella & Dot Family
1
SECTION I. GETTING STARTED AS AN INDEPENDENT BUSINESS OWNER
1.1 - Qualifications
You become a Stella & Dot Family Brands Independent Business Owner once your completed Business
Owner Agreement has been received and accepted by the Head Office. To be a Stella & Dot Family Brands
Independent Business Owner, you must:
▪ Be 18 years of age or older; and,
▪ Have a valid National Insurance (NI) Number or Personal Public Service (PPS) Number, depending on
the country in which you live; or,
▪ Have the right to work in the country in which you are signing up; and,
▪ Have a valid default Credit or Debit Card on file at all times; and,
▪ Be sponsored by a current Business Owner (except in cases where Head Office has approved a
Direct-to-Corporate relationship). If you do not have a specific Mentor that you’d like to be sponsored
by, not to worry! In such cases the Head Office Stylist Relations team will assign you to a Mentor with
a track record of success and coaching ability; and
▪ Visit the brand-specific Corporate Website and sign-up by submitting the online form which includes
the electronic acceptance of your Business Owner Agreement. You will also need to purchase a
Starter Kit.
As soon as your Business Owner Agreement is approved, you are ready to launch your business!
1.2 - Online Independent Business Owner Agreement
When you purchase your Starter Kit during the online sign-up process, you will be required to read and
accept the online Business Owner Agreement. The Business Owner Agreement defines the role and
responsibilities of a Business Owner. It is imperative for Business Owners to read and comply fully with the
Business Owner Agreement prior to signing-up! You will need to sign an agreement for each brand you
would like to represent (note that KEEP Collective and EVER only operate within the U.S. at this time).
1.3 – Independent Business Owner ID
Every Business Owner has a unique Business Owner ID – just like a fingerprint! You will be automatically
assigned a non-changeable ID. If you represent more than one brand, you will have a unique ID for each
brand.
1.4 - Calculation of Commissionable Earnings
All measures of qualifications are based on Personal Qualifying Volume (PQV) values rather than Retail Sales.
This is to create a simple, consistent qualification across countries and currencies and because some order
types, such as Charity related products or Corporate Referral Orders may yield a lower qualifying volume.
Stella & Dot Family
2
Please always refer to your PQV earned rather than your Retail Sales achieved. Similarly, commissions will
be paid based on Personal Retail Volume (PRV) which also reflects lower commissions earned on Charity
related products and Corporate Referral Orders.
In addition to the commissions and PQV earned from personal sales as described above, you will also earn
commissions on your team’s sales, if you have a team and are in compliance with all agreements. For more
information on this, please view the Compensation Plan, available in your Stylist Lounge.
1.5 - Family Tree Structure
We believe the best person to coach you in your business is someone who knows how to run the business
first-hand. This is why the Stella & Dot Family Brands model is based on a Family Tree team structure. You
sign up under, or are assigned, a Mentor who is required to provide coaching and guidance to you to help you
succeed and meet your business goals! The vast majority of your training and answers to your questions will
be readily available to you in your Lounge and in training materials, or provided to you from your Mentor
and her/his Mentor of Star Business Owner Career Rank and above. Other resources you are able to tap into
include anyone in your Upline on your Family Tree.
1.6 - E-Marketing Suite and Personal Website (PWS)
It is up to you whether or not you would like to use the E-Marketing Suite and/or its components, including
the Independent Business Owner Personal Website (“PWS”), where applicable by brand and country. We
recommend taking advantage of technology tools available to you, as they are significant assets to your
business. Available technology and prices vary by country and brand. Please see your Lounge for more
information and to sign-up!
1.7 - Independent Business Owner Discounts
Stella & Dot Family Brands Independent Business Owners receive generous personal discounts for products
for each brand that she/he represents. Discounts vary by brand and are outlined in detail in the Stylist
Lounge.
Global policies around personal Business Owner discounts are as follows:
▪ All Discounts are for YOU. You may buy gifts for friends and family using your discount but please
ensure that these gifts do not fall under ‘Bonus Buying’ (see Section 2.17 ‘Bonus Buying’);
▪ Your discounts are non-transferrable to either customers or other Independent Business Owners.
Items purchased in this manner will not be covered under our Refund, Returns, Exchanges and Delight
Guarantee Policies;
▪ When purchasing product using your discounts, the Credit Card used to purchase these items must
bear your name. This helps us ensure your account is not flagged for extending your Business Owner
discount to others;
▪ All discounts cannot be combined with Hostess Rewards to purchase product;
Stella & Dot Family
3
▪ All discounts may not apply to Business Supplies.
Stella & Dot:
▪ Sampling quantities are limited. Our goal is to provide inventory to your customers. Thus, during
sampling periods, we allocate a certain percentage of the inventory to sampling. If this threshold is
passed, certain items will be disabled for sampling at any time and without advanced warning. This is
to ensure we have stock to sell to customers; and
▪ The business model for Stella & Dot does not require Business Owners to maintain inventory for
customers. Therefore, we limit the number of items you can purchase in a Sample order to a maximum
quantity of one per item per Stella & Dot Stylist. Please see Section 2.18, ‘Inventory Loading,’ for further
details.
1.8 - Independent Contractor Status
As an Independent Business Owner, you are not an employee partner, distributor or joint venture partner of
Stella & Dot Family Brands; by that token, you are not entitled to receive any benefits from any Stella & Dot
company. Stella & Dot Family Brands shall not be required to make contributions to any payment required
under any employment insurance, Workers’ Compensation, pension or other coverage and policies. You are
fully responsible for paying all applicable income taxes, national insurance contributions, pay-related social
insurance, universal social charges, insurance premiums and other taxes, levies, premiums, license
requirement and fees related to your earnings and activities as an Independent Business Owner, as well as
keeping all records necessary to ensure the proper assessment and payment of any such amounts.
You agree that as an Independent Business Owner you are an independent contractor, and not an employee,
agent, partner, legal representative or franchisee of Stella & Dot Family Brands. Stella & Dot Family Brands
shall not be liable for any debts or liabilities whatsoever or howsoever incurred by your activities as an
Independent Business Owner. You shall be solely responsible for paying all expenses incurred by yourself,
including but not limited to travel, food, lodging, secretarial, office, long-distance telephone and other
expenses. You will have and maintain control of the manner and means of your performance. You will have
no power or authority to incur any debt, obligation or liability of any kind in the name of Stella & Dot, or on
Stella & Dot Family Brands’ behalf.
1.9 - No Inventory Requirements
As an Independent Business Owner, you are not required to purchase nor are you required to carry any
specific amount of inventory of any Stella & Dot Family Brands Product. Order transactions can be made
directly with Stella & Dot Family Brands on behalf of Independent Business Owners through the Stella & Dot
Family Brands website and/ or via an Independent Business Owner’s PWS.
SECTION II. DOING BUSINESS
Stella & Dot Family Brands are direct-to-consumer businesses, which means that your success is contingent
on positive personal relationships provided in person and online. Therefore, Stella & Dot Family Brands’
sales practices strive to steer customers away from one-time, impulse purchases and instead steer them
Stella & Dot Family
4
towards long-term sales relationships with you. The Stella & Dot Family Brands’ model emphasizes Sales
Events (Trunk Shows) that, in addition to being online shopping events, include an in-person experience at a
set time at a private home with a Sales Event Hostess.
This section will provide you with general guidance for you to consider in running your business and some
key policies pertaining to the purchase and sale of product.
2.1 - Commissions Policy
Your pay depends on your monthly Pay Rank and is comprised of commissions from your personal retail
sales and team commissions (where applicable). You can view your activity and track progress towards your
pay in the Reports area of your Lounge. For full Pay and Career Rank details, please refer to the
Compensation Plan, also available in your Lounge.
Here are a few additional important notes about Commission and Payout:
Non-Commissionable Starter Kit, orders placed using Sample Discounts and Business Supply items, Personal Orders
‘Special Sale’ Items Commission is earned on the sale price of these items, not the regular retail price
Overpayments If overpayments are made to you, they will be deducted from an existing balance or from future payments if the existing balance is insufficient.
Most of your questions pertaining to your Commissions Payout or Payout timeline can be answered by your
Mentor or found in the Compensation Plan located in your Lounge.
Commission payments are issued in YOUR name and cannot be paid otherwise. If you have any issues or
discrepancies with your commission report, please report them by end of the calendar month following the
month for which the commission was issued. For any questions pertaining to issues with your commission,
please do not hesitate to contact the Delight Team.
2.2 - Pay Portal and Independent Business Owner Prepaid Debit Card
▪ Questions around Pay Portal and your Debit Card are best addressed directly by Pay Portal. You’ll
find ‘Pay Portal FAQs’ in your Lounge. If you have questions beyond that, please contact Pay Portal
Customer Support either by email ([email protected]) or by phone
UK / IE
Customer Support Representatives are available at the following numbers at the following
times:
0800 096 4749: Monday – Friday from 9am - 6pm GMT (close 4pm on Fridays)
0845 528 0583: Monday – Friday from 2pm - 1am GMT
France
Customer Support Representatives are available at the following numbers at the following
Stella & Dot Family
5
times:
0800 911 536 (within France only): Monday-Friday from 10am - 7pm CET (close 4pm on
Fridays)
+1-604-484-0887: Monday - Friday from 4pm - 1am GMT
Germany
Customer Support Representatives are available at the following numbers at the following
times:
0800 18 11 651 (within Germany only): Monday from 12pm – 2pm, Wednesday from 5pm to
7pm, Friday from 10am - 12pm CET
+1-604-484-0887: Monday - Friday from 4pm - 1am GMT
You must request the Stella & Dot prepaid Debit card from within your Pay Portal account. There is a
one-off card cost of £5.95 / €7.95. Additionally, there a monthly card fee of £1.25 / € 1.50 if you have a
positive balance in any given month.
Your VISA Debit Card may take up to ten (10) business days to be delivered to you after you have
requested it. You must have a sufficient balance in your Pay Portal account to cover the cost of the card.
Your payout will not be loaded onto your VISA Debit Card from your Pay Portal account until: 1) you
activate it once you receive the card in the post and 2) you set-up your account to transfer funds to/from
your branded VISA Debit Card.
Please note, Pay Portal may charge a nominal monthly usage fee. Please refer to the Pay Portal site for
additional details.
2.3 – Personal Information and Orders
Handling Personal Information
As an Independent Business Owner, you will receive Personal Information from and about prospective
Business Owners, customers and other individuals. Keeping their Personal Information secure not only helps
to ensure your compliance with laws, but it also helps you to maintain current customers’ and potential
customers’ trust, which is an important factor in your success.
Personal Information is information that identifies, or permits you to contact, an individual. It includes a
customer’s, potential customer’s, or other individual’s name, address, email address, phone number, credit
card information, purchase history and other information associated with these details.
Do not share an individual’s Personal Information, unless you have their consent or a real business reason to
do so. Personal Information is a valuable asset. Do not communicate it to the general public or to anyone who
does not have a legitimate need for it. You are responsible for protecting Personal Information from
unauthorized access or disclosure.
Stella & Dot Family
6
Give the Customer Notice and Respect Their Choices
Customers may want to know why you are collecting their Personal Information and what you plan to do
with it. You should be clear about telling them what you are collecting and with whom you will share such
information. You should notify customers before or at the time you collect their Personal Information and
then be sure that you use and share Personal Information only in the ways you promised. Give a customer
the choice about how you communicate with them. For instance, find out if a customer wants to receive
promotions and other marketing messages from you and, if so, whether she/he would prefer to receive them
by e-mail, phone or another method of communication. Most importantly, make sure to respect the
customer’s choices.
Order Forms
You are responsible for ensuring the security and confidentiality of customers’ Personal Information you
obtain. Please make sure to never transcribe your customer’s credit card information and to shred the
detachable credit card information portion of the order form immediately after entering a customer order in
the Stylist Lounge.
Do not use or disclose the information on order forms for any purpose other than submitting an order or
confirming the information with the relevant customer. You are required to keep order forms (excluding the
detachable credit card information portion) for six months from order placement date, in case a customer or
Hostess has an order question. After the six (6)-month period, shred the form.
PWS Orders
When a customer orders through your PWS, the system will automatically add the customer to your contact
list for purposes of follow-up and remarketing. Please note that a customer’s contact information, excluding
credit card information, is stored electronically in your Lounge under ‘Contacts’. Hostesses will also
automatically be added to ‘Contacts’ when a Sales Event is booked.
2.4 - Sales Event Set up in the Lounge & Hostess Rewards
The success of your business depends on sharing the Hostess opportunity with others so that they can help
you acquire new customers beyond your immediate reach! Thus, it is important to develop a rapport with
other Hostesses and stay in touch with them. We recommend that you remind Hostesses to use their Hostess
Rewards as they approach expiration. Hostess Rewards expire 90 days after an order is placed, not from the
date a Sales Event closes. Expired Hostess Rewards will not be reinstated or transferred for any reason.
• Once an email address has been set for a Sales Event, the email address cannot be changed.
• Hostess rewards are associated with that original email address.
2.5 - Independent Business Owners as Hostess
In an effort to expand the Stella & Dot Family Brands experience to those outside of your social network, we
do not encourage you to personally host more than two Sales Events per year; however, we understand you
Stella & Dot Family
7
may occasionally host more. Should you do this, you may only collect Hostess Rewards from two Sales
Events between January 1 and December 31 each year, regardless of the number of Sales Events you host.
This includes the redemption of Hostess Rewards from family members who live in the same household as
you. Hostess Rewards earned above and beyond the two Sales Events for which you are eligible to collect
Hostess Rewards may be given away to customers at your discretion.
Please keep in mind that you cannot use your Business Owner Discounts combined with Hostess Rewards
and cannot use Hostess Rewards on your Business Owner account – you must maintain a separate Hostess
account.
2.6 - Independent Business Owner Substitution
As a Business Owner, you are responsible for conducting your own Sales Events and coaching your Hostesses
on how to successfully host a Sales Event. Accordingly, you may not ask another Business Owner to conduct
a Sales Event on your behalf. If you cannot attend a booked Sales Event, rather than cancel and disappoint
your Hostess, you may ask another Business Owner to stand in your place. In these circumstances, the Sales
Event must be re-booked and recorded on the replacing Business Owner’s account such that the associated
commissions and PQV are accurately reflected.
2.7 - Co-Hostess at Sales Events
If requested, you may designate a co-Hostess for a Sales Event. Please note that our systems only allow for
one Hostess, so only the main Hostess will earn Hostess Rewards. Decide together how to split the Rewards,
but please note, you are solely accountable for the logistics; the Head Office cannot step in to resolve any
disputes that may arise and can only assist with returns for the Hostess listed on the corresponding Sales
Event.
