Frega Definitions

Advocate

A community member who is automatically created as an Advocate when their normal platform activity (such as issuing Growth Points, sending an invoice, or initiating a chat) leads to a new person registering on Frega.

The primary reason people use Frega is the utility value—the practical benefits of the software and services for running businesses more efficiently or engaging with communities more effectively. Being an Advocate is a secondary benefit, not the primary purpose.

Advocates have no recruitment requirements, targets, or obligations. They receive modest, continuing payments while platform usage persists funded from Frega's service revenue when businesses they introduced continue to use the platform. These payments are tied to continued platform usage, not sign-ups. This is not a commission for recruitment—it is compensation for helping the community grow through genuine recommendations within their existing circles.

The fee structure is three levels, weighted heavily toward the direct introducer. If a level is unfilled, that portion is retained by Frega and not redistributed.

Current status: Operational with existing advocates receiving ongoing payments.

See also: How Advocates Work

AI Agent

A specialized AI tool created by community members using Azure Foundry and published to the Frega marketplace for other users to subscribe to.

AI Agents are available at a standard price of $2.50 per month per agent. Publishers receive a revenue share of the subscription. Agents can collaborate with Nova and with each other, forming an expanding library that progressively replaces traditional single-purpose applications.

Current status: Launching Q2 2026 with first agents. Strong adoption anticipated from developer publishers.

See also: Publisher, Nova, AI Agent Marketplace

AdDrops

Targeted promotional campaigns that enable businesses to reach specific community segments efficiently.

AdDrops are performance-based promotions where businesses pay only for completed, successful transactions resulting in a sale—not for clicks, impressions, or promises. They will become increasingly sophisticated as Frega builds datasets and targeting capabilities.

Current status: Launching Q2 2026.

Area Licensee

A community coordinator who oversees approximately 10 Territory Licensees within a broader geographical region.

Area Licensees secure their appointment through an initial setup fee and nominal annual fee thereafter, that contribute to building and maintaining geographical infrastructure. They receive compensation based on activity within their area. Area Licensees can be Advocates, but cannot hold other roles (Consultant, Publisher) to maintain clear separation of responsibilities.

See also: Territory Licensee, Licensees

Community

The interconnected network of businesses, customers, consultants, advocates, publishers, and licensees who participate in the Frega platform.

The community is built on principles of mutual benefit, shared success, privacy protection, and genuine utility. Everyone in the community contributes to and benefits from the ecosystem's growth.

Consultant

A community member who is programmatically identified as competent and willing to help others optimize their use of the Frega platform.

Consultants provide onboarding support, answer questions, assist with tool usage, and help clients achieve their goals. They are compensated from Frega's service revenue based on their clients' service usage and platform engagement—not for recruitment or network building.

Every consultant is supported by a more experienced consultant, enabling knowledge sharing and ensuring clients always have access to support. Consultants use a "Get Rid of the Red" management dashboard with performance measured through a proprietary Net Score system.

Current status: Operational with active consultants. Enhanced dashboards evolving continually.

See also: How Consultants Work

Deferred Liability

An accounting provision representing Frega's obligation to provide future goods or services when Growth Points are redeemed.

When a business pays to issue Growth Points, 35% of the fee is deferred as a liability (not recognized as revenue) in compliance with IFRS 15, Appendix B, paragraphs B39-B43—the international standard governing loyalty programs.

This liability is NOT revenue, NOT an investment fund, and CANNOT be used for other purposes. It is reduced only when points are redeemed, at which point Frega credits the business's service account.

See also: Growth Points, Service Fee, IFRS 15

Frega

A privacy-first, AI-powered SaaS ecosystem platform designed to strengthen local business communities through genuine connection and mutual support.

The name represents: Freedom (from extractive business models), Global (serving communities worldwide), Abundance (creating value for everyone, not extracting it).

See also: What Is Frega, How Frega Works

Garden Fence (Data Model)

Frega's privacy architecture where all user data stays within the protected Frega ecosystem and is never sold to third parties.

Data is used only for explicitly agreed purposes, handled under strict GDPR compliance, and monetized only through aggregate, anonymