Coral Club is an international brand that provides high-quality products to those who choose health, activity, and longevity. For those who have also chosen Coral Club as their business partner and have decided to strive for financial independence, this is a unique opportunity to start a business using a level of investment that they have chosen for themselves.
In order to apply to become a Distributor, you need to:
Except for the purchase of a Distributor Kit, you are not required to purchase Coral Club products, services or sales aids, or to pay any charge or fee to become a Distributor. In order to familiarize new Distributors with Coral Club products, services, sales techniques, sales aids, and other matters, the Company requires that applicants purchase a Distributor Kit. The Company will repurchase Currently Marketable Distributor Kits, from any Distributor whose Contract is terminated, pursuant to the terms of section 8.2.
1. Age requirement
You must have reached the age of majority, usually eighteen (18) years of age, in the jurisdiction in which you reside.
2. Legal residency
You must provide proof of residency and the ability to legally conduct business in the USA.
3. Tax payer identification number
All Distributors are required to provide the Company with their correct Social Security Number.
You become a Distributor upon the acceptance of your completed documentation. Coral Club, at its sole discretion, reserves the right to accept or reject any application to become a Distributor.
A business entity may apply to become a Distributor by following all the procedures outlined in Section 2 and additionally filling out a Business Entity Addendum as well as IRS form W-9. Each Affiliated Individual in the business must qualify under Section 2-2 and must be listed on the Business entity Addendum. Bonuses will be issued in the name of the business Entity and it is the responsibility of the business entity participants to properly distribute the bonuses among its members.
Business Entity Dissolution
Coral Club is not able to divide commissions among multiple parties, nor is it able to divide a downline organization. Consequently, if a business entity that operates a Coral Club Distribution Agreement dissolves, the owners of the business entity must instruct the Company on the identity of the proper party who is to receive the rights to the Distribution Agreement. The rights to the Distribution Agreement will be awarded to a single individual or entity that was previously recognized by the Company as an owner of the business entity; the Company cannot divide the rights to the Distribution Agreement among multiple parties or issue separate commission payments. In addition, the recipient of the rights to the Distribution Agreement must also execute and submit a Coral Club Distributor Agreement to the Company within 30 days from the date of the dissolution of the business entity or the previous Distribution Agreement will be cancelled.
An individual may own, operate, control, or have interest in only one Coral Club Distributor Agreement and no individual may have, operate or receive compensation from more than one Coral Club Distributor's Agreement. Individuals of the same household may not enter into or have an interest in more than one Coral Club Distributor Agreement. A “household” is defined as all individuals who are living at the same address and who are related by blood, marriage, domestic partnership, or adoption, or who are living together as a family unit or in a family-like setting. Notwithstanding the foregoing, each of the adults in a household may each have their own Coral Club Distributor Agreement provided they each sponsor the other. For example, if each of the adults in a household wish to operate under their own Coral Club Distributor's Agreement, they may do so as long as one of them is the sponsor of the other.
In addition, spouses, parents, children, and siblings who do not reside in the same household must also be sponsored by each other. All such family members must be related by sponsorship as well.
You can only hold an ownership or beneficial interest in one Distributor's Agreement at a time. Except as provided in Section 2-9, no individual may have, operate, or receive compensation from more than one distributorship.
If any member of a Distributor’s immediate household engages in any activity which, if performed by the Distributor, would violate any provision of the Agreement, such activity will be deemed a violation by the Distributor and the Company may take disciplinary action against the Distributor.
Privacy of Distributor Information
As a result of becoming a Distributor, the Company will need to collect certain personal information about you. Some of the reasons that information is collected include (1) evaluating your Distributor Application and Agreement; (2) providing services to you; (3) providing you with support; (4) improving the products and services that the Company offers; (5) communicating with you regarding products and promotional offers, your organization, bonuses, etc.; (6) compliance.
The Company may need to share your information with its partners, Distributors in your Upline or Downline, service providers, government agencies, or regulatory bodies if required by law.
The Company respects Distributors’ right to privacy and is committed to protecting it. it. The Company does not sell any information to third parties, will take appropriate measures to keep your information confidential, and will only share information that is necessary in the framework of our regular business.