2.8 - Mystery Hostesses at Sales Events
When a Business Owner hosts a Sales Event without having or disclosing the Hostess prior to rewards being
earned, this is called a “Mystery Hostess”. While this is a fun way to rev-up excitement and a great marketing
tool, it can occasionally lead to confusion or concerns among guests. You are responsible for fully servicing
any such concerns among your customers. You may want to offer a giveaway prize to other Sales Event
attendees as part of your Mystery Hostess Sales Event. These giveaways are yours and not from Stella & Dot
Family Brands. To ensure your giveaway is successful, keep the following in mind:
▪ You cannot require participants to make a purchase to participate. If a purchase is one way to get an
entry, make sure that guests can also enter for free. You must ensure that everyone has an equal
chance to win regardless of how they enter;
▪ You should make clear that you, not Stella & Dot Family Brands, are the sponsor of the giveaway;
▪ You must objectively and fairly choose the winner (e.g., by a random drawing);
▪ You must clearly indicate the prize and its value;
Stella & Dot Family
8
▪ You must make clear to the winner that she/he is responsible for any taxes associated with the prize,
and you may need to take care of reporting obligations;
▪ If you are promoting your Mystery Hostess Sales Event promotion on a social media or third-party
website, make sure you are compliant with any third-Party terms, including guidelines specific to
sweepstakes or contests. For example, Facebook and Instagram have promotion guidelines; and
▪ If you will be publicizing the participants or winner (e.g., in photos online), make sure you have the
permission to do so.
▪ Giveaways are governed by many different laws in your country. We strongly recommend that you
contact appropriate legal counsel in your country of residence prior to offering a giveaway of any
kind.
As with all of your activities as a Business Owner, you are responsible for ensuring that your giveaway –
including your marketing messages and promotions –complies with all applicable laws, codes of conduct and
any third-party’s rights. This includes the laws, regulations and codes governing advertising, promotions,
competitions and prize-draws in your country.
2.9 - Independent Business Owner Sample Sales
We do not encourage you to sell Samples off your Sales Event table to customers, but at times you may need
to do so to best serve your customer. In the event you choose to sell your Sample to a customer, please place
your replacement order in your Lounge as specified below to prevent the order from being flagged for
‘Bonus Buying’ (see Section 2.17):
▪ Enter the name of your customer who purchased the sample.
▪ Enter your own shipping address.
▪ It is best that your customer pay with a Credit Card. In this case, please enter your customer’s billing
information. In the event the customer cannot pay by Credit Card and pays with cash or check, enter
your billing address.
Please ensure your customer fills out a physical order form for all Samples purchased, for all your Sales
Events. We may require this document for proof of purchase. Please remember to inform your customers
that our standard return policy and delight guarantee do not apply to items purchased off a Sales Event table.
Online Sample Sales (for example, on Facebook) are not in compliance with our policies and may violate our
‘Blanket Discount’ policy (see Section 2.16, ‘Blanket Discounts’). Please ensure that all Sample Sales are fully
in compliance with our ‘Blanket Discount’ policy. For more information on Sample Sales of discontinued
and/or retired products, please see Section 5.9, (‘Business Owner to Business Owner Marketing and Services
Restrictions’).
2.10 - Timeframes for Sales Events
Stella & Dot Family
9
We do not limit how far in advance a Sales Event may be booked because we understand plans change and
dates may need to be pushed out from the original Sales Event date. As such, Sales Event dates may be
changed up until the date and time the Sales Event occurs. A Sales Event cannot be moved once a sales order
has been placed against it.
All Sales Events will automatically close in a specified number of days after the Sales Event is held (e.g. 14
days for Stella & Dot Trunk Shows). Orders applying Hostess Rewards may be placed at any time once
rewards have been earned and doing so will not close the Sales Event. Hostesses can continue to earn
rewards for outside orders as long as the Sales Event remains open, even if the Hostess has already placed an
order using the initial rewards earned.
Sales Events are expected to be actual and genuine events; to ensure correct alignment of customer orders to
a Sales Event, orders will be accepted a maximum of sixty (60) days prior to any scheduled Sales Event.
Creation of fraudulent Sales Events for the purpose of collecting Hostess Rewards on orders that are truly
outside orders constitutes Bonus Buying and Home Office may take additional actions, including but not
limited to: claiming back all Hostess Rewards earned from that Sales Event, Pay Rank/Career Rank
adjustments if these were earned because of a false Sales Event, account suspension, and possible
termination of your Business Owner Agreement.
At times, it is necessary to move a sales order from one Sales Event to another. Only genuine customer
errors will be considered acceptable reasons for moving sales orders. Please forward your request to the
Delight Center along with supporting confirmation of the error from the customer.
2.11 - Reassigning Orders to Qualify Sales Events
It is a direct violation of the ‘Bonus Buying’ policy in the Policies & Procedures to place non-Sales Event
orders or reassign Sales Event orders to an existing or future Sales Event in order to qualify for rewards,
contests and promotions. This includes adding event orders or manipulating Sales Event orders in an effort
to qualify Sales Events or to earn rewards.
2.12 - Orders
In order to deliver the customer satisfaction that comes with the speedy arrival of our items, you are
required to use your best efforts to fully service your customers to delight as follows:
▪ Process customer orders within 24 hours of customer payment, provide follow-up services as needed
and assist your customers with returns and product questions. Orders should not be held for your
benefit, such as for incentive programs or to count towards next month’s commission. Any out-of-
stock items (unless discontinued) cannot be ordered until they are back in stock. Orders split
because of items being out-of-stock will not be subsidized for their second shipping charge where
applicable.
▪ Customer orders do require a valid email address; please do not create a false email address or use
your own email address for customer orders. If a customer asks to not receive marketing emails, you
can manage your customer’s email preferences within your Lounge; and
Stella & Dot Family
10
▪ In order to best service your customers, we offer self-service tools, such as the ability to process
Customer Returns, to Business Owners. Where available, Business Owners should provide this
service to their customers themselves rather than requesting assistance from the Delight Centre.
Regardless of how a Return is processed, all products returned must be in resalable condition,
unworn and in their original packaging. We also take the quality of our products very seriously and
we want you and your customers to be thrilled with each and every piece you receive! Please visit the
Stella & Dot website’s ‘Delight Guarantee’ section for more information on the Refunds, Exchanges,
Returns and Delight Guarantee policies.
▪ In the event a submitted order has not been processed on your applicable Stella & Dot Family Brand
website, deeming it a “failed order,” please be sure to report it to the Delight Centre within seventy-
two (72) hours of original submission. All requests to correct failed orders must be submitted within
the same month the order was placed, otherwise it will not be eligible to count toward that month’s
commissions, promotions, or incentives. The order will instead be credited to the month in with it
was reported for correction.
2.13 - Bulk Orders
We recognize that there may be special situations in which you or your customers may need to order more
than 50 of the same item. This could be for either charity or other events – and we are more than happy to
help make this happen. For bulk orders, please reach out to Stylist Relations for approval. The Stylist
Relations team will review each request on a case-by-case basis and make a decision contingent on inventory
and the product requested. Approval also ensures your account can be cleared should it be flagged for
‘Inventory Loading’.
Your bulk purchase may not qualify for existing contest or promotions during that time, such as Glam
Getaway and other incentives.
We do not offer discounts, waive shipping costs or accept returns on ‘Bulk Orders’. Please make sure to
communicate this with your customers prior to completing their order. If you would like, you may offer your
customer a discount or promotion on a ‘Bulk Order’ from your personal commissions. This is an agreement
between you and your customer and we are not responsible for such agreements.
To ensure that all Business Owners have equal opportunity to sample new products, ‘Bulk Orders’ for newly
released products within 30 days of product release may not be approved.
2.14 - Gift Cards*
*Stella & Dot Gift cards are not available in Europe at this time.
2.15 – Independent Business Owner-to-Business Owner Sales
In general, we do not permit sales of Stella & Dot products to other Business Owners, as each Business
Owner has an equal opportunity to purchase products with the same discount.
Stella & Dot Family
11
Stella & Dot Family Brands does not take any responsibility for any resale transactions. The relevant
Business Owners are responsible for ensuring compliance with applicable laws, rules and regulations when
engaging in such transactions. No adjustments of volume or commissions will be made by us on these types
of sales, and Business Owner-to-Business Owner sales are not covered by our Delight Guarantee policy.
This policy includes the purchasing of samples from another current or previous Business Owner. The
proactive sale of Stella & Dot Family samples or display items from one Business Owner to another is
prohibited online or offline. However, if a Business Owner has a customer who is looking for a discontinued
item that the Business Owner doesn’t have, a Business Owner may purchase the sample from another
Business Owner at retail purchase price to then sell to her/his customer. The selling Business Owner must
make clear to the customer that the product being purchased is a used product and is not covered by our
Delight Guarantee policy.
You must not actively solicit sales of your sample items. If another Business Owner happens to enquire about
the purchase of a discontinued Stella & Dot Family Brands Product for a customer, any discussions of a sale
transaction must be conducted privately. In addition, you must communicate with your customers that items
purchased in this manner are not covered under our returns or Delight Guarantee policies.
2.16 - Blanket Discounts
In order to provide a level playing field for all Business Owners, blanket discount offers are not permitted at
Sales Events, through your PWS, or other marketing channels. This includes discounts such as “25% off
everything at my Sales Event”, “Place an online order today and receive 15% off”, or “Free shipping on all
orders”. Any other offer permutations that serve to undercut the retail price of Stella & Dot Family Brands
products are restricted. However, you may offer occasional, specific and time-limited incentives, which must:
▪ Be offered to a closed, specific group of individuals (such as a club, not an open invite to anyone who
can view your Facebook profile, for example). The size of the closed group should align with the size
of an average Sales Event invitation list;
▪ Run for no more than three consecutive days;
▪ Occur no more than one time per calendar quarter.
Additionally, you may not offer discounts on any new or current line products. If you do need to sell 1-2
current line samples because they did not resonate with your customers or due to wear, you may not
promote those items in any online websites or forums and/or marketing vehicles.
To help incentivize customers to host Sales Events, you may offer a retired Stella & Dot Family Brand item to
those who book a future Sales Event with you. You may not advertise this on a public social media forum or
third-party sites, as this incentive is meant to be a personal ‘thank you’ between you and a potential hostess.
As long as these guidelines are followed, you may personally incur the cost of the specific promotion for your
customers, the way you see best fit. Please note that your promotional discount should not contribute to
earning the minimum PQV in order to qualify or promote as this could be considered ‘Bonus Buying’.
Stella & Dot Family
12
2.17 - Bonus Buying
Your success as a Business Owner depends upon your personal sales to customers. It is unacceptable to
personally purchase products to qualify for compensation levels or incentive programs. This unethical,
prohibited practice is referred to as ‘Bonus Buying’ and is taken very seriously, and may result in immediate
termination of your Business Owner Agreement. You should think of Bonus Buying as buying your way into a
promotion or compensation level, rather than selling and earning a promotion or compensation level.
‘Bonus Buying’ includes, but is not limited to, the following:
1. The enrolment of:
a. Individuals into a Business Owner Agreement without their knowledge;
b. Non-existent persons as Business Owners (“phantoms”); or
c. A Business Owner under a different account or with an alias name.
2. The unauthorized use of a credit card or use of a fraudulent credit card.
3. Subsidizing the entire or partial cost of a customer purchase or new Business Owner Starter Kit purchase
to count towards your volume or to add a new Business Owner to your team. This includes offering a
‘Blanket Discount’ or rebate on the purchase of products.
4. The purchase of product, either through your account or a Downline Business Owner’s account to:
a. Qualify for contests, promotions, personal sales requirement for coaching commissions or Pay
Rank;
b. Avoid Compression;
c. Increase sales or Hostess Rewards; or
d. Qualify a Sales Event or any other incentive-driven purpose via your purchase, as a Business
Owner, of an item from your own Sales Event, PWS or account or the purchase of an item from a
Sales Event, PWS or account of another Business Owner on the same Family Tree.
5. The practice of ‘Inventory Loading’, or encouraging others to ‘Inventory Load.’
6. Requiring a customer to purchase a product at a specific time in order to meet certain requirements.
7. Reassigning non-Sales Event orders to Sales Events, or Sales Event orders from one Sales Event to a
different Sales Event, for the purpose of increasing sales or Hostess Rewards, or qualifying a Sales Event
or any other incentive-driven purpose.
8. A Business Owner may not host a Sales Event for another Business Owner within the same Brand.
Additionally, while you’re welcome to place personal purchases for team incentives, these volume purchases
should not be the tipping point to qualify for a Pay Rank or Incentive. If you would not have qualified without
Stella & Dot Family
13
that order, the order will be deducted from your total sales and your Pay Rank or Incentive earning will be
adjusted accordingly.
2.18 - Inventory Loading
Start-up capital can be one of the biggest barriers to starting a business. The Sales Event business model is
structured in a way that this barrier is alleviated and a level, affordable playing field is available to all
Business Owners. Through this model, you can conduct successful business with no inventory other than
your Samples. You are encouraged to leverage your business with any technology available within your
brand, such as ‘Dottie’ (the Stella & Dot iPad app. Note, this may not be available in all countries), your PWS
and other scalable resources to promote your business. You may not maintain excessive inventory or
encourage other Business Owners to do so. This is referred to as “Inventory Loading”.
You may only purchase and maintain one unit of any item at any given time. If for any reason you feel that
you would like to preserve a personal item for your own use, you may purchase one additional unit of that
item for these purposes only.
2.19 - Permanent Retail Displays/Pop-Up Shops
Similar to inventory purchasing, the cost of maintaining retail space is prohibitive to many potential
Independent Business Owners. Independent Business Owners are not allowed to set-up a permanent retail
display and/or sell products in a retail establishment. Products are intended to be sold at in-home Sales
Events or on a Stella & Dot Family Brands PWS. A retail location includes, but is not limited to, mall booths,
boutiques, hair salons, grocery stores, flea markets, restaurants and other permanent establishments.
You may conduct a Sales Event at the same retail location once every three months in a calendar year.
Hostesses may rent space for Sales Events if need be; however, in order to prevent the appearance of such a
space as being a retail establishment, the Business Owner and/or Hostess may not store product in the
location. The product must be stored in either the Business Owner or Hostess’ home.
2.20 - Military Bases/Posts
Domestic
We currently support shipping both product and business supplies to domestic military bases. Prior to
joining a Stella & Dot Family Brand, if you are posted to domestic bases, please enquire with your base
regarding whether a business license is required.
Overseas
In the UK, we currently support shipping product to worldwide British Forces Post Offices (BFPO) addresses.
Prior to joining Stella & Dot, prospective Stylists posted to military bases should check with their base
commander to make sure that they are permitted to operate a home based business and/or use the BFPO
shipping address within the Ministry of Defence guidelines. Please note that we are unable to offer our
standard returns service at overseas military bases, but advise to contact Delight Centre who will be happy
Stella & Dot Family
14
to help. More information on BFPO can be found here: https://www.gov.uk/british-forces-post-office-
services
SECTION III. ADVANCING AS AN INDEPENDENT BUSINESS OWNER
As an Independent Business Owner, you are ultimately in charge of running your own business and deciding
whether to take advantage of various opportunities that are offered. We want you to have the opportunity to
advance your business by receiving the training, support and pay that matches your goals, efforts and
results. This section of the Policies & Procedures will describe the importance of and difference between Pay
and Career Ranks, how they relate to your business and the different programs we offer to help support you
in further growing your business by building a team. Remember your best support system is your Mentor
and the full gamut of support you receive from all those in your Family Tree.
