1. Purpose and Scope

These Rules and Regulations (“Rules”) explain the rights, responsibilities, and relationship between Success Formula International Marketing Corporation (SFIMC) and its Independent Business Owners (IBOs).

These Rules are created to promote:

• Ethical business practices;
• Compliance with company policies and applicable laws;
• Protection of the SFIMC brand and reputation; and
• Fair and sustainable business growth.

By registering and continuing as an IBO, you agree to follow these Rules, including future updates and amendments made by SFIMC.

2. Eligibility and Enrollment

2.1 Qualifications

Any individual aged eighteen (18) to sixty-five (65) years old may apply as an IBO by:

• Purchasing an official SFIMC Business Package;
• Completing and submitting the required Application Form;
• Presenting a valid government-issued ID and Tax Identification Number (TIN).

2.2 Sponsorship Requirement

All applicants must be sponsored by an active SFIMC IBO.

2.3 Company Rights

SFIMC reserves the right to reject, suspend, or return any application that is incomplete, inaccurate, or violates company policies.
SFIMC shall not be responsible for lost commissions, incentives, or benefits caused by incorrect information, failure to comply with policies, or application errors made by the applicant.

3. Ethical Recruitment

IBOs must conduct all recruitment and sponsorship activities honestly, ethically, legally, and professionally.

Any form of manipulation, deception, policy circumvention, or unfair recruitment practice is strictly prohibited.

3.1 Prohibited Recruitment Practices

The following acts are strictly prohibited:

a. Coercion or Undue Pressure

Using intimidation, emotional pressure, authority, financial pressure, religious influence, or personal relationships to force or pressure someone to join, invest, or participate against their own free decision.

b. False or Misleading Statements

Giving false, exaggerated, or misleading information regarding:

• Income potential;
• Guaranteed earnings or risk-free income;
• Rank advancement;
• Product claims or approvals;
• Company stability or endorsements.

c. Abuse of Relationships

Using family, friendship, professional, religious, or organizational relationships in a way that unfairly influences a person’s decision to join or invest.

d. Poaching, Proxy Registration, and Sponsorship Circumvention

Any act intended to transfer, redirect, or take an existing SFIMC member or business volume from another sponsor or organization is strictly prohibited.

This includes, but is not limited to:

• Encouraging an existing IBO to invest additional capital to create another account under a different name;
• Registering family members, relatives, household members, or other persons using the money, control, or management of an existing IBO;
• Creating accounts to bypass sponsorship rules or organizational structure;
• Hiding the true owner, controller, or funding source of an account;
• Encouraging an existing IBO to stop using one account while operating another account under a different organization.

These acts are considered poaching, organizational manipulation, and abuse of the Compensation Plan.

e. Recruitment After Refusal

IBOs must stop contacting or recruiting any person who has already declined participation or requested no further communication.

4. Investigation and Enforcement

SFIMC may investigate any complaint, suspicious activity, or possible policy violation.

The investigation may include:

• Review of registration records and transaction history;
• Review of payment sources and account activity;
• Examination of relationships between accounts;
• Interviews and written statements from involved parties.

If SFIMC finds evidence that:

• An existing member funded or controlled another account; or
• Family-member or proxy registrations were used to bypass company rules;

such acts may be treated as evidence of unethical recruitment and poaching.

5. Sanctions and Penalties

Violations of company policies may result in one or more of the following actions:

• Suspension of commissions, incentives, or rewards;
• Temporary freezing of accounts or organizational volume;
• Forfeiture of pending or earned commissions;
• Downgrade of rank or account privileges;
• Permanent termination of IBO status;
• Disqualification of accounts or downlines;
• Permanent disqualification from future participation in SFIMC.

Penalties may still apply even if:

• No financial loss occurred; or
• The involved persons gave consent or voluntarily participated.

6. Non-Waiver Policy

An IBO remains responsible for policy violations even if:

• The recruited person agreed voluntarily;
• The recruited person did not complain; or
• The recruited person claims lack of knowledge.

Withdrawal of a complaint does not automatically remove liability or stop the company investigation.

SFIMC reserves the right to continue investigations and impose disciplinary actions based on company findings and available evidence, subject to applicable laws.

7. Independent Contractor Relationship

IBOs are independent business owners and are not employees, agents, partners, or representatives of SFIMC.

Each IBO is personally responsible for:

• Business expenses;
• Taxes, permits, and licenses;
• Compliance with applicable laws and regulations.

8. Business Operations

8.1 Sales and Inventory

Excessive product purchasing for rank advancement, incentives, or artificial volume generation is prohibited.

Product returns shall follow official company return policies and product condition requirements.

8.2 Territory and Distribution

IBOs may operate nationwide while respecting:

• Company-approved outlets;
• Official distribution policies;
• Company operational guidelines.

8.3 Compensation

Commissions and incentives are earned only through legitimate product sales and organizational performance under the official Compensation Plan.
Cross-recruiting, poaching, or manipulation of organizational structure may result in disciplinary action, including termination.

9. Sponsorship Responsibilities

Sponsors are responsible for giving accurate and honest orientation regarding:

• Company policies;
• Compensation Plan;
• Ethical business practices.

Misrepresentation, false promises, or unethical recruitment methods are strictly prohibited.