Use of Confidential Information
In the course of conducting business as a Distributor, you may acquire Confidential Information that belongs to the Company. Such Confidential Information includes, but is not limited to, the identities of Coral Club Members and Distributors, contact information of Members and Distributors, Distributors’ Personal and/or Group Volumes, and Distributor rank and/or achievement levels. Confidential Information is, or may be available, to Distributors in their respective Back-Offices. Distributor access to such Confidential Information is password-protected, and such Confidential Information constitutes proprietary business trade secrets belonging to the Company. Regardless of the source of the Confidential Information, you acknowledge and agree to the following:
1. The Confidential Information is for the exclusive and limited use to facilitate the training, support, and servicing of your Downline Organization for furtherance of Distributor Business only;
2. You will not disclose the Confidential Information to a third party directly or indirectly (including other Distributors) and that doing so constitutes misuse, misappropriation, and a violation of the Agreement;
3. The information is of such character as to render it unique and that disclosure of it will cause irreparable damage to the Company; the Company is therefore entitled to immediate, temporary, preliminary, and permanent injunctive relief, in addition to all other remedies available in law or equity, to prevent or compensate for any violation of this policy;
4. You will not use such information to compete with the Company directly or indirectly and improper use may result in termination of the Agreement at the sole discretion of the Company;
5. You may be required to sign a non-disclosure agreement before receiving Confidential Information from the Company, or prior to engaging in activities that would allow you to acquire Confidential Information;
6. Upon expiration, non-renewal, or termination of the Distributor's Agreement, you will discontinue the use of such Confidential Information and destroy or promptly return to the Company all Confidential Information under your control or possession.
7. You agree that, but for this agreement of confidentiality and nondisclosure, the Company would not provide Confidential Information to you.
The provisions of Section 2-7 survive the termination of the Distributor's Agreement.
As an Independent Distributor, you are free to decide if and when you make any purchases as well as other business decisions. Because the Coral Club opportunity is based on the retail sale of the Company’s products to end consumers, you are not required to purchase any of the Company’s products. However, if you are not actively engaging in Distributor activities as evidenced by making at least one (1) sale within a 12-month period (with no minimum amount) you will be automatically downgraded to a regular club member and your Distributor's Agreement will be terminated. However, you will continue to enjoy a 20% discount from retail prices.
In order to become a Distributor again, you will need to reapply, following the process in section 2-1 of this document and having met all the requirements in section 2-4 of this document.
Sponsor and placement changes
The relationship between a Distributor and their Sponsor is a fundamental part of the Company’s Compensation Plan. The Company’s policies and procedures are structured in such a way so as to protect the interests of the Sponsor.
You may legitimately change your Sponsor by voluntarily terminating the Agreement and remaining inactive (i.e., no purchases of Coral Club products for resale, no sales of Coral Club products, no sponsoring, no attendance at any Coral Club functions, no participation in any other form of Distributor activity, no operation of any other Coral Club business, and no income from the Coral Club business) for 12 full calendar months. Following the 12-month period of inactivity, you may reapply under a new Sponsor of your choice. In that event, your former Downline Organization will remain in the original line of sponsorship.
After a 12-month period of inactivity, you will need to re-apply under the new Sponsor by following the process in section 2-1 of this document, having met all the requirements in section 2-4 of this document.
Sale or Transfer of the rights to a Distributor's Agreement
The rights to a Distributor's Agreement may be transferred to a legal successor subject to the Company’s approval and acceptance in its sole discretion.
Marriage and Divorce
If both spouses wish to participate in the business with Coral Club, each such spouse must independently register as a Distributor and have his or her own Distributor ID Number. In addition, one of the spouses must be the sponsor of the other spouse.
Therefore, the earlier enrolled spouse must be the sponsor of his or her spouse. There are a couple of exceptions to this rule: a) If two individuals who were already enrolled as Coral Club Distributors marry, then they can each have their own Coral Club business with different sponsors; b) Prior to 2010, spouses were able to jointly enroll as a single Coral Club Distributor - such arrangements are grandfathered and therefore are not subject to the above rule.
In the event of divorce, the Coral Club Distributor business(es) of the divorced spouses will be disposed of as provided in this policy, depending on the manner in which the spouses operated the business.
If each spouse has his or her own Distribution Agreement, upon divorce, each spouse will retain their respective Distribution Agreement. However, at the request of one spouse, and the agreement of the other, the company can switch the order of the Club Member's IDs. In that event, the spouse who was originally sponsored by the other spouse will now become the sponsor of that spouse.
In cases where due to the grandfathering of a pre-existing arrangement there is a single Distribution Agreement and the spouses divorce, each spouse will receive a new Club Member number (CCI ID) and bonuses from the previous number will be split 50/50 between the spouses or at the discretion of the company.