3.1 - Pay Rank
We believe in rewarding the hard work and efforts of both you and your team. Your Pay Rank resets at the
beginning of each month and is determined by your Retail Sales, PQV, and your sponsorship activity, as well
as your team’s sales, PQV, and sponsorship activity over the course of each month. Your monthly Pay Rank
determines what percentage of coaching commissions you earn from your team’s sales. The Pay Rank
formula is detailed in the Compensation Plan, found in your Lounge. You should also make yourself familiar
with all reports available in your Lounge to track your Pay Rank throughout the month.
Please remember, the Compensation Plan does not reward Independent Business Owners for purchasing
Products or for merely recruiting others. The rewards and commissions earned under the Compensation
Plan are based on sales to customers. All references to “recruitment” and “sponsoring” in the Agreement are
simply descriptive of the proposed method of building a Downline organization under the Compensation
Plan. Personally recruiting Independent Business Owners to a Stella & Dot Family Brand is the method of
building a personal Downline organisation.
3.2 - Career Rank
Your Career Rank is the highest Pay Rank you have earned within the previous six months. When you
promote to a new Career Rank, you maintain that Career Rank for six months. At the end of the six month
period, if you have not earned that Pay Rank again, your Career Rank will change to reflect the highest Pay
Rank you achieved within the last six months. Your Career Rank establishes the title you can use when
publically announcing yourself as a Stella & Dot Family Brands Independent Business Owner and determines
which events and meetings you are eligible to attend and when you are eligible to sample product, among
other things. Please remember that if your Career Rank changes, you must change your title in print, online
and all communication materials within 15 days.
3.3 - Corporate Leads
Leads refer to customers or non-customers who visit any of our Corporate Websites and request more
information about a Stella & Dot Family Brand, typically on one or more of the following:
▪ Receiving a copy of the season’s Look Book/Marketing Materials;
Stella & Dot Family
15
▪ Hosting a Sales Event; and
▪ Learning more about how to launch a Stella & Dot Family Brand business.
We want to ensure each Lead has the best local, in-brand experience possible. As such, if the Lead has only
requested to either receive a copy of the Look Book or host a Sales Event, we will connect the Lead to the
nearest Business Owner who Qualified the month prior.
If the Lead is interested in learning more about becoming a Business Owner, we use the same requirements
and qualifications as outlined in Section 4.11, ‘Corporate Manual Assignments’, to connect the Lead with a
seasoned Leader in order to successfully launch a business as a new Business Owner.3.4 - Corporate Referral
Orders
Corporate Referral Orders refer to customer orders placed on one of our Corporate Websites when the
customer has not indicated a particular Business Owner. These orders are passed along to the nearest
Business Owner who has Qualified the month prior as a gift from us. ‘Nearest’ will be based on the order’s
billing address. Thus, if someone in London purchased a gift and sent it to someone in Manchester, the
referral would be based on the London address. To receive Corporate Referrals, you must be subscribed to
the E-Marketing Suite.
These referrals should not be expected; successful businesses are not built upon referral orders. PQV
and Commission amounts earned on these types of orders are different from those earned by orders directly
placed on your PWS or at Sales Events. For these orders, an ‘Order Confirmation’ will be emailed to you,
including (if the customer has opted to share their details with a Stylist) all the necessary customer contact
information needed to follow-up, ensure a delightful experience and hopefully make this customer your loyal
customer, Hostess or even future Downline Business Owner! If the customer has opted not to share their
details, you will receive notification of the order but no contact details.
3.5 - Training Events
The Head Office and Field Leaders offer events throughout the year including local meetups, regional
trainings and National Sales Conferences. We recommend you attend as many of these meetings as possible.
In fact, depending on your Career Rank you may be required to attend certain events in order to maintain
your Career Rank. These events are meant to provide you with the training needed to advance your business
and to learn more about new collections, new incentive programs and general business updates! They are
fun and a great way to connect with the Stella & Dot Family Brands community. You can learn more about
these events in your Lounge.
If you choose to bring personal artefacts or samples to an event please take care to secure your personal
artefacts or samples, as we are not responsible for any missing or stolen items.
Stella & Dot Family Brands will provide accommodations for the hearing impaired at Head Office led events
only upon direct request. To request accommodations, you must submit your request to your brand’s events
team via email no less than 30 days in advance of the event.
Stella & Dot Family
16
SECTION IV. BUILDING A TEAM
One of the key elements of the Business Owner’s business is the ability to build a team. Building a team
empowers you to lead by example and coach other Business Owners on skill sets you have acquired in the
business. One of the many benefits of building a team is earning coaching commissions for the time and
effort you spend in coaching each of them to success in their business.
4.1 - Mentor Guidelines and Obligations
As a Business Owner, you may sponsor other Business Owners and build a team in any Stella & Dot Family
where you are currently enrolled – this is a fantastic way to earn extra income and become a Leader! When
you become a Mentor and build a team, you agree to all sponsorship obligations and Adequate Leadership
Policies outlined below. Your own Mentor will partner with you to help you build and develop your team.
There are also a variety of existing tools to help make training on coaching simple and effective. These tools
include the Compensation Plan, training in your Lounge, and any training materials that may come in your
applicable Starter Kit.
4.2 - Minimum Leadership Support
As a Mentor, you choose to build a team and must provide a minimum level of support to the Business
Owners on your Downline in order to maintain your Sponsorship status. As a policy, below are some of the
minimum leadership support requirements. To provide a level of Minimum Leadership Support, you must
actively practice the Stella & Dot Family Brands Values in addition to the following:
Lead by Example
▪ Exemplify the cornerstone of leadership by maintaining an active and consistent in-home Sales Event
schedule. The very minimum requires that you have sold the minimum PQV to be a Qualified Business
Owner at least once every rolling four (4)-month period to avoid ‘Compression.
▪ Show consistent engagement in your business. If you are exhibiting patterns of engagement and
disengagement in your business this may put you at risk for keeping your team. If your sales patterns
suggest you are only qualifying often enough to avoid losing your team by ‘Compression’, your Stylist
Relations team will reach out to you to discuss these patterns and the best options for your team.
▪ At the level of Star Business Owner and up, follow the requirements of Section 4.9, Leadership Focus, to
ensure focused leadership.
New Business Owner Training
▪ Conduct training by phone or in-person within seven days of new Business Owner sign-up, following
the New Business Owner Training available in your Lounge. You must offer several time slots and be
prepared for the training session in order to provide the new Business Owner with the utmost training
experience.
Coaching and Guidance
Stella & Dot Family
17
▪ Actively engage in mentoring your Downline Business Owners and assist them in achieving their goals;
▪ Return phone calls or e-mails within three business days unless you have pre-notified your Downline
that you will be unavailable for a short vacation period of no greater than two weeks.
▪ Keep friendly and professional relationships with the Stella & Dot Family Brands community at large.
Disparaging remarks and negative behaviour about anyone within the Stella & Dot Family community
is not in line with our code of conduct.
▪ Keep a positive presence within social media and in all other channels. All concerns around product
quality and policies should be handled directly with Head Office and not in a public forum, including
social media.
Training
▪ Attend all meetings and trainings unless you called more than 24 business hours in advance to
reschedule or cancel.
▪ Communicate proactively, on a monthly basis by email, phone or in-person meetings, to your Downline
to discuss business goals and progress as well as offer encouragement and kudos.
▪ Disseminate Head Office information to your Downline in a timely manner.
Kudos and Recognition
▪ Regularly recognize your Downline team via kudos for efforts and achievements through personal
notes, phone calls, team newsletters or forum postings.
▪ Keep open and regular communications with your own Mentor so as to not cut off additional coaching
support for your Downline team. Your Upline leadership team should feel comfortable to freely
communicate with your team members in all forums.
If, under any circumstances, the Head Office determines, at its sole discretion, that adequate minimum
leadership responsibilities are not being met, we reserve the right to roll up your team. It is our goal to
ensure that all team members are getting adequate leadership and support to succeed in their businesses –
and this should be your ultimate goal as a Mentor as well!
Head Office also reserves the right to monitor the minimum leadership activity of Leaders of large teams to
ensure the teams are being fully supported by an active and engaged Leader. In the rare event that a Leader
is consistently not meeting her/his personal activity obligations, Head Office reserves the right to step in and
evaluate a more supportive reporting structure for some or all of the Downline team.
4.3 - Building Teams in a Sister Brand and Referral Rewards*
* Not applicable in E.U. At this time, only US Business Owners are able to build teams in a Sister Brand and
earn Referral Rewards.
Stella & Dot Family
18
4.4 - Remote Sponsoring
When sponsoring from a distance or across borders, you, as a Mentor, must still provide the same level of
training, support, and recognition to your remote team members as you do for local team members. Notes,
handouts, videos and Skype conferences during team meetings are effective ways to include remote Business
Owners in place of in-person local training and/or meetings. The Mentor must also:
▪ Meet ‘Minimum Leadership Support’ Requirements;
▪ Remote Downlines who live 50 miles or more away from you should be supported by phone or
connected with a local Business Owner who may provide coaching around Sales Event Observation. We
highly encourage you to arrange for your remote Downline Business Owners to connect with other
Business Owners in their community in order to receive local community support. Where applicable,
Mentors must ensure there are no language barriers between her/himself and her/his Downline, and
that she/he is accommodating of time difference considerations;
▪ The Head Office reserves the right to create a local Leader reassignment instead of a direct roll up for
Business Owners that have been discouraged by having an ineffective relationship with a remote
Mentor. When possible, this will be done within a Family Tree, however, when not possible, this will be
done to retain and promote the success of the individual Business Owner requesting local
reassignment;
4.5 - Sponsoring/Mentorship Relationships
Personally sponsoring new Independent Business Owners is the foundation of leadership because it
reinforces the activity that leads to a consistent, sustainable and strong business - introducing new people to
the Stella & Dot Family Brands Independent Business Owner opportunity. Please note, it is our expectation
that when you introduce someone to the opportunity, you bring her/him into your direct line for
mentorship. We do not support “stacking” teams by suggesting or requiring a new Business Owner to join
the team of a Business Owner on your Downline team for the purpose of promoting that Downline or
yourself.
“Personally Sponsored Independent Business Owners” are first-line Business Owners who specifically
entered your name/ ID number when they enrolled. This can mean either:
▪ You have personally sponsored organically; or
▪ You have personally sponsored after receiving a Head Office Lead but not through the Corporate
Manual Assignment process (i.e., you were assigned the Lead before she/he enrolled).
If you have Personally Sponsored Independent Business Owners on your first line (as noted above), you may
enjoy the full benefits of our Compensation Plan including coaching commissions and qualifications to
promote and maintain Pay Rank, based on Qualified Legs.
We do recognize the time and effort required to mentor all new Independent Business Owners through
Jumpstart and onto success, and therefore those assigned to you via the Corporate Manual Assignments
Stella & Dot Family
19
process (Section 4.11) within their first month of enrolment will count towards all components of the
Compensation Plan.
Additionally, because you as a Mentor qualify by coaching all lines of your family tree, in the event an
Independent Business Owner rolls up to your first line for any reason, she/he will also count towards the full
benefits of our Compensation Plan as per clause 4.16.There is another type of first-line Business Owners:
Adopted Business Owners:
o Occasionally, it may be necessary for Head Office to join some direct-to-corporate teams
together, e.g. to re-assign a Business Owner to an entirely new Upline leader (i.e., not
someone who was previously a member of her Upline Leadership Team). A Business Owner
who is re-assigned to a Business Owner’s 1st line at any time after her first month of
enrolment in the brand will be considered to be an Adopted Business Owner.
Adopted Independent Business Owners are a wonderful addition to your team and count toward your GQV
and your coaching commissions! However, these Business Owners are familiar with the Stella & Dot Family
Brands and do not require the same start-up coaching as a new Business Owner. In addition, because
Sponsoring new is such a fundamental activity to the success of your business, Adopted Business Owners
will not count towards your Team Structure (Qualified or Titled Legs) for Pay Rank or Promotions for the
first twelve months they are on your team. After twelve months, they will count towards the full benefits of
the Compensation Plan.
4.6 - Associate Director Level Responsibilities
By achieving and accepting the Associate Director Business Owner Pay Rank, you will be required to fulfil all
the qualifications listed below. Should you choose not to accept these responsibilities, you must inform your
applicable Stylist Relations team via email so they may partner with you to transition your team as further
described in the Non-Acceptance of Leadership policy, which also provides 11 information about exceptions
to this rule.
The minimum PQV requirement as set forth in the Compensation Plan for all Leaders must be
derived from Sales Events that are held in Business Owner’s country of residence.
In the event you will be absent from the active operation or management of your independent
Stella & Dot Family Brands business for a period of time in excess of fourteen (14) days, you must
provide at least thirty (30) days’ prior notice to team members (Independent Business Owners) in the
first four (4) Lines of your team and to Stella & Dot. In no event should you be absent from the active
operation or management of your independent Stella & Dot Family Brands business for a period of
time that exceeds ninety (90) days. You agree that you will not attempt to circumvent this requirement
by attempting to operate you Stella & Dot Family Brands business via a third party.
Make every reasonable effort to hold monthly open team meetings, or support existing local
meetings that are open to all Independent Business Owners, regardless of whether they are on you
team. You agree to plan, coordinate and conduct these meetings in accordance with the Home Office
guidelines.
Stella & Dot Family
20
Make every reasonable effort to participate in all weekly Leadership calls conducted by Stella & Dot
or by your immediate Upline Leader and to disseminate relevant information obtained from such
participation to your team.
Offer all Downline Independent Business Owners for whom you are the closest Star Pay Level or
above the opportunity for coaching to build their business. If the Downline Independent Business
Owner declines the offer, you will subsequently provide coaching if later requested by such Downline
Independent Business Owner.
Be available to respond to questions or enquiries from team members, and strive to respond to all
such questions or enquiries within forty-eight (48) hours or provide team members with prior notice
of an extended absence as described above.
Make every reasonable effort to attend Stella & Dot Family Brands company-wide events, such as
Stella & Dot’s annual conference “Hoopla.” In the event you are not able to attend, you should inform
the Field Relations team and ensure other arrangements have been made for your team.
Make every reasonable effort to plan, hold and conduct one (1) Meet Stella & Dot Family Brand
Opportunity Session (as described in the Stella & Dot Family Brands Leadership Guide) per calendar
quarter in accordance with the Policies & Procedures. Such events should be held in locations open to
the public (e.g. restaurants, hotel conference centres).
Attend applicable Stella & Dot Family Brands company sales events, such as Hoopla. In the event
you are not able to attend, you should inform your Field Relations team and ensure other arrangement
have been made for your team.
In addition, you are invited and encouraged to attend applicable Leadership Retreat.
4.7 – Director Level Responsibilities
In addition to the aforementioned duties, Director or above responsibilities include, but are not limited to:
▪ Attending brand-specific Leadership Retreat; and
▪ Holding monthly All-Business Owner meet-ups, or support existing local meetings. Planning, holding
and conducting at least three Opportunity Events per calendar quarter.
