Friday, August 10, 2007

QUIXTAR: Quixtar Statement: Team

Quixtar Statement: Team

After working with Team training organization founders, Orrin Woodward and Chris Brady, on issues related to teaching by the organization on positioning of the business, the practice of “stacking,” or inappropriate depth-building, the use of unauthorized business support materials, and because they told company executives that they intend to start soliciting IBOs to join their new competing MLM business, the company has terminated Woodward and Brady’s Quixtar businesses. Moreover, they, together with other Team, Legacy and Team 5K IBOs, have filed a class action lawsuit in Federal Court against Quixtar.
Woodward and Brady have taught business practices about positioning of the business and “stacking” or inappropriate depth-building that put affiliated IBOs and Quixtar at serious and immediate risk for legal and regulatory action and had to be stopped. They also had issues with use of unauthorized business support materials and solicited others to become part of their training organization despite warnings to discontinue such practices.
Quixtar proposed solutions and options to address these issues that would bring Team-affiliated IBOs into compliance with Quixtar’s Rules of Conduct during a meeting August 9. Team’s founders refused to even review the plan and consider changing their practices. Team’s founders stated that they intended to start a competing MLM. In fact, they suggested we waive the non-compete clause that protects all IBOs to allow their new company or any other opportunity to prospect existing IBOs for competing opportunities.
Quixtar is unwilling to put its business and the businesses of hundreds of thousands of IBO businesses at risk of legal and regulatory action caused by Woodward and Brady’s practices. Ultimately, their unwillingness to address these issues and their stated plans to form a competing business resulted in the termination of their IBO businesses.
We are working with Team-affiliated IBOs to support them through the transition of leadership in their organization.

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