Succession – Death
A Distributor’s Coral Club business is not transferrable by will, trust, or any other testamentary device. However, a Distributor can designate a beneficiary/successor of his/her Distribution Agreement business in the event he/she should die and should inform the Company of such designation by completing the Coral Club Beneficiary/Successor Designation form. If a Distributor did not designate a beneficiary/successor with the Company prior to the time of his/her death, the Company will only take appropriate steps at the request of an interested party. The Company will determine the beneficiar/ies or successor(s), giving priority based on closeness of the family relation to the deceased. In making this determination, the Company will look to the laws of intestate succession in the state in which the deceased Distributor resided at the time of his/her death for guidance.
The Club Member number (CCI ID) of any deceased Distributor with the rank of Emerald Director or lower (the highest Open rank in the past 6 months is used) will be transferred to the beneficiary/ies or successor(s) as determined according to the preceding paragraph. The beneficiary/ ies or successor(s) must complete a Coral Club Distributor Agreement prior to the transfer.
The CCI ID of the deceased Distributor with the rank of Diamond Director and higher is not transferred, but is maintained by the company. The beneficiary/ies or successor(s) must become a Distributor and build his/her/their own Organizational Structure. For the first 12 months, the beneficiary/ies or successor(s) will receive a Bonus check from the CCI ID of the deceased Distributor in addition to his/her/their own Bonus check.
For months 13-24 (second year) the beneficiary/ies or successor(s)will receive 50% of the Bonus check associated with the deceased Distributor’s CCI ID in addition to his/ her/their own.
For months 25-60 (third-fifth years) the beneficiary/ies or successor(s) will receive his/ her/their own Bonus check and the lesser between a) double the amount of his/her/ their bonus check and b) the Bonus check associated with the deceased Distributor’s CCI ID.
For months 61 onward (after the fifth year) the beneficiary/ies or successor(s)will receive his/her/their own Bonus check and the lesser between a) the amount of his/her/their bonus check and b) the Bonus check associated with the deceased Distributor’s CCI ID.
If the beneficiary/ies or successor(s) fail to complete a Distributor Agreement and become a Coral Club Distributor, no payments will be issued to him/her/them under this policy.
Voluntary Termination of the Distributor's Agreement
You may terminate the Distributor's Agreement at any time and for any reason by submitting to the Company in writing a request to terminate.
No changes to the organizational structure will be made until the Termination is final. If you are enrolled in the autoship program, you will be transferred to Consumer status and your autoship orders will continue unless you also request that your autoship agreement be cancelled.
The Company may terminate the Distributor's Agreement as specified in section 5-2.
Effective date
The Termination will come into effect on the date the Company receives your written notice of termination or the date specified in the written notice of termination, whichever is later.
Return of confidential information
Upon termination of a Distributor's Agreement, you must return all confidential information (or derivatives therefrom) to the Company. Any confidential information in electronic format shall be permanently deleted and erased.
Buy-Back
If you voluntarily terminate the Distributor's Agreement, return of product should be done through the Buy-Back process outlined in section 4-9 of this document.
Survival
Sections 3-1, 9-1 and where the context of the Policies clearly indicate the intent that such provision survives, shall survive the termination of the Agreement. The termination, relinquishment or expiration of the Agreement shall not relieve the Distributor from obligations that are expressly indicated in the Agreement to survive termination or expiration of the Agreement.
Rejoining after sale, transfer, or termination
After termination for any reason, you may reapply to become a Distributor after twelve (12) months from the Termination effective date, at which time you will be able to select a new sponsor. During this 12-month period, you are not permitted to participate in any distributor business activities or have a beneficial interest in any Distributorship. When reapplying, you will need to follow the process in section 2-1 of this document, having met all the requirements in section 2-2 of this document.
The Auto-allocation system is a service on the Company’s website that, according to each specific region’s guidelines, automatically selects a Distributor for new Club Members who come to the Company without a Sponsor.
Distributors with the current rank of Emerald Director and above can apply to participate in the Auto-allocation system. To apply, the Distributor must fill out the Enroller’s profile in their personal account in the Back Office section of the Company’s website.
Attention! The threshold for Independent Distributors to join the Auto-allocation system as an Enroller may vary from State to State.
Independent Distributors, who are participating in the Auto-allocation service, automatically receive new Club Members into their distribution network. The allocation in the system is based on each specific region’s guidelines. If the system has identified several Distributors in one region, then new Club Members are equaly distributed among them.
The conditions for obtaining new Club Members through the Auto-allocation system are as follows:
If, during this preliminary process, the Company discovers that the Distributor has not contacted the candidate within the prescribed period, the Distributor will be excluded from the Auto-allocation system of new Club Members for 1 year.
If a Distributor violates any Company policy, the Company reserves the right to immediately exclude them from the Auto-allocation system without additional justifications and notifications.