4.8 – Senior Director Level Responsibilities
If you advance to the Senior Director level or above, in addition to the aforementioned duties, you agree to
the following additional duties during the term:
▪ Make every reasonable effort to work with other Senior Directors or above in your region and the
Stella & Dot Home Office to arrange coordinate and conduct regional team meetings. The frequency
and location of such meetings shall be determined by you, your regional Senior Directors and the
Home Office.
Stella & Dot Family
21
4.9 - Leadership Focus Policy
Business Owners who have achieved the Associate Director Level Career Rank are given increased access to
Stella & Dot Family Brands confidential information and Business Owners, as well as increased coaching
commissions and other Associate Director level rewards. In exchange, it is Stella & Dot Family Brands’ policy
that a Business Owner holding the Career Rank of Associate Director or above may not build teams in
another direct selling business outside or within the Stella & Dot Family of Brands, either directly or via their
spouse living at the same address.
If you hold team(s) with other direct selling companies and do not wish to give up your team(s), you must
inform Stylist Relations, who will transition your Stella & Dot Family Brands team to the Next Qualified
Leader, as further described in the Non-Acceptance of Leadership policy.
4.10 - Non-Acceptance of Leadership
We understand that taking on the additional responsibilities of an Associate Director Career Rank Level or
above may not align with your personal career goals. As such, if you feel that being an Associate Director or
above is not for you at the time of a promotion, you may work with your Stylist Relations team to reduce
your team size through rollups to maintain a lower Career Rank. Stylist Relations will roll-up team members
to the Next Qualified Leader. Alternatively, should you wish to lead your full team and believe an exception
should be made because a pre-existing business was in place before you joined Stella & Dot Family Brands
and you have demonstrated that participation in a pre-existing direct selling business does not co-mingle
with your Stella & Dot Family Brands business or impact your team morale, coaching and performance,
please submit your request to your Stylist Relations team. Adequate Support and Non-Solicitation policies
are always in effect and will be enforced.
4.11 - Corporate Manual Assignments
We do quite a bit of marketing aimed at helping you build your business. An example of this is when a new Business Owner signs up, without indicating a Mentor-of-Choice, Stylist Relations will manually assign the new Business Owner to a Mentor. This is referred to as a Corporate Manual Assignment, and is a gift from us to Leaders in the field!
Assignments are made to the Business Owner by Stylist Relations, generally based on the following criteria:
▪ Is geographically closest;
▪ Is paid at Star level or above in the preceding month. If there is not a Star or above within a 50 mile
radius of the new Business Owner, but there is a Senior within 50 miles, we will assign to the Senior
Business Owner. If there is no Senior within 50 miles, we will assign to the closest Star or above; and
▪ Is Qualified based on the Qualifying Volume requirement for the brand.
Assignments are based on Pay Rank because this ensures that the new Business Owner is being assigned to a
Mentor who is not only active in the business, but who is also currently leading a team and is exclusively
Stella & Dot Family
22
focused on a Stella & Dot Family Brand. This is very important for new Business Owner as they learn the ins
and outs of the business!
4.12 - Opportunity Events
Hosting local events, such as local Business Owner Meet Ups, New Business Owner Trainings and Business
Opportunity Sessions is a great way to garner momentum for your business and connect with your
community.
Opportunity Events will help you expand your social network and let potential Business Owners know all the
great reasons to join! Your monthly Business Owner Meet-ups are intended for all local current Business
Owners, not just those within your family tree.
We want to help you widely announce your events – for this reason we have an Events section on our
Corporate Websites with lists of events – this is a great way to get your events in the spotlight!
▪ If you are a Career Rank of Star Business Owner or above, you may post your event on the Head
Office events page. As a Senior Business Owner, you may do the same, only if there is not a Star
Business Owner or above in your brand within a 50 mile radius of where you will be holding your
event. To find out if you fit the criteria, please contact the Events Team. If you are Career Rank of
Associate Director or above, your event may be eligible for posting on the Corporate Facebook Fan
Page;
▪ You must be the one hosting, attending and leading your event;
▪ Create your event on Eventbrite and send it to the Events Team at [email protected] at least
two weeks prior to the event for approval for posting;
▪ The Events Team may choose to post select events to a Corporate Facebook Fan Page. The featured
events will be selected based on factors such as location of event, areas we are trying to target and
more.
▪ Once the Events team has provided you with approval, your event will be posted on a Corporate
Website or a Corporate Facebook Fan Page, based on the above.
▪ If you have questions regarding posting events, please email the Events Team at
[email protected]. Please note that the Events Team has the right to deny a request.
The intent of these events is for guests to have fun exploring the business and gather more information
about becoming a Business Owner. You should not attend an Opportunity Event with the hope of
sponsoring a new Business Owner who you have not personally invited to the event – this includes
handing out your business cards to guests or soliciting a guest to join your team. Please be sensitive to
our strict ‘no poaching’ policy.
If you are hosting the event, please be sure to bring information cards for potential Business Owners to
fill with their contact information and the name of the Business Owner who referred them to the event.
Stella & Dot Family
23
This will ensure the correct Business Owner receives the proper credit. If an unaffiliated guest wants to
become a Business Owner, we will make the assignment based on our ‘Corporate Manual Assignment’
program.
Please note that at these events (or any other events), when speaking to potential Business Owners, you
may not present income data other than what is provided to you by Head Office. The Stella & Dot Family
Brands’ business model is largely based on personal performance and commission; therefore, income
projections for an individual are impossible to make. If hypothetical income examples are made, you
must make it clear that these examples are strictly hypothetical and not based on actual experience.
Lastly, please refrain from using comparisons to competitor products, which are likely to be misleading
or which work against principles of fair competition.
4.13 - Inadequate Support
We want you to feel supported by Mentor leadership team knowing that you have the support and
leadership needed to be successful! This section will cover what we require from Mentors. Under the
Compensation Plan, Leaders are incentivised to coach Business Owners at all levels of their Downline team.
As such, please note that Mentor Reassignments are exceedingly rare and are only ever considered in
extreme circumstances.
Your Mentor and Leadership team should be providing you with the support, coaching and guidance needed
to successfully build and grow your business. If you feel that you are not receiving the ‘Minimum Leadership
Support’ from your Mentor or Leadership team, you should discuss this directly with your Mentor or
Leadership team. You must proactively reach out and request support of your Upline leadership team before
claiming lack of support. Below are some examples of situations that demonstrate a lack of ‘Minimum
Leadership Support’. This list is not all-inclusive.
▪ Regular unresponsiveness to emails and/or unreturned phone calls on a continued basis;
▪ Unprofessional behaviour during coaching calls, such as being distracted by driving, multi-tasking
with other activities, being unprepared or unaware of your business;
▪ Lack of consistent coaching towards business goals that have been clearly communicated with your
Mentor;
▪ Unenthusiastic, negative and/or obstructive behaviour;
▪ A history of a long-standing lack of recognition or kudos for promotions and successes;
▪ Unethical business behaviour;
▪ Promotion of other business opportunities or products outside the Family of Brands;
▪ Suspicion of Bonus Buying or other non-compliant activities; or
▪ Negative or disparaging remarks about other Business Owners, the Head Office, our products, the
Compensation Plan or any of our programs.
Once you notice that you are not receiving the support needed, you should voice this immediately to your
Upline team prior to contacting your Stylist Relations team. Stylist Relations follows a formal mediation
process, which will be followed without exception. To be considered for this process, you must have
Stella & Dot Family
24
informed your Mentor of your concerns and made every effort together to resolve your concerns for at least
two weeks before Head Office will become involved.
As part of our Stella & Dot Family, you are welcome to sell and build teams (until you reach Associate
Director level Pay Rank) with multiple brands within the Stella & Dot Family Brands. However, you do need
to ensure you are fully engaged in coaching and leading both teams. If we hear concerns about your level of
engagement and coaching from Downline team members, we reserve the right to roll that team member up
to the Next Qualified Leader (NQL), bypassing mediation.
Note: For the overall protection of all our Business Owners, we reserve the right to reject transfers for any
reason, including ensuring a ‘no poaching’ culture and environment is maintained at all times. Additionally,
in cases of International Roll-ups, an amended process may be followed, as there may be additional barriers
including language and time zone differences.
4.14 - Release of Team
You may release your team at any time, for any reason. In order to do so, you should email your Stylist
Relations team with a release request email. Stylist Relations will determine when the team reassignment
will be effective. Each individual team member will roll-up to the NQL.
We ask that that you discuss with your Mentor and team members the intent to release your team prior to
contacting Stylist Relations, so they are aware of the intended change.
Please note that you may release individual Business Owners from your team if 1) you inherited a Business
Owner and you were not planning on growing your team any further and/or 2) you do not feel you have the
ability to coach the Business Owner given your goals and the coaching the Business Owner requires.
Please also see Section 4.15, Roll-Ups, for further details around roll-up procedures when leaders release
large teams, as this may follow a modified procedure at the discretion of Head Office.
4.15 - Roll-Ups
Roll-Ups are defined as the process of a team rolling from the current Mentor to a new Mentor. Roll-Ups
occur when you, as a Business Owner with a team:
▪ Terminate the Business Owner Agreement as a result of Voluntary Cancellation, Deactivation or Head
Office Termination;
▪ Lose your team due to the ‘Compression’ policy;
▪ Fail to meet the ‘Minimum Leadership Support’ requirements; or
▪ Downline concerns of Mentor focus where Mentor is participating in other direct sales businesses.
At the time of a team’s roll-up, every Business Owner on the First Line will immediately roll-up to the Next
Qualified Leader (NQL). NQL is defined as the next Upline Leader within the Family Tree who:
▪ Was Qualified based on the brand’s PQV requirement in one of the previous three months; and
Stella & Dot Family
25
▪ Has the willingness and capacity to actively coach the rolling-up team as per the ‘Minimum Leadership
Support’ requirements. Roll-ups will remain at the discretion of the Home Office in the event of any
documented cases of leadership complaints and/or compliance issues against the Upline Business
Owner.
During a Roll-up, all first line Leg Leaders will roll to the NQL. The first Line Leader of the Leg with the
highest career rank at the time of the roll will count as a titled leg for the NQL. The remaining first Line legs
will count as adopted per the Sponsoring/Mentoring Relationships policy (4.5.).
In the rare event the NQL inherits two (2) or more Star Legs (or above), only the Star and above Leg with the
highest Career Rank will count as a titled leg for the Upline. The remaining Star and above legs will count as
adopted per the Sponsoring/Mentoring Relationships policy (4.5.) In the event the highest Star or above legs
hold equal Career Ranks, TQV will be used to determine who the titled leg Business Owner will be.
If you advance in Career Rank because of a Roll-up or when an Adopted Leg is released to you after twelve
(12) months, it is Home Office’s expectation that you understand the obligations and requirements of your
new Career Rank and you will provide the appropriate mentoring and coaching for your Downline team(s)
per the Mentor Guidelines and Obligations policy (4.1) and the Minimum Leadership Support policy (4.2).
The applicable Stylist Relations team reserves the right to reassign the compressed team to a different
Leader, potentially on a different team, if these qualifications are not adequately satisfied. If there is not an
NQL on your Family Tree, the Stylist Relations team will manually assign the team to an NQL on another
Family Tree. In these rare circumstances, 1st line Business Owners of the rolling team will be reassigned to
the closest leader with a Career Rank at least 1 level higher than that of the rolling Business Owner,
potentially outside the family tree. Star Directors may be reassigned to Head Office and form a new direct-to-
corporate line.
In the instance of a roll-up where the Downline team and Upline leadership team are not from the same
country (except roll-ups between US and CA,) rolling the Downline team to the NQL within the Family Tree
will be given preference. However, the rolling Downline Business Owner will first roll to her/his local Home
Office for a maximum of 15 business days. Stella & Dot Family Brands is committed to ensuring all Business
Owners have engaged and active sponsors, as such the local Stylist Relations team will review the roll-up for
any potential conflicts such as language or time zone barriers. To allow a Business Owner to roll-up to a
Business Owner in another country, both Business Owners will need to:
• Be fluent in a shared language,
• Agree there are no time zone barriers. At a minimum, a mutually agreed weekly coaching time utilising
video conferencing tools (such as Skype) will need to be established.
• Have a coaching plan approved and retained on file by Stylist Relations.
If, after review by Stylist Relations and input from both Business Owners it is determined there are barriers
that would prevent a successful business and mentoring relationship, the rolling Business Owner will roll to
the closest Qualified Leader within her/his home country per the Corporate Manual Assignment policy
(4.12).
If, after 15 days, no response has been received from the rolling Downline Business Owner, Stylist Relations
will make the final determination and roll the Downline to the NQL within the Family Tree.
International Upline leaders are expected to uphold the same leadership and mentoring responsibilities as
outlined in the Minimum Leadership Support policy (4.2).
Stella & Dot Family
26
Note: Roll-ups can occur immediately and without prior notification. However, your Stylist Relations team
has up to 30 days to process roll-ups. Roll-ups are effective in the month executed and will not be retroactive
to the date of the original request.
4.16 - Compression
Compression only applies to you if you have a team. Compression is designed to ensure all Business Owners
have an active and engaged Mentor who is leading by consistent example through personal Sales Event sales.
If you, as a Mentor, do not Qualify at least once in a four-month rolling period, you will lose your team and
they will roll-up to the NQL, where the four-month rolling qualifying period starts the month after qualifying.
Business Owners do not earn coaching commissions in months they do not qualify. If you do not qualify for
coaching commissions for four consecutive months, your team will roll-up due to Compression. Your
personal account is not affected by Compression.
We ask that you respect the ‘Bonus Buying’ policy (see Section 2.17) as this can result in termination of the
Business Owner Agreement.
Your Stylist Relations team reserves the right to transfer your team if this policy or any of the requirements
of sponsoring or leading a team are violated.
In order to lead by example, PQV minimums must be generated primarily through in-home Sales Events.
Sales cannot be generated solely through online purchases (non-Sales Event orders).
4.17 - Cross-Sponsoring
Cross-sponsoring is defined as the enrolment of an active Business Owner or a terminated Business Owner,
who has been active within the preceding six months, into a different line of sponsorship. This includes the
use of a spouse or relative’s name or assumed names to circumvent this policy. Cross-sponsoring is strictly
prohibited.
Please note that you also may not demean or discredit other Business Owners in an attempt to entice a
Business Owner to be a part of your team. This act counts as ‘poaching,’ which is against Policy.
SECTION V. MARKETING YOUR BUSINESS
We invest in our branding, PR, social media and email marketing to bring you Corporate Leads, Referral
Orders and repeat business from your opted-in customers. In addition, we encourage you to engage in your
own marketing activities to drive your business. In this section, we will discuss policies regarding the “right”
way to do this.
Please keep in mind that these policies are intended to promote an equal playing field for all Business
Owners. A good way to determine whether a marketing activity is compliant or not is to ask yourself:
1. Is this duplicable for my team or another Business Owner? Is this keeping our business simple,
rewarding and fun for all?