10. Active Status and Inactivity

10.1 Active Status

An account is considered Active when it meets the minimum activity requirements under the current Compensation Plan and company policies.

10.2 Inactive Independent Business Owner (IIBO)

If an IBO account does not earn any Match Bonus for Three Hundred Sixty (360) consecutive calendar days, the account will automatically become an Inactive Independent Business Owner (IIBO).

Once tagged as inactive:

• Account privileges may be suspended;
• Commissions, incentives, or rewards may be forfeited;
• Rank or organizational status may be downgraded.

The IBO will be given Ninety (90) calendar days from the date of inactivity to reactivate the account.

10.3 Reactivation of Inactive Accounts

To reactivate an inactive account within the 90-day reactivation period, the IBO must:

• Pay the Reactivation Fee of One Thousand Five Hundred Pesos (₱1,500.00); and
• Comply with additional company requirements, if any.

Failure to reactivate the account within the allowed period may result in permanent deactivation and loss of organizational privileges.

11. Branding, Marketing, and Intellectual Property

11.1 Use of Company Materials

SFIMC logos, trademarks, marketing materials, and other proprietary content may only be used with written company approval.

11.2 Business Name Restrictions

IBOs are prohibited from using the company name, logo, or similar variations in personal businesses, stores, websites, or organizations without authorization.

11.3 Media and Public Statements

All media inquiries and public statements regarding SFIMC must be referred to authorized company representatives.

12. Training and Education

All training materials, seminars, modules, and presentations must:

• Follow SFIMC mission, vision, and policies;
• Accurately explain the Compensation Plan;
• Receive prior approval from company management.

13. Product Integrity and Pricing

Products must be sold in original condition and according to official Standard Retail Pricing (SRP).

The following are strictly prohibited:

• Product tampering;
• Alteration of serial numbers;
• Unauthorized repacking;
• SRP violations.

Serious violations may result in immediate termination.

14. Commissions, Claims, and Expiry

14.1 Commission Claim Period and Stale Rewards

All commissions, incentives, rewards, checks, and electronic credits must be claimed within One Hundred Eighty (180) calendar days from the date they are earned and reflected in the SFIMC system.

The 180-day period starts immediately once the commission or reward appears in the account.

Any unclaimed, unused, or unencashed commission or reward beyond 180 calendar days shall automatically become a Stale Reward and shall:

• Expire permanently;
• Be forfeited;
• Become non-redeemable; and
• No longer qualify for reinstatement, replacement, conversion, or future claims.

SFIMC shall not be liable for expired or forfeited rewards caused by failure to claim within the allowed period.

14.2 5th Pair E-Voucher Expiry

All 5th Pair E-Vouchers are valid for Ninety (90) calendar days from the date they are issued and reflected in the system.

Any unused E-Voucher after the 90-day validity period shall:

• Expire automatically;
• Be permanently forfeited; and
• Become invalid and non-redeemable.

Expired E-Vouchers cannot be:

• Converted to cash;
• Reissued;
• Revalidated;
• Reinstated; or
• Transferred.

14.3 Non-Transferability

Commissions, incentives, rewards, and E-Vouchers are personal to the registered IBO and cannot be sold, transferred, assigned, or claimed by unauthorized persons unless approved by SFIMC or required by law.

15. Commission Payment Policies

Commission payments shall follow official company schedules, cut-off periods, verification procedures, and finance policies.

SFIMC reserves the right to:

• Change payment schedules;
• Modify verification procedures;
• Update payment methods and transaction limits.

Unauthorized claims, false information, or third-party encashment attempts may result in investigation, suspension, or termination.

16. Grounds for Termination

SFIMC may suspend or terminate an IBO account for violations including, but not limited to:

• Fraud or misrepresentation;
• System abuse;
• Product or pricing violations;
• Cross-recruiting or poaching;
• Creation of fake or fictitious accounts;
• Unauthorized use of company materials;
• Conduct damaging to SFIMC reputation, operations, or interests.

17. Disciplinary Procedures

SFIMC reserves the right to:

• Conduct investigations;
• Suspend commissions during investigations;
• Require written explanations;
• Impose disciplinary actions from warning to permanent termination.

Company decisions after investigation shall be final, subject to applicable laws.

18. Succession, Death, and Legal Matters

Claims involving deceased IBO accounts require valid notarized legal documents.

Unclaimed or unresolved accounts may revert to SFIMC according to company policy.

All legal disputes shall be governed by Philippine laws and handled exclusively by the proper courts of Davao City.

19. Operational Restrictions

IBOs may operate only through:

• Home-based operations; or
• Company-authorized outlets.

Selling through unauthorized third-party stores, retailers, or establishments is prohibited unless approved by SFIMC.

All IBOs must strictly follow company pricing and operational policies.

20. Amendments and General Provisions

SFIMC reserves the right to revise, amend, or update these Rules at any time with reasonable notice.

Failure of SFIMC to immediately enforce any provision does not mean the policy is waived or permanently removed.

Compliance Contact

sfimc.info@gmail.com
0936-3178-110
Davao City, Philippines

Declaration

These Rules and Regulations are issued to protect SFIMC, its IBOs, customers, and the general public. All policies shall be implemented fairly, consistently, and in good faith.