Congratulations on your decision to join Herbalife!
We believe our science-based products are the best and the Herbalife business opportunity is unrivaled in the directselling industry. We are especially proud to offer what we believe to be the Gold Standard in consumer protection for all our new Distributors. Please take the time to review the Gold Standard Guarantees. They provide valuable information that will help ensure your Herbalife Distributorship experience is a positive one!
1) There are no minimum purchases required and start-up costs are low.
2) There is a fully refundable, 12-month moneyback guarantee for the cost of the International Business Pack if Distributorship is canceled for any reason, including the shipping cost to return the Pack. To obtain a refund, Distributors may call Herbalife at 866-866-4744 or submit the refund form available at MyHerbalife.com (http://hrbl.me/InventoryRefund).
3) There is a 100% refund guarantee on unopened products, including taxes and handling costs, that were purchased in the previous 12 months if Distributorship is canceled for any reason. The cost of shipping, both the initial delivery and return shipping, will also be refunded. To obtain a refund, Distributors may call Herbalife at 866-866-4744 or submit the refund form available at MyHerbalife.com (http://hrbl.me/InventoryRefund).
4) There is no requirement to purchase any sales and business tools to start up or succeed in your Herbalife Distributorship.
5) We clearly define the benefit of each product and appropriate method of use directly on the product label – we want to make absolutely sure that the right products are taken the right way to achieve realistic results. We provide realistic expectations of the business opportunity and the effort required to succeed at all levels.
6) We provide clear, accurate, and timely disclosures to prospective Distributors regarding potential income.
Herbalife takes pride in the policies we have in place to protect all of our Distributors.
Please review the Gold Standard Guarantees and check each box to acknowledge that you have read and understand each item.
1. Becoming a Distributor: Thank you for applying to become an Herbalife Independent Distributor (“Distributor”). You will become a Distributor only when we (Herbalife International of America, Inc.) accept your application and your Distributorship is entered into our records.
The terms and conditions of our Agreement are found in this application, the Sales and Marketing Plan, Rules of Conduct (“Rules”) and other documents posted on MyHerbalife.com and contained in Book 4 in your International Business Pack (“IBP”) (collectively the “Materials”). We may revise the Materials from time to time in our discretion, so we encourage you to regularly visit MyHerbalife.com. You acknowledge that you will be required to successfully complete Herbalife Distributor training in order to purchase Herbalife® products for resale, recruit others to become Herbalife Distributors or Preferred Members, or receive multi-level compensation from Herbalife.
2. Prior Distributorship or Preferred Membership: If you and your spouse have never participated in an Herbalife Distributorship or as a Preferred Member please skip to 3 below. If you or your spouse owned or participated in an Herbalife Distributorship in the past year, you may not apply for a new Distributorship under a different Sponsor until twelve (12) months from the date you last participated in the Distributorship, or your Distributorship was terminated, whichever is later.
For any prior Distributorships, please provide the information requested below:
Your or/Spouse’s Prior Distributorship ID: Name:
Application Date: / / . Date of last activity in connection with that Membership / / .
Month Day Year Month Day Year
If you or your spouse were an Herbalife Preferred Member in the past year, you may not apply for a Distributorship under a different Sponsor until twelve (12) months from the date your Membership was terminated. For any prior Preferred Membership, please provide the information requested below:
Prior Membership ID: Name:
Application Date: / / . Date of termination of Preferred Membership / / .
Month Day Year Month Day Year
3. International Business Pack: Along with this application you purchased and received from Herbalife a new, unopened IBP. If you resign your Distributorship for any reason within twelve (12) months of the date Herbalife accepted this application, you are entitled to a full refund of the cost of the IBP, including shipping costs if we ask you to return the IBP. To obtain a refund you may call Herbalife at 866-866-4744 or submit the refund form you will find at MyHerbalife.com (http://hrbl.me/InventoryRefund).
4. Term: The term of the Agreement will be one year from the date this application was accepted by us, renewable annually, so long as you comply with certain requirements such as payment of an Annual Services Fee, or completion of additional business training. You may cancel your Distributorship at any time by notifying Herbalife in writing at [email protected]. You may also contact Herbalife at 866-866-4744 for more information. Herbalife may terminate your Agreement if it determines that you or others participating in your Distributorship have violated the Agreement.
5. Inventory Refund: If you decide to resign your Distributorship for any reason at any time, you are entitled to a full refund for any unopened product you purchased during the previous twelve (12) month period. The amount you will be refunded includes the cost of the product, any taxes you paid on the purchase, and the cost of shipping, both the initial delivery and return shipping costs. To obtain a refund please call Herbalife at 866-866-4744 or submit the refund form you may find at MyHerbalife.com (http://hrbl.me/InventoryRefund).
6. Self-employed: As a Distributor you are a self-employed independent contractor deciding, among other things, your schedule, how much time you wish to devote to your business, your expenses and methods of operation. As an independent contractor you are not an employee, agent, franchisee, fiduciary or beneficiary of Herbalife or any other Distributor. You acknowledge that as an independent contractor, you will have no rights or benefits that an employee of Herbalife may have nor will you make any claim to the contrary.
B UNDERSTANDING THE HERBALIFE BUSINESS OPPORTUNITY
1. Diligent Inquiry: A successful Herbalife Distributorship involves hard work, diligence and development of business skills as your business grows.
You agree to carefully review the Materials so you will be informed about the potential risks, benefits and Rules applicable to your Distributorship.