Stella & Dot Family
27
2. Is this an activity in which all Business Owners within the Business Owner community can
participate? Would this impair our brand and the profitability of a Business Owner or the health of
Stella & Dot Family Brands over the long run if everyone participated in this practice?
If you answer ‘yes,’ the activity you are engaging in is most likely compliant.
5.1 General Compliance
We cannot list every social media platform currently available or coming in the future. As such, all policies
pertain to every type of social media platform. If any of the below is confusing or you have questions
regarding whether an activity is in compliance or not, please do not hesitate to reach out to your applicable
Compliance team.
5.2 Promoting your Business
When promoting your business, it is of vital importance to not violate any of the compliance policies that
may negatively impact you, the Stella & Dot Family Brands or the community of Business Owners.
Independent Business Owners must at all times conduct your Stella & Dot Family Brands business in a
manner that reflects favorably on Stella & Dot Family Brands and the good name, goodwill and reputation of
Stella & Dot Family Brands and our products. You must not engage in deceptive, misleading or unethical
conduct or practices that are or might be detrimental to Stella & Dot Family Brands, our products or the
public. To ensure you are operating your independent business in compliance with applicable laws, rules and
regulations as well as the terms of your Business Owner Agreement, please carefully review and abide by
these policies. To further assist you with your Stella & Dot Family Brands business, we are providing the
following general guidelines when advertising your business in any medium.
5.2.1 Clearly Representing Your Independent Business Owner Status
You may not misrepresent yourself in a way that creates confusion that you represent the Home Office. If you
list contact information, you must identify yourself as an ‘Independent Business Owner’ (i.e. a Stylist,
Designer or Specialist) and always use the word “I” instead of “We.” In addition, you must clearly state in all
marketing materials and on public forums (including your social media pages) that you are an “Independent
Stylist,” “Independent Designer,” or “Independent Specialist,” as applicable, to make it clear that you are not
an employee of Stella & Dot (i.e. you do not work at or for any of the Stella & Dot Family Brands).
5.2.2 Advertising
To ensure fairness to all Independent Business Owners, your advertising activities related to Stella & Dot
Family Brands Products or your Stella & Dot Family Brands business must comply with certain restrictions.
For example, Business Owners are not permitted to advertise through mass mailings or through channels
otherwise deemed inappropriate by Stella & Dot. Any advertisements related to your Stella & Dot Family
Brands business (whether in print, online, via social media, radio or television) must be limited to a fifty (50)
mile radius of the city in which you live and must be accurate, professional and not misleading in any way.
This does not apply to your PWS or social media, for example your Facebook page, which reaches an
Stella & Dot Family
28
audience broader than fifty (50) miles in radius, but does include any paid platform (such as Facebook Ads
or Google Ads).
You may not run advertisements (whether in print, online, via social media, radio or television) that feature
specific products for sale or offer blanket discounts (please see ‘Blanket Discounts’).
Independent Business Owners may sell Stella & Dot Family Brands Products through their PWS or through
the Stella & Dot Family Brands corporate websites or Dottie. Sales of Stella & Dot Family Brands Products
through any other website are strictly prohibited. For further details, please see Section 5.7 regarding your
PWS and Section 5.12 regarding ‘Sales through Other Internet Sites.’
All media communications are handled by our PR team in Home Office. Accordingly, please do not reach out
directly to celebrities, national magazines or other media outlets on behalf of any Stella & Dot Family Brand
via any other social media platform or communication mode. Please see Section 5.14 regarding ‘Media
Engagement’ for more details.
You may provide commentary on social media sites, including comment section in order to assist with
questions and to support Stella & Dot Family Brands on behalf of all Stella & Dot Family Brands Independent
Business Owners. However, you may not direct leads or potential sales to your personal PWS. Should you
notice a potential lead or order on a social media site, please provide assistance by posting the Stella & Dot,
KEEP, or EVER Corporate website URL. The lead or order will be assigned to the appropriate Business
Owner, per the Corporate Leads policy (Section 3.3) or Corporate Referral Orders policy (Section 3.4).
If you are a Business Owner in more than one Stella & Dot Family Brands business, you must keep your
businesses separate in all marketing materials so as not to confuse your messaging or customers. Please see
Section 5.6 for further details around marketing across multiple brands.
If you have a question or concern regarding permitted advertising activities, please speak to your Mentor or
your Family Brand’s Compliance team directly rather than posting on social networking sites. This makes it
far more efficient and pleasant for everyone subscribed to these sites.
5.2.3 Social Media
We understand that social media sites, including but not limited to, Facebook, LinkedIn, Twitter and
Instagram can be extremely helpful in growing your Stella & Dot Family Brands business. As such, we
encourage Independent Business Owners to use social networking sites, blogs and other forms of internet
communication to promote your Stella & Dot Family Brands business. However, please note the following
requirements regarding your use of social media in connection with your Stella & Dot Family Brands
business:
1. We recommend starting a new social media profile for your Stella & Dot Family Brands business. This will
help ensure that your activities as an Independent Business Owner are kept separate from your personal
social media sites and activities.
Stella & Dot Family
29
2. You may not use any derivative of the Stella & Dot Family Brand names in any social networking account
names, website URLs, email addresses or your PWS URL extension, which include but are not limited to
“Stella” and/or “Dot,” “Stella & Dot,” “SD,” and the like.
3. You may promote Stella & Dot Family Brands Products and your Stella & Dot Family Brands business on
social media, but you may not use social media sites to sell Stella & Dot Family Brands Products.
4. You must comply with the rules associated with any particular social media website or network.
5. You must refrain from making postings that are false, misleading or deceptive. This includes but is not
limited to, false or deceptive postings about Stella & Dot Family Brands, Stella & Dot Family Brands Products,
the business opportunity presented by Stella & Dot Family Brands, and/or Independent Business Owner
personal information or credentials.
6. You must refrain from making postings or linking to any posting or other material that is or may be
considered:(a) sexually explicit, obscene or pornographic; (b) offensive, profane, threatening, harmful,
defamatory, libelous, harassing or discriminatory; (c) solicitous of any unlawful behavior; (d) a personal
attack on any individual, group or entity; (e) in violation of any intellectual property rights of Stella & Dot
Family Brands or any other third party; or (f) not consistent with the terms and conditions of these Policies
& Procedures.
Independent Business Owners are solely responsible for any postings and online activity related to your
Stella & Dot Family Brands business. If you create, operate or own a website, blog or other internet site, you
may not sell, offer, book a Sales Event or sponsor a Business Owner via the site itself. All links must go back
to your PWS. Any SEO or SEM for this website, blog or internet site must be focused only on the individual
Business Owner and may not include any iteration of S&D Trademarks. You must have permission to feature
any other Independent Business Owners on such platforms, and you must be sure to represent yourself as an
Independent Business Owner so there is no confusion regarding whether you are a Home Office employee.
Even if you do not own or operate a blog or social media site, any comments or posts you make to such site
or that can be traced to Stella & Dot Family Brands will be your personal responsibility.
In the event of the termination of your Business Owner Agreement, you must remove references to Stella &
Dot Family Brands from social networking profile(s) from public view within ten (10) days of the date of
termination. If you created separate accounts for your Stella & Dot Family Brands business, we ask that you
close such accounts.
We understand that you may send individual messages via social networking sites to persons you do not
know who are in your wider network of people who you do know. We ask that you use your best judgment
when sending such messages and always try to ensure you are respecting the privacy of others.
5.3 Unsolicited Communications
You may not engage in unsolicited, bulk-email distributions, faxes, telephone communications or text
messaging or use of any other electronic communications in connection with the advertising, promotion or
sale of Stella & & Dot Family Brands Products or in an effort to recruit an individual to your Stella & Dot
Family Brands business. You may send electronic communications to (i) any person from whom you have
Stella & Dot Family
30
prior consent to contact via the specific mode of communication or (ii) family members, personal friends or
any other person with whom you have established a business or personal relationship. You may not collect
business cards from an event and subsequently call these contacts unless they gave you permission when
you collected the information – this is a form of telemarketing and is not allowed. You may send text
messages related to your business to potential customers only if you have either received consent to do so or
are sending a text in response to a text message sent to you. If a potential customer requests that you not
send text messages, you must refrain from sending that person a text message in connection with your
business.
Without limiting the above, any electronic communications, including but not limited to, messages sent via e-
mail, social networking sites or other means sent by an Independent Business Owner in connection with
her/his business must meet the following requirements:
1. The communication must clearly identify the Independent Business Owner as the sender of the email
and as an Independent Business Owner of Stella & Dot Family Brands;
2. The communication must include an accurate return email address of the sender;
3. The communication must include a notice that advises the recipient that she/he may reply to the
email via the return email address provided or other means to change email preferences or opt-out
of future emails;
4. The communication must include the Independent Business Owner’s physical mailing address; and
5. The communication must clearly and conspicuously disclose that the message is an advertisement or
solicitation.
In addition to the above requirements, you must refrain from deceptive subject lines or false header
information, and you must honor opt-out requests as soon as possible, and in any event, no later than ten
(10) days of receipt of any such request. Please also make sure to review Section 2.3 regarding permitted
collection and use of Personal Information. If you are sending electronic communications to anyone residing
or located in Canada, please also make sure to review and abide by our CASL Policy, attached as Addendum
C.
5.4 Marketing Materials and Restricted Use of Stella & Dot Family Brands Trademarks
We strive to provide you with all the collateral you need to market your business. Should you feel it is
necessary to create your own marketing materials, you must ensure they fully comply with the policies
outlined in this Section 5.4.
S&D Trademarks and S&D Content are valuable business assets that support a unique and equitable business
opportunity for Independent Business Owners. Accordingly, Stella & Dot Family Brands and Independent
Business Owners have a mutual interest in protecting the integrity of the Stella & Dot Family Brands. Per the
terms of your Business Owner Agreement, Stella & Dot is the sole and exclusive owner of S&D Trademarks
and S&D Content. As an Independent Business Owner, during the term of your Business Owner Agreement,
Stella & Dot Family
31
you have a limited right to use the S&D Trademarks solely to promote your Stella & Dot Family Brands
business.
When representing yourself as an Independent Business Owner, you may use only those logos available in
the ‘Marketing Materials’ section of your Lounge. You will see that all the logos available to you include the
verbiage “Independent ‘Business Owner’” underneath the brand’s logo. This is intentional as logos that solely
say “Stella & Dot” without the “Independent Business Owner” verbiage are not allowed for use unless
otherwise specified for certain events or meetings or approved in advance by the Home Office. Some of these
also include a disclaimer that the applicable Stella & Dot Family Brand has not approved of the independent
marketing materials of Independent Business Owners. If you use the provided logo that does not include the
disclaimer, you must still include that disclaimer somewhere on your marketing collateral in a clear location
in a legible font. Your collateral must also maintain the integrity of the brand, comply with all Policies &
Procedures, as well as all applicable laws.
In addition, Independent Business Owners must not:
1. edit, alter or customize any S&D Trademark, including logos approved for use, in any manner.
2. use any trademark or service mark that is similar to or may be confused with any S&D Trademark or
S&D Content.
3. combine any S&D Trademark or S&D Content with any other trademarks or service marks.
4. use S&D Trademarks or S&D Content in connection with any other business or opportunity outside of
the Stella & Dot Family Brands.
5. use S&D Trademarks or S&D Content in connection with any products that are not genuine Stella &
Dot Family Brands Product.
6. profit from the use of Stella & Dot Family Brand trademarked names outside of commissions earned
on the sale of Stella & Dot Family Brands Product that may have been obtained through the use of
Stella & Dot Family Brands trademarked names to directly market their business.
7. use S&D Trademarks in connection with Google AdWords or other paid search engine optimization
strategies. This includes the use of your PWS since this contains branded domain names, such as
‘stelladot.com.’ This reduces any confusion between your PWS and Stella & Dot Family Brands
corporate websites.
8. register or attempt to register any S&D Trademarks or similar marks in any class of products or
services anywhere in the world.
Demonstration, display or sales of Stella & Dot Family Brands Products in retail or service establishments of
any kind must be in accordance with these Policies & Procedures.
5.5 Restricted Use of Third Party Trademarks
Stella & Dot Family
32
If you do choose to create your own marketing imagery, in addition to the policies outlined in Section 5.4,
you must also not use trademark-protected names, phrases, or logos of third parties or other brands. As a
general matter, use of another party’s trademark-protected words, phrases, symbols or designs, or a
combination thereof that identifies and distinguishes the source of the goods or services of one party from
those of others is not permitted without the consent of such party. Even if you feel you obtained images from
a credible source, your use of such image can still be in violation of another party’s rights. In order to avoid
creating personal liability issues for yourself as well as for Stella & Dot, you must be extremely cautious
about this issue when creating your own marketing materials.
5.6 Co-Mingling Marketing of Brands*
*Not applicable in EU at this time.
5.7 Marketing and Naming: Personal Website (PWS)
We highly encourage you to market your PWS link in order to drive online sales to your business! However,
please make sure you: Do not use any level of search engine optimization or search engine marketing
strategies for your PWS such as Google AdWords. Paid advertising that extends beyond a fifty (50) mile
radius of where you live is strictly prohibited. Please also see Section 5.4, ‘Marketing Materials and
Restricted Use of Stella & Dot Family Brands Trademarks’;
1. Do not market your PWS on any Stella & Dot Family Brands corporate social media pages including
but not limited to Facebook, Twitter and Instagram. If a customer posts a comment requesting to buy
an item, host a Sales Event or similar, you may not post your PWS link in response. We actively
monitor these pages and will assign these customers via our Leads assignment program;
2. Your PWS extension should relate directly to your name – this gives your customers the personalized
shopping experience they love
3. You are not permitted to use any derivative or permutation of any Stella & Dot Family Brands name
or any generic extension such as ‘shop,’ ‘jewelry,’ or geographic locations (cities, major regions);
4. We reserve the right to change your PWS extension if it does not relate to your name or is non-
compliant with our policies; and
5. There are some regulatory limitations on statements about our products, and you will be required to
abide by these limitations on your PWS.
5.8 Naming: Website URLs, Email Addresses and Social Networking Accounts
Similar to PWS naming guidelines, you may not use any permutation of any Stella & Dot Family Brands name
for use in an independent website URL, your email address or account names for social networking sites.
5.9 Business Owner to Business Owner Marketing and Services Restrictions
Stella & Dot has engaged third party marketing material creators to create and develop our Marketing
Materials for our Business Owners. We highly recommend you work with these third parties on any
Stella & Dot Family
33
marketing materials you would like developed outside of the materials provided to you by Home Office to
ensure you are in compliance with our Trademark Policies outlined in Sections 5.3 and 5.4.
In accordance with the non-solicitation provisions of your Business Owner Agreement, no Business Owner
can promote any non-Family Brand services or goods of any kind to another Business Owner. This includes
but is not limited to the sales of graphic design services, business coaching, sales tools, marketing materials,
business supplies, display items, another direct selling opportunity, etc. Business Owners may make
approved sales tools available free of charge if they wish, but may not charge other Business Owner for such
materials.
