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In private franchising when you generate $2700 profit, you retain $2000 and your sponsor recieves a leadership bonus of $700.

Now with your $2000 in hand, you have the opportunity to teach IBO "A" how to create the same $2700 in volume. Therefore, IBO "A" recieves $2000 for staffing their affiliate store, you recieve a leadership bonus such as $700.

Just by this example you now have duplicated forth.

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