2. Compensation You Might Earn: The Statement of Average Gross Compensation is the only authorized representation of Distributor earnings, and you acknowledge that you are not relying upon any other written or oral information or representations about the financial results you might achieve.
You are aware that you will earn no compensation or other economic benefit solely by enrolling or recruiting other Distributors. If you choose to build and maintain a sales organization by sponsoring other Herbalife Distributors, you may receive payments from Herbalife based, among other things, on those Distributors’ profitable retail sales to their customers. This multi-level compensation opportunity is detailed in Herbalife’s Sales & Marketing Plan, which is available in Book 4 in your IBP and at MyHerbalife.com (http://hrbl.me/enUS-SMP).
3. The Only Required Purchase: The only required purchase to become an Herbalife Distributor is the IBP. All product purchases are optional. You are never required to purchase a minimum quantity of products, maintain an inventory, or attend meetings or events. Herbalife believes that you can advance in the Sales and Marketing Plan without incurring debt. For more information, please see The Policy Statement on Expenditures by New Distributors found in Book 4 and at MyHerbalife.com (http://hrbl.me/PolicyStatement).
4. Sales Aids and Business Tools: We do not recommend that you purchase sales aids. In addition, you may not buy or sell, in any manner, sales leads or leads-related advertising. For more information please see the Corporate Policy Statement on Sales Aids and Business Tools found at MyHerbalife.com (http://hrbl.me/SalesAidsBusinessTools).
5. Sale of Products: By becoming a Distributor you are representing the Herbalife brand, and you agree that you will promote the sale of Herbalife® products only in a manner that enhances the reputation of Herbalife, your business and the Herbalife businesses operated by other Distributors. Your advancement will only come from sales of Herbalife® product by you, or other Distributors that you might sponsor, to retail customers for their genuine consumption.
C INTELLECTUAL PROPERTY AND CONFIDENTIAL INFORMATION
1. Limited Revocable License: You are hereby granted, during the term of your Distributorship, a limited, revocable license to use Herbalife’s trade name, logo, trademarks and certain intellectual property only to the extent expressly permitted under the terms of the Agreement or otherwise by Herbalife in writing, and only in connection with the conduct of your Distributorship and for no other purpose.
2. Confidential Information: During the term of your Distributorship, you and your spouse will hold in strict confidence and trust for the exclusive benefit of Herbalife any trade secrets, formulas, business plans, customer lists, Distributor information, or any other confidential or proprietary business information, and any other information of commercial value provided by Herbalife (“Confidential Information”). You acknowledge and agree that you will not use Confidential Information, directly or indirectly, for any purpose other than the conduct of your Herbalife Distributorship and you will take reasonable care to protect Confidential Information.
3. Use of Your Image: You hereby authorize Herbalife to record your image at Herbalife events and you grant to Herbalife a limited license to use your name, photograph, video image, personal story and information that you provide to Herbalife, in Herbalife promotional or other materials. You hereby waive all claims for payment for such use.
D MISCELLANEOUS LEGAL PROVISIONS
1. Transfers: Your Distributorship, or any interest in your Distributorship, may not be transferred or assigned unless authorized in writing by Herbalife in its sole discretion as provided in the Rules. Herbalife may assign this Agreement in its discretion.
2. Non-Solicitation: While you are a Distributor, neither you nor your spouse may solicit or promote the products or business opportunity of another multi-level marketing or direct-selling company to any Herbalife Distributor, Preferred Member or customer.
3. Representations and Warranties: You represent and warrant that you have not been convicted of a crime involving dishonesty, moral turpitude, or violence to others. You acknowledge and agree that you are applying to become an Herbalife Distributor solely for the business opportunity and use of Herbalife® products and not for any other purpose.
4. Damages: To the fullest extent allowed by applicable law, neither party shall be liable to the other for any incidental, consequential, special, exemplary or punitive damages under any legal or equitable theory, regardless of whether the possibility of such damages is known by either party.
5. Waiver and Delay: No failure, refusal or neglect of Herbalife to exercise any right, power or option under this Agreement with you or any other Distributor shall constitute a waiver of the provisions or a waiver by Herbalife of its rights at any time under the Agreement.
6. Severability: Except as otherwise provided in paragraph 2 of the Arbitration Agreement, if any provision in the Agreement is found to be invalid, illegal, or unenforceable in any respect, it shall be severed from the Agreement and have no effect on the remainder of the Agreement, which shall remain in full force and effect. Further, there shall be added automatically as part of the Agreement a provision as similar as possible to the severed provision that would be legal, valid, and enforceable.
7. Choice of Law: The Agreement, and any dispute arising from the relationship between you and Herbalife, shall be governed by California substantive law without the application of conflict of law principles, except that the interpretation and enforcement of the Arbitration Agreement shall be governed by federal law.
8. Indemnification: You will indemnify, defend and hold Herbalife harmless from any suit, action, demand, prosecution or claim, including all costs, liabilities and damages, relating to or arising from your breach of the Agreement or the conduct of your Herbalife Distributorship. Herbalife may, among other things, offset amounts you are owed to satisfy any obligations arising under this indemnity.
9. Claims Between Distributors: Herbalife shall not be liable to you for any cost, loss, damage, or expense suffered by you directly or indirectly as a result of any act, omission, representation, or statement by another Distributor.
10.Binding Terms: The Agreement shall be binding upon and inure to the benefit of the parties, their heirs and permitted successors in interest.