Business Owners from one Stella & Dot Family Brand may sell brand products to Business Owners from a
different Sister Brand; however, Business Owners may not use their contacts obtained through one Family
Brand to market products, services, or the business opportunity of a Sister Brand, either directly or in any
forum (e.g., Facebook, Twitter, Instagram, Community) dedicated to a different brand, see Section 5.6 for
further details.
5.10 Catalogs and Flyers
You may not advertise, promote, sell or sponsor through other company catalogs. We do however encourage
you to advertise your business via our Marketing Materials, such as Look Books and Opportunity Brochures,
which can be accessed for view and/or purchase in your Lounge.
Stella & Dot: You may leave a flyer in non-retail establishments, such as a doctor’s office or salon, provided
the intent is to attract participants to an in-home Sales Event, not to sell.
5.11 Phone Listing Policy
You may list your phone number as an Independent Business Owner with your brand, but your phone
number should be listed in the manner below:
• Name, Career Rank
• Independent [Business Owner (Stylist)] with [Your Brand] (i.e. Stella & Dot)
• Address, Phone Number.
5.12 Sales Through Other Internet Sites
You may not sell any Stella & Dot Family Brands Products on any website other than your PWS. Additionally,
you may not display product images from any Stella & Dot Family Brands Corporate Website on any sales
websites, including but not limited to online marketplaces.
You may never sell Stella & Dot Family Brands Products on any site other than your PWS (this includes, but
is not limited to, eBay, Etsy, Amazon, Craigslist, Groupon, Poshmark, blogs or any other auction or internet
sites). This also includes engaging others, even those outside your direct household (e.g. Hostesses,
customers, friends, family, acquaintances, or other businesses) to sell on your behalf on such websites. Any
Stella & Dot Family
34
means of circumventing this rule are not allowed. Please pay close attention to this rule, as violation may
result in immediate termination of your Business Owner Agreement.
Even after your Business Owner Agreement is terminated, you cannot sell any items acquired as a Business
Owner online in any forums such as eBay.
5.13 Sales Through Commenting on Competitor Products Similar to Stella & Dot Family Brands
You may not use social media outlets to comment on other brand products that are competitive to a Stella &
Dot Family Brands Products in order to drive sales and direct customers to your PWS.
For example, another company launches a bag very similar to style and size as our product, ‘The Switch.’ A
Business Owner may not post something to the effect of “Hi everyone – this bag looks exactly like the Stella &
Dot ‘The Switch,’ which is cheaper. Take a look at it! Here is a link to my Stella & Dot Personal Website.”
5.14 Media Engagement
Contact the Home Office before participating in any local or national media plans. The Home Office PR team
will initiate all television, cable TV, radio, Internet, newspaper, blogs, syndicated columns, broadcast shows,
newsletter and magazine interviews, features and paid advertisements. If you are presented with an
opportunity to promote your Stella & Dot Family Brands business in the media, please take note of the
following before you accept:
1. Acquire Home Office approval prior to acceptance of invitation;
2. Acquire Home Office approval for any press releases for prior approval. Post-approval, you may only
use ‘Talking Points’ provided by the Home Office PR Department; and
3. Receive coaching prior to any media event (once your story or segment is approved and confirmed).
You must always identify yourself as an Independent Business Owner with your applicable Stella & Dot
Family Brand(s) (i.e. an independent Stylist with Stella & Dot). Please use the singular “I” versus “We” to
avoid confusion that you are representing the Home Office.
It is against policy to:
1. Leak product or confidential information prior to any launch;
2. Contact the press without permission from the PR Department; and
3. Participate in press and advertising opportunities that will be distributed more than a fifty (50) mile
radius of where you live, unless prior approval is given by the PR Department.
5.15 Trade Shows/Expos/Booth Events
While your primary sales strategy should always be in-home Sales Events, you are encouraged to take
creative approaches in your selling. Public events can be opportunities to receive exposure for your business
as you may identify customers interested in hosting a Sales Event, purchasing a product or becoming a
Stella & Dot Family
35
Business Owner. You may promote your business at exhibits, trade shows and craft fairs, so long as you are
in compliance with the following:
• You must register for the event and always refer to yourself as a Stella & Dot Family Brands
Independent Business Owner.
• Only one Business Owner per brand per event -the first Business Owner from a brand to register for
the space with the event sponsor has the right to conduct that event. A second Business Owner from
the same brand may need to withdraw if the first registered Business Owner does not want double
participation. It is a good business practice to check with the event sponsor in regard to this.
• The booth must be staffed at all times and must not be shared by another business.
• Participation in any specific event must have a duration of no more than two (2) weeks in a calendar
year.
• Such events cannot be treated as Sales Events, are not eligible for Hostess Rewards and orders from
these events must be entered as individual orders.
Stella & Dot Family Brands does not endorse any such events and is not responsible for subsequent
participation outcomes. As an Independent Business Owner, you are responsible for your decision to host or
co-host such an event. The business agreement made between you and the event planner is between the
both of you and does not involve Stella & Dot Family Brands. We strongly advise you to evaluate every
business decision thoroughly. If you have any questions about whether to participate in an event, please
contact your Stylist Relations team
SECTION VI. INCOME PROJECTIONS
Since Business Owners’ earnings are based on personal sales commissions and the team sales commissions,
making projections on how much income you will make is near to impossible. As such, when presenting or
discussing the Stella & Dot Family Brands’ opportunity or the Compensation plan to a prospective
Independent Business Owner, you must not make income projections or income claims, or disclose your
Stella & Dot Family Brands income.
The terms “income claim” and/or “earnings representation” include:
1. Statements of actual earnings;
2. Statements of projected earnings;
3. Statements of earning ranges;
4. Income testimonials; and
5. Hypothetical claims.
In the UK, the UK Office of Fair Trading regulates claims regarding the amount of income that can be earned
under programmes such as Stella & Dot.
Stella & Dot Family
36
SECTION VII. TAXES AND FINANCIAL RECORDS
7.1 - Income Tax
As an independent contractor, you are not an employee of Stella & Dot. Due to this distinction, you may have
significant advantages in deducting business expenses such as use of your car, your home computer usage
and other such expenses. Please consult with your Tax Advisor for more information on potential tax
benefits that may be available to you as a self-employed individual. Visit the HMRC website
(www.hmrc.gov.uk) OR Revenue Commissioners (www.revenue.ie) for more information.
It is up to you to maintain complete records of your income and expenses; doing this will assist you when
calculating your taxes every year.
7.2 - W-9 Changes*
*Not applicable in EU [Intentionally left blank]
7.3 - Sales Tax / VAT
When you become a Business Owner, you authorize us to collect and remit, to the proper governmental
agencies, the applicable Value Added Tax (VAT) generated as a result of your sales of product as outlined
below. You must agree to be bound by all Value Added Tax collection agreements between us and all
appropriate taxing jurisdictions, and all related rules and procedures.
Here’s how VAT works for your Stella & Dot Family Brands Business:
When your customers purchase products from Stella & Dot Family Brands, Stella & Dot collects the
required Value Added Tax and submits it to the appropriate governmental agency based on the retail
amount of the order and the location of the shipping address.
Depending on your VAT status (i.e. VAT registered or not), your purchases from the Stella & Dot
Family Brands are:
For VAT registered Business Owners: purchases of products from Stella & Dot Family Brands are
exempt from VAT (as these represent an intra-community supply of goods)
Business Owners who are not VAT registered: when you purchase products from Stella & Dot
Family Brands without utilizing Product Credits or Business Supply Credits, we calculate, collect
and remit VAT on the price you pay for the item. When you use Product Credits on your order,
VAT is calculated on the full retail value of the items. E.U. Business Owners are also charged VAT
on the full retail value of Business Supplies, regardless of whether or not BSC are used.
The VAT amount charged or credited will be detailed on the receipt, available after an order has been
placed.
7.4 - Other Exempt Sales*
Stella & Dot Family
37
*Not applicable in E.U. [Intentionally left blank]
7.5 - Requests for Financial Records*
* Not applicable in E.U. [Intentionally left blank]
SECTION VIII. DIRECTOR’S PERSONAL QUALIFYING VOLUME (PQV) EXEMPTION PERIOD
We offer a one time, one month only PQV exemption policy for Business Owners who have achieved and
maintained a Pay Rank of Associate Director or above. We understand that because Director-Level Career
Ranks are considered full-time jobs, you may financially depend on your Pay Rank each month. Being a
Business Owner at this level does require a considerable amount of dedication to your business and as
respect to the level of commitment you show to Stella & Dot Family Brands, we offer assistance with your
Pay Rank. Please note that your renewal date cannot be extended due to the exemption period. To qualify for
this one-time exemption, you simply need to have achieved a Pay Rank of Associate Director or above for at
least three months within the preceding six months.
This one time exemption period is intended for Directors planning to continue business at the Director-Level
following the exemption period. You may use your one time exemption whenever you’d like, but once you’ve
used it, it’s gone. Please reach out to Stylist Relations for the exemption request in writing by no later than
the 20th day of the month in which the exemption is intended to be used.
This policy allows eligible Business Owners to earn a one month exemption from earning the PQV needed to
Qualify for coaching commission and to maintain a Director-Level Pay Rank. This exemption does not apply
to any other components of a pay rank including:
▪ Minimum number of qualified Legs or Titled Legs;
▪ Minimum monthly TQV requirements;
▪ Compensation Plan, sales programs, contests, awards or monthly incentives for you or any Business
Owner on your team; or
▪ Pay Rank achievement for Promotion Bonuses.
If you actually generate PQV during the Exemption Period, this PQV will count toward TQV, sales programs,
contests, awards and monthly incentives.
You are responsible for understanding and properly utilizing this one time exemption period. If you have any
questions at all about this policy, please contact Stylist Relations team for clarification. Unfortunately, the
exemption period cannot be lifted once granted, even if actual PQV is achieved during the Exemption period.
SECTION IX. TERMINATION AND REACTIVATION
In the event you decide you no longer wish to continue as a Stella & Dot Family Brands Independent
Business Owner, we have included information on the process of ending your relationship with us. There are
different forms of Business Owner Agreement termination. In this section, we will describe the different
Stella & Dot Family
38
ways in which the Business Owner Agreement can be terminated, the effects it will have on your account and
team, and the reasons for both deactivation and reactivation.
9.1 - Buyer’s Remorse
If you sign up as a Business Owner with us and decide that it is not the right thing for you, we honour buyer’s
remorse for our Business Owners within 14 days of the time you sign-up. Please contact the Stylist Relations
Team for a full refund provided that, if your Starter Kit (together with the free Stella & Dot Family Brands
Products and any other promotional or training materials purchased) has already shipped, you send it back
in an un-opened condition (or otherwise re-saleable condition if their external wrappings have been broken)
within a further 14 days from the date of notification to the Stylist Relations Team.
9.2 - Voluntary Cancellation of Business Owner Agreement
You may terminate the Business Owner Agreement at any time and for any reason. To do we request that
you submit a ‘Voluntary Cancellation’ form, which can be downloaded from the document library in the
Stylist Lounge. We also ask that if you submit written notification to your Mentor and your Downline team.
Upon termination, you will lose your Independent Business Owner status and all Independent Business
Owner benefits including product discounts, Stella & Dot Family Brands mailings, eligibility for Business
Owner contests, access to events and incentives, as well as the loss of all Downline Business Owners and
related team sales commissions. Your team and related team sales commissions will roll-up to the qualified
Upline Business Owner, in accordance with our policy on Roll-ups during the following calendar month.
9.3 Inactivity Policy*
*Not applicable in E.U. [Intentionally left blank]
9.4 - Deactivation
The Business Owner Agreement may be terminated and your status as an Independent Business Owner
deactivated due to one or more of the following:
▪ Your death or bankruptcy;
▪ Immediately upon relocation and change of your permanent residence to a residence outside of the
country in which you entered into the Business Owner Agreement.
The implications of being deactivated are the same as those described in Section 9.6.9.5 - Head Office Termination
In accordance with the terms of the Business Owner Agreement, the Head Office can likewise terminate your
Business Owner Agreement at any time and for any reason, including but not limited to your violations of
policies as described in these Policies & Procedures, by notifying you in writing of our decision and reasons
for termination (“Ordinary Termination”).
In the event of a Head Office Termination, no portion of any annual renewal fees will be refunded to you.
Stella & Dot Family
39
Upon termination of the Business Owner Agreement, please do the following:
1. Pay all amounts due and owed to Home Office within five (5) days of termination;
2. Understand that you are no longer eligible to receive any un-accrued compensation or rewards as an
Independent Business Owner; and
3. Return all Confidential Information to the Home Office of Stella & Dot.
Upon termination of the Business Owner Agreement, you may not do the following:
1. Represent yourself as a Stella & Dot Family Brands Independent Business Owner, effective immediately;
2. Use or disclose Stella & Dot’s Intellectual Property and Confidential Information; or
3. Hold Sales Events, trade shows, presentations or offering for sale or selling Stella & Dot Family Brands
Product.
Stella & Dot will notify you by e-mail of the Head Office Termination at the latest email address listed, for you
in your Business Owner account. If your Business Owner Agreement was terminated by the Head Office,
Stella & Dot may refuse to accept any future application by you to become an Independent Business Owner
of any Stella & Dot Family Brands business in the future, even if under an alias name. If you attempt to
become an Independent Business Owner again after being terminated by the Head Office, we may terminate
your new account.
9.6 - Effect of Termination
Terminations of the Business Owner Agreement by an Independent Business Owner are effective the first
day of the month following the date of notice of termination. In instances of termination by Home Office,
terminations are effective immediately.
Upon termination of the Business Owner Agreement for any reason, whether voluntary cancellation,
deactivation or termination by the Home Office, your team (if you have one), will Roll-up as per our Roll-up
Policy. Additionally, if you self-terminate, are deactivated or terminated by Home Office, you will lose any
Product Credits and Business Supply Credits that you have earned. You will receive legitimately earned
commissions only for the last full payment period you were active prior to termination.
9.7 - Terminated Business Owners’ Buy-Back Policy
We understand that if you are no longer an Independent Business Owner with Stella & Dot Family Brands,
you may not have use for some of the items that came with your Starter Kit, Sample Products or for Business
Supplies. For these reasons, we offer a ‘Buy-Back’ policy for certain of these products, under certain
conditions. The ‘Buy-Back’ policy options once you are outside the 14 day cooling-off period for buyer’s
remorse are listed below:
1. Starter Kit and Sample Products
The Business Owner Starter Kit and first chance sample order that a Business Owner has personally
purchased from Stella & Dot may be returned. Items purchased from other Independent Business Owners
and third parties are not eligible for return. Starter Kits must meet the “resalable” requirements and have all
components of the original kit included in the return. Upon receipt of a resalable Starter Kit or first chance
sample order products, you will be refunded 90% of the net cost of the original purchase price less
applicable setoffs. The original shipping and handling fees are not eligible for refund.
Stella & Dot Family
40
Starter Kits and sample products will be deemed “resalable” if each of the following is satisfied:
1. the items are unopened and unused;
2. the packaging and labelling are current and have not been altered or damaged;
3. the items and packaging are in such condition that they are commercially reasonable to resell the items
at full price;
4. the items, at the time of purchase, are not identified at the time of sale as “discontinued,” seasonal or
ineligible for return; and
5. the items are returned to us within twelve (12) months of the date of purchase
The Starter Kit and first chance sample order products must be returned to the Head Office via registered
mail. A trackable and/or insured (for approximately £400 / €500) shipping method should be used, as Head
Office will not be responsible for lost shipments.
Refunds for any of the above will be issued within four weeks from receipt of the returned product.
2. Business Supplies and Discounted, Discontinued or Seasonal Products Personalized business
supplies, such as business cards, are not eligible for return and will not be refunded.
PWS fees are non-refundable.
9.8 - Account Holds
The Head Office may suspend your account if, for example, money is owed, or for violation of other policies
listed in the Policies & Procedures. If an account is suspended, you are prohibited from placing orders,
receiving all or a portion of commissions, registering for corporate events, or obtaining other Business
Owner benefits. Access to the above will be restored once the account is current and/or all Policy &
Procedure violations are corrected; or if you are in a requalification period, until the requalification period
has expired.
9.9 - Reactivation Policy
You are welcome to sign up as a Business Owner again if your Business Owner Agreement ended as a result
of your voluntarily cancellation or deactivation, however, the Head Office reserves the right to deny a
request for reactivation. If the Head Office terminates you, you may not reactivate at any time. If you
cancelled the Business Owner Agreement during the 14 day cooling-off period for buyer’s remorse, then you
will be ineligible to reactivate your Business Owner status for six months.
If your application is accepted, you must start at the beginning Business Owner Status Level of ‘Pending’ and
beginning Career Rank of Business Owner. If you had a Downline team, you are not eligible to receive your
team back.
Your Stella & Dot Family Brands account may be reactivated in one of two ways, depending on how long it
has been since your Business Owner account was deactivated.
Deactivated within the past Six Months
Stella & Dot Family
41
If you decide to sign-up again as a Business Owner within six months of when you self-terminated, please
contact the Stylist Relations Team and they will assist you with reactivating your account. When you
reactivate, you will retain your previous Business Owner ID and Mentor (Mentor changes cannot be made).
You will not be granted a new Jumpstart.
Deactivated more than Six Months Ago
If you decide to reactivate after more than six months since your cancellation date, please contact the [Stylist
Relations Team] so they can have your previous account cleared. Once this is complete, you will be able to
sign-up online and submit a new Business Owner Agreement. In doing this, you will be provided a new
Business Owner ID, be able to select any Mentor you would like, purchase a new Starter Kit, and be able to
take advantage of a new Jumpstart.
Waiver of Claims
In cases where the appropriate mentorship change procedures have not been followed, and a Downline
organization has been developed in the second business developed by a Business Owner, Stella & Dot
reserves the sole and exclusive right to determine the final disposition of the Downline organization.
Resolving conflicts over the proper placement of a Downline that has developed under an organization that
has improperly switched Mentors is often extremely difficult. THEREFORE, INDEPENDENT BUSINESS
OWNERS WAIVE ANY AND ALL CLAIMS AGAINST STELLA & DOT, ITS AFFILIATES, OFFICERS,
DIRECTORS, OWNERS, EMPLOYEES, AND AGENTS THAT RELATE TO OR ARISE FROM STELLA & DOT’s
DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT DEVELOPS
BELOW A BUSINESS OWNER THAT HAS IMPROPERLY CHANGED LINES OF SPONSORSHIP.
SECTION X. GENERAL TERMS
The Business Owner Agreement, which incorporates these Policies & Procedures, is the basic tenet of the
relationship between you, as a Business Owner, and Stella & Dot. We expect each Business Owner to read
and comply fully with all provisions of the Business Owner Agreement, including these Policies &
Procedures. This agreement creates a framework that ensures you are operating in a legal, ethical and
responsible manner that will enable your success and ours.
There are strict laws governing the operations of Stella & Dot Family Brands and you as an Independent
Business Owner. It is imperative you follow all of these laws and regulations, just like we do. In this section,
we will mention requirements for you to continue your Stella & Dot Family Brands’ business as well as the
laws and guidelines you are required to comply with even if they were mentioned before in your Business
Owner Agreement – it cannot hurt to provide you with the most clarity possible! To the extent there appear
to be any conflicts with this section and your Business Owner Agreement, the terms of your Business Owner
agreement shall prevail.
Stella & Dot Family
42
10.1 - Legal Compliance
As a Business Owner, you are subject to EU and national laws and regulations concerning the operations of
your business. You are solely responsible for your own managerial decisions and expenditures, including
estimating income taxes and self-employment taxes.
10.2 - Ethical Conduct
As an Independent Business Owner, you agree to conduct your business with honesty and integrity.
You agree to refrain from making negative, disparaging, untrue or misleading comments about Stella & Dot,
any of the Stella & Dot Family Brands, other Stella & Dot Family Brands Independent Business Owners, Stella
& Dot Family Brands products, the Compensation Plan, or the board of directors, officers, or employees of
any Stella & Dot company or other entity. While Stella & Dot Family Brands encourages and thrives on
constructive input from all of its Business Owners given directly to us in a professional manner, negative
comments and remarks made by Business Owners serve no purpose other than to sour the enthusiasm and
ultimately the success of other Business Owners.
You also agree not to engage in any activities that may cause harm to Stella & Dot or any other Independent
Business Owner.
10.3 - Continued Permanent Residence
In order to retain your original Business Owner Agreement with Stella & Dot, you must remain a permanent
resident in the country in which you signed-up as an Independent Business Owner. The Business Owner
Agreement does not transfer to another country in which Stella & Dot operates. If Stella & Dot operates in the
country of your new residency, you must sign up to be an Independent Business Owner in your new place of
residency to continue your Stella & Dot Family Brands business.
10.3.1 - Multiple Independent Business Owner Agreements
Brands within the Stella & Dot Family Brands operate in the United States (including Puerto Rico). Certain
brands also operate in Canada, the United Kingdom, Germany, France and the Republic of Ireland. To
conduct business in any country in which Stella & Dot operates, you must:
▪ Have a Business Owner’s ID for the brand that conducts business in that country;
▪ Have the right to work in that country;
▪ Have a valid bank account and address in that country;
▪ Create a separate email address to associate with your Business Owner Agreement in that country;
and
▪ Sign the Business Owner Agreement for that country, which includes paying for a separate Starter
Kit.
Stella & Dot Family
43
Business Owners may hold only one Business Owner Agreement per brand per country and may be a Business Owner in more than one country as long as it is a country in which Stella & Dot operates and provided the Business Owner meets the above expectations to hold a unique Business Owner Agreement for that country. Business owners are only permitted to hold physical trunk shows in countries in which they have a valid Business Owner Agreement. Business Owners may market, promote and sell the Company's products through their personal Business Owner web site only in Austria, Belgium, Denmark, Finland, France, Germany, Republic of Ireland, Italy, Luxemburg, Netherlands, Poland, Portugal, Spain, Sweden, Norway, Czech Republic and the United Kingdom. If you are a Business Owner in more than one country, please note that sales volume will not be combined for sales made in separate countries. Additionally, if you have a Business Owner Agreement with us in more than one country within the same brand, you may build a team under only one Business Owner Agreement. It is up to you to decide which country and corresponding Business Owner Agreement under which to build your team. You can sponsor internationally between countries provided you sign and return the Stella & Dot Family Brands ‘International Sponsorship Agreement’, which is located in your Lounge. Please note, this pertains to Mentors only.
Business Owners who sign up within the same brand in more than one country may not sponsor themselves.
For example, if a U.S. Stella & Dot Stylist chooses to build a team in the U.S., and also has the right to work in
the UK, she/he may sign a separate Business Owner Agreement in the UK and may sell there. However,
her/his UK Stylist account may not be sponsored by her/his own U.S. Stylist account.
10.3.2 – Multiple Business Owner Agreements within the Family of Brands
This is not applicable in Europe. At present, only US Business Owners are able to represent more than one
brand from Stella & Dot Family Brands.
10.4 - Solicitation of Overseas Business and International Sales
Due to complex legal and tax considerations involving international sales, you may not hold trunk shows in a
country in which you are not a Business Owner and in which you do not have a valid Business Owner
Agreement. Currently, Stella & Dot does not operate in any countries other than the U.S. (including Puerto
Rico), Canada, the United Kingdom, Germany, France and the Republic of Ireland, and not all brands are sold
in each of those countries. No physical trunk shows may be held outside these countries in which Stella & Dot
operates. The only exception to this pertains to Military Bases/Posts (please see Section 2.20 for more
information).
In addition to these countries, there are 13 countries within the EU where we can offer shipping when a
customer orders online via your Stella & Dot PWS. These 13 countries are: Austria, Belgium, Denmark,
Finland, Italy, Luxemburg, Netherlands, Poland, Portugal, Spain, Sweden, Norway and Czech Republic (the
“Shipping Countries”).
10.5 - Annual Automatic Renewal of Business Owner Agreement
We are excited to have you renew your Business Owner Agreement with us! Your Business Owner
Agreement will automatically renew every twelve months on the anniversary of the date you entered into a
Stella & Dot Family Brands Independent Business Owner Agreement.
Stella & Dot Family
44
By renewing, you agree to the latest terms in the Business Owner Agreement, for an additional twelve
months. The latest terms of the Business Owner Agreement can always be found in your Lounge.
If you are planning to self-terminate, please submit a Self-Termination form, found in your Lounge, at least
seven days prior to your renewal due date to allows us to make all the necessary changes in the system to
ensure you are self-terminated properly.
10.6 - E-Marketing Suite and/or Personal Website (PWS) Automatic Renewal
Business Owners are offered additional business tools, which vary by Brand, such as a PWS or an E-
Marketing Suite (which includes a PWS). The first 60 days of an E-Marketing Suite or PWS are absolutely
free! Before the 60-day free trial period ends, you can decide to cancel your services or keep them. If you
decide to keep them, on day 61, the credit card on file will automatically be charged the applicable fee,
depending on your brand and the option you selected when enrolling. The applicable fee after your free trial
will be automatically charged without notice to you – so please keep track of the number of days left on your
free-trial and plan accordingly.
If at any time, you decide to cancel your free sixty (60)-day trial, you will no longer have the option of
restarting or continuing your free sixty (60)-day trial where you left off.
If you choose to cancel your added services (such as E-Marketing Suite or PWS), you may enrol again at any
time via your Lounge; however, when enrolling again, please keep in mind that there is no guarantee that the
original PWS URL extension you initially requested will be available.
10.7 – Building Your Business Across Sister Brands and Participation in Other Direct Selling Companies
At any Career Rank, Business Owners are allowed to sell products and hold multiple agreements both across
the Stella & Dot Family Brands and also sell and engage in other direct selling companies at the same time.
If you choose to sell and build a team in multiple businesses, you must ensure your businesses are operated
entirely separate and apart from each other. In addition, you will need to continue to uphold your
responsibilities as an Independent Business Owner as outlined within the Stella & Dot Family Brands Policies
and Procedures.
Home Office believes you will be most successful when you focus solely on one business and not split time
between Sister Brands or companies. Should an Independent Business Owner choose to represent more than
one direct sales business, the below policies apply not only when the additional business is within the Stella
& Dot Family Brands but also when the additional business is outside of the Stella & Dot Family Brands.
Selling with Multiple Direct Sales Brands:
• Independent Business Owners may sell other brands regardless of their Stella & Dot Family Brands
Career Rank provided they meet the requirements of the Leadership Focus Policy (4.9) if they have a
Downline team, and are compliant with all Marketing and Confidentiality policies.
• Per the Non-Solicitation provision of your Business Owners Agreement and the Confidentiality
Obligations (10.10), you may not request people you’ve met through your Stella & Dot Family Brands
business to solicit sales for your other businesses, either within or outside of the Family.
Building Teams with Multiple Direct Sales Brands:
• Independent Business Owners who have a Downline team in a Stella & Dot Family Brand, may build a
Stella & Dot Family
45
team with their other Direct Sales business up to but not including the Career Rank of Associate Director and
above. Once you are paid at Associate Director level for the first time in one Brand, you will need to forfeit
your direct team with your other business or forfeit your Stella & Dot Family Brand Downline team. Please
ensure you are familiar with the Leadership Focus Policy (4. 9) for additional details.
• In the event your businesses are within the Stella & Dot Family Brands, Direct Teams cannot be
transitioned to Referral Team status. Once you sponsor a Direct Team within a brand, you forfeit all rights to
Referral Benefits in that brand. We recommend Business Owners focus direct sponsoring in one brand and
only build Referral Teams in Sister Brands.
• Per the Non-Solicitation provision of your Business Owners Agreement and the Confidentiality
Obligations (10.10) you may not request people you’ve met through your Stella & Dot Family Brands
business to recruit for your other businesses, either within or outside of the Family.
Marketing your Direct Sales Businesses:
• You may not co-mingle marketing for your other business(es) within the same Social Media Channels as
you market your Stella & Dot Family Brands business.
• You may not market your other business(es) on any social media channels dedicated to a Stella & Dot
Family Brand, either public or private. This includes, but is not limited to, Home Office managed public and
private Facebook groups and Team pages and groups managed by other Independent Business Owners.
• You may not solicit your new business (either for sales or recruitment purposes) at any Stella & Dot
Family Brands meet-ups or events.
Should you have specific questions about what is or is not within policy when building your business across
Sister Brands or with other direct selling companies, please reach out to your Field Relations team for
guidance.
10.8.1 - Non-Solicitation
Your Business Owner Agreement includes a legally binding non-solicitation clause with which you are
expected to comply for.
As part of your obligations under the Business Owner Agreement, a Stella & Dot Family Brands Independent
Business Owner may not use any contact information of another Stella & Dot Family Brands Independent
Business Owner gathered through their relationship as an Independent Business Owner, to solicit or recruit
for another direct selling business opportunity of any kind. This includes names and any associated contact
information, such as Facebook connections, emails and phone numbers.
Solicitation and/or recruiting includes, but is not limited to:
• Reaching out to other Independent Business Owners and asking them to join your other business;
• Mingling any Stella & Dot Family Brands with promotion of another direct selling company outside
the Stella & Dot Family Brands, including having a Stella & Dot Family Brands in your online profile
and promoting another business to Independent Business Owners under that profile;
• Creating a social media group for your other business, and inviting Stella & Dot Family Brands
Independent Business Owners into that group; and
Stella & Dot Family
46
• Asking a third-party or spouse to reach out to Business Owners on behalf of you or another direct
selling company’s behalf to share a product or opportunity.
Please note that if a Stella & Dot Family Brands Independent Business Owner joins your Downline team at
another direct selling business, we may view this as an indication that you have breached your non-
solicitation obligations and we may pursue legal remedies. If a Business Owner has joined your Downline
team at another direct selling business, please contact your Stylist Relations team.
10.8.2 - Non-Solicitation of Stella & Dot Employees
Stella & Dot Family Brands works hard to ensure it provides the best possible experience for its Independent
Business Owners. In order to make this possible, we recruit and train employees for your benefit. Because it
is expensive to recruit and train employees and critical for these employees to remain loyal to Stella & Dot
and to you, you are expressly prohibited, without Head Office’s prior written permission, from soliciting,
hiring, offering employment or compensation of any kind, or otherwise using any services of any Stella & Dot
Family employee outside of the scope of her/his employment during the term of their employment.
10.8.3 - Conflicts
Stella & Dot does not permit any person who is a principal of another direct selling company, or who has a
member of her/his immediate household who is a principal of another direct selling company, to serve as
Independent Business Owners or to become Independent Business Owners. For the purposes of this section,
principal shall mean any director, officer, executive, sole proprietor, general partner, or owner of 10% or
more of any outstanding stock in any business entity that conducts sales through a direct sales channel, or
controls or is under common control with any business entity that conducts sales through a direct sales
channel. Stella & Dot reserves the right to limit participation in Stella & Dot Family Brands events if an
Independent Business Owner or a member of her/his immediate household is an employee of another direct
selling company.
10.9 - Acts of Third Parties
For the purpose of these Policies & Procedures and the Business Owner Agreement, an Independent
Business Owner shall not through any third party, directly or indirectly, engage in any conduct or activity not
permitted by the Independent Business Owner. Without Limiting the generality of the foregoing you shall be
responsible for ensuring that these terms and policies are complied with by any third party acting as your
agent or under your direction or instructions, and you shall be held responsible for any breach of such terms
and policies by such third parties as if you had caused the breach and you will be subject to disciplinary
action or any of the other rights and remedies available to Stella & Dot in respect of such a breach.
10.10 - Confidentiality Obligations
Under the terms of your Business Owner Agreement, you agree to keep in strict confidence proprietary
information of Stella & Dot that we may make available to you for the express purpose of supporting you and
your personal team to further develop your Stella & Dot Family business, such as names, contact information
or any data pertaining to your customers, personal team or other Business Owners, Downline Genealogy
Stella & Dot Family
47
Reports, the identities of Stella & Dot Family Customers and Independent Business Owners, contact
information of Stella & Dot Family Customers and Business Owners, Business Owner’s Personal and Team
Volumes and Business Owner Career Title and/or achievement Levels, all of which constitute business trade
secrets. You must keep Stella & Dot Family customer or Independent Business Owner lists confidential and
must not make the lists available to third-parties, and you may not use these lists to perform services for a
competitor, such as promoting competing products or business opportunities either directly or through
social media. You agree that any wrongful disclosure of any information on the lists will cause immediate
and irreparable damage to Stella & Dot and that Stella & Dot may pursue all legal remedies available against
you if you are in breach of this provision.
In addition, you may not produce or reproduce, distribute or sell DVDs, videotapes, audiotapes and other
training materials bearing the brand and name of Stella & Dot or any Stella & Dot Family Brand. If you have
suggestions for training material, please submit your ideas to the Head Office by e-mailing the Marketing
Team.
10.11 - Targeting the Sales Force of Other Direct Selling Companies
As an Independent Business Owner, you must not share confidential information about other companies in
breach of your confidentiality obligations to third parties. Stella & Dot does not condone Business Owners
specifically or consciously targeting the sales force of another direct sales company to sell Stella & Dot
Family Brands products or to become an Independent Business Owner for Stella & Dot Family Brands, nor
does Stella & Dot condone Business Owners’ solicitation or enticement of members of the sales force of
another direct sales company to violate the terms of their contract with such other company. Should a
Business Owner engage in such activity, the Business Owner bears the risk of being sued by the other direct
sales company. If any lawsuit, arbitration or mediation is brought against a Business Owner by a third party
alleging that she/he engaged in inappropriate recruiting activity of its sales force or customers, or in any way
violated their contract with the third party, Stella & Dot will not pay any of Business Owner’s defence costs
or legal fees, nor will Stella & Dot indemnify the Business Owner for any judgment, award, or settlement.
Should the third party bring or threaten legal action against Stella & Dot based on the conduct of the
Business Owner, the Business Owner agrees that it shall indemnify Stella & Dot for all judgments,
settlements, payments of any other nature, litigation costs, and attorney’s fees that Stella & Dot incurs in
relation to such legal action or threat of legal action.
10.12 - Partnerships
To fully acknowledge your work as an Independent Business Owner, we only recognize one name per
Business Owner Agreement. As an Independent Business Owner, you may utilize a support person in your
business. However, the individual who holds Sales Events and has regular customer contact shall only be the
individual whose name is on the Business Owner Agreement. If you engage or allow any other person to hold
Sales Events or have regular customer contact other than in your name, Stella & Dot shall have the right to
immediately terminate your Business Owner Agreement, and/or employ such sanctions as it sees fit.
We do not accept Business Owner Agreements from partnerships, teams, couples or corporations. Business
Owner Agreements are valid only between Stella & Dot and an individual. Regardless of relationship, marital
Stella & Dot Family
48
or family status, you may reside at the same address as another Stella & Dot Family Brands Independent
Business Owner, or have another Independent Business Owner in your immediate family, provided that:
1. you run your business entirely independently of that other Independent Business Owner; and
2. you do not directly or indirectly sponsor that other Independent Business Owner, nor may you both
be sponsored within the same Family Tree.
10.13 - Licenses*
* Not applicable in E.U. [Intentionally left blank]
10.14 - Independent Status and Non Exclusive Territories
Becoming a Business Owner does not create any employment relationship, partnership, distributor or joint
venture partnership between you and Stella & Dot, nor does the entry into the Business Owner Agreement
constitute the sale of a distributorship, a franchise or a licence. No fiduciary relationship exists between us as
a result of you being a Business Owner.
You are not permitted to conduct sales or sponsoring for exclusive territories or customers, and any
attempts to make out that this is the case shall be invalid.
10.15 - Bank Accounts
As a Stella & Dot Family Brands Independent Business Owner, you may not use the trademark or trade name
Stella & Dot Family Brands, Stella & Dot on bank accounts, credit applications with local suppliers or other
business forms. Checking accounts can simply be designated as “Business Accounts”, or if you need to list a
business use your name and Stella & Dot Family Brands Independent Business Owner. The intent of this is to
avoid any implication that an Independent Business Owner’s business is the Head Office.
10.16 - Third Party Consumers
Independent Business Owners who cultivate business contacts must remember that a third party or a
company can purchase Stella & Dot Family Brands products as gifts for its employees or clients, but there
may not be a resale value attached to the products. Independent Business Owners cannot become a “vendor”
to another business. Independent Business Owners who sell product to a business for gifts must include a
personal letter with each gift that provides information about how the end-user can receive personal service
from the Business Owner. Large-scale sales of Stella & Dot Family Brands product to regional or national
companies are prohibited since they do not lend themselves to the development of personal relationships
and personal service that Stella & Dot Family Brands is based upon.
10.17 - Customer Cancellation
European regulation requires that every customer who generates an order or makes a purchase from you
must receive a copy of the ‘Cancellation Policy’ (found on the back of the Order forms).
Stella & Dot Family
49
Orders that are placed on our corporate website may only be cancelled up to ten minutes after the order is
placed provided it is within Business Hours in the UK and it is not already being processed. If a customer
wishes to “cancel” an order that is already being processed, please arrange a return, which will allow the
customer to receive a refund in accordance with our return policy.
10.18 - Proof of Liability Insurance
If you have a Trunk Show at an office or commercial venue, you may be required to provide proof of general
liability insurance. Stella & Dot have sourced a basic public liability insurance policy, the details of which can
be found under ‘My Business’ > ‘Insurance’ on your Stylist Lounge. We also recommend you consider
speaking with your insurance broker about whether or not you need coverage for a small and/or home-
based business. If you are using a vehicle for your business, you should also discuss whether your policy
covers business use.
10.19 - Charity Requests
Occasionally, we are asked to participate in charitable events coordinated through our Marketing and Public
Relations Departments. Business Owners who wish to submit an event for consideration can submit all
relevant details to [email protected]. Please note that generally speaking, Stella & Dot will defer
local-area charitable events to be sponsored by local area Business Owners.
Most events that Stella & Dot sponsors are at the national level. In the event that we agree to a Sales Event
presence at a charitable event, all Business Owners within 25 miles of the event location who are Career
Rank of Director and above will be approached with the opportunity to team-up or pass-on the event.
Directors will be encouraged to donate their commissions to the charity while maintaining the benefit of
PQV, prospective Business Owner or future Sales Event Leads.
10.20 – Charitable Commitments Responsibilities
Independent Business Owners must at all times conduct her/his Stella & Dot Family Brands business in a
manner that reflects favourably on Stella & Dot Family Brands and the good name, goodwill and reputation
of Stella & Dot Family Brands and our products. If you agree to obligations or commit to promises with
customers, hostesses, or members of the public and fail to fulfil your personal obligations, such failure may
result in tarnishment of Stella & Dot Family Brands’ reputation and goodwill and/or subject Stella & Dot
Family Brands to potential liability. Any failure to fulfil commitments made to third-parties in connection
with your Stella & Dot Family Brands business shall constitute a breach of your Stella and Dot Family Brands
Independent Business Owner Agreement, and will result in immediate termination of your Business Owner
Agreement.
Stella & Dot reserves our right to all available legal remedies, including but not limited to, withholding any
payments owed to you in order to remedy any actual losses relating to the breached obligation(s).
10.21 - Stella & Dot Foundation
The proceeds from the sale of our Foundation products are allocated to our affiliated charities are purchased
through only Sales Event Orders, Customer Orders or Business Owner Personal Product Orders (i.e.
Stella & Dot Family
50
Foundation products redeemed using Hostess Rewards or purchased using your Business Owner Sample
Discount, do not carry proceeds for donation).
10.22 - Amendments
Stella & Dot may amend its documents and business practices, including, but not limited to: 1) the Business
Owner Agreement, 2) the Compensation Plan, and 3) these Policies & Procedures at any time and in its sole
discretion in accordance with clause [20] of the Business Owner Agreement as Stella & Dot deems
appropriate. Stella & Dot may also amend its product prices and product and service availability at any time
as Stella & Dot deems appropriate. Amendments will be communicated to you through official Company
publications, including websites or email. Amendments are effective and binding on all Independent
Business Owners and their continued service as Independent Business Owners constitutes their acceptance
of same. In the event of any conflict between the original documents and policies and any such amendment,
the amendment will control.
10.23 - Grievances and Complaints
If you have a grievance or complaint about another Business Owner that you are unable to resolve regarding
any practice or conduct related to the Stella & Dot Family Brands business, please submit an email describing
the situation to Stylist Relations for review.
10.24 - Reporting Policy Violations
If you observe a violation of the Stella & Dot Family Brands Policies & Procedure by another Stella & Dot
Family Brands Independent Business Owner, please submit an email to your applicable Compliance team
describing the circumstances, evidence and any other pertinent information.
10.25 - Company Address information
Stella & Dot UK, 20 Broadway Studios, London, W6 7AF
Contact via web: Enquiries may be submitted from our official website through our Contact Us page:
http://www.stelladot.co.uk/help
http://www.stelladot.eu/contactsd
SECTION XI - DISPUTE PROCEEDINGS AND RESOLUTION
11.1 - Sanctions for Breaching the Business Owner Agreement
If you breach the terms of your Business Owner Agreement or these Policies & Procedures, or if Stella & Dot
determines that you have engaged in or are engaging in any illegal, fraudulent, deceptive, or unethical
business conduct, you may be subject, at Stella & Dot’s discretion, to one or more of the following corrective
measures:
a. A written warning, clarifying the meaning and application of a specific policy or procedure,
and advising that a continued breach will result in the imposition of further sanctions;
Stella & Dot Family
51
b. A requirement that you take immediate corrective measures and follow-up monitoring by to
ensure compliance;
c. Imposition of a fine or other penalties permitted by law;
d. Suspension of certain privileges of a Business Owner for a specified period of time or until
certain conditions are satisfied;
e. Withdrawal or denial of an award, denying recognition in the Company Magazine or Stylist
Update or other official publication, or restricting participation in the Company sponsored
events for a specified period of time or until certain conditions are satisfied;
f. The removal of a frontline Business Owner and their Downline team from your Downline
team; or
g. Immediate termination of your Business Owner Agreement.
To the extent permitted by applicable law, Stella & Dot may withhold bonuses and commissions during its
investigation into potential or alleged misconduct related thereto and, if your Business Owner Agreement is
terminated, Stella & Dot may withhold any amounts due and owing to Stella & Dot. If your Business Owner
Agreement is terminated, you will not be entitled to any commission or bonus not earned as of the date of
your termination. Stella & Dot may institute legal proceedings for monetary and/or equitable relief at its sole
discretion.
11.2 - Alternative Dispute Resolution
Any and all disputes will be resolved in accordance with Section 25 of the Business Owner Agreement.
SECTION XII – DOWNLINE LOSS, DOWNLINE RESTORATION, AND ACCOUNT CANCELLATIONS
12.1 - Effects of Voluntary or Involuntary Cancellation
As long as you remain current and comply with the terms of the Business Owner Agreement and these
Policies & Procedures, Stella & Dot Family Brands will pay you bonuses and commissions in accordance with
the Compensation Plan. Your bonuses and commissions constitute the entire reward for your efforts in
generating sales and all activities related to generating sales — including building and nurturing your
Downline organization.
If your Business Owner Agreement is voluntarily cancelled or involuntarily terminated, you will only receive
bonuses and commissions earned as of the date of your termination as a Business Owner (less any amounts
withheld during as due and owing to Stella & Dot Family Brands as permitted by applicable law). Upon the
cancellation of your Business Owner Agreement, you shall be deemed to have waived all of your rights, title,
claim, or interest to the Downline organization that you operated, and to any leadership bonuses from the
sales generated by that organization that were not earned by you prior to termination. Additionally, you will
lose the right to represent Stella & Dot Family Brands, the right to sell Stella & Dot Family Brands products,
Stella & Dot Family
52
and the right to receive future commissions, bonuses, or other income resulting from Stella & Dot Family
Brands activities.
12.2 - Downline Restoration
Requests for restoration of Downline must be submitted to Stylist Relations by email before the end of the
month the Downline was lost. Requests received after the month in which Downline loss occurred will not be
considered. Stylist Relations will contact all affected Upline members to gain approval to restore the
Downline. All affected Upline members must agree or the Downline will not be restored.
SECTION XIII. INTERNATIONAL
13.1 - International Sponsorship
Where applicable, you are welcome to sponsor between North America, the United Kingdom, Germany,
France or Ireland, but you must sign and return the Stella & Dot Family Brands ‘International Sponsorship
Agreement’ (ISA), which is located in the International section of your Lounge. Signing this agreement helps
ensure that the Business Owners on your team receive top-notch support from you, while recognizing the
differences associated with international Sponsorship, including different incentives or promotions,
languages, time zones, etc.
Stella & Dot Family
APPENDIX A
Contact Details by Brand
Head Office Stylist Relations
• Stella & Dot: [email protected]
Marketing & PR
Field Development
• Stella & Dot: [email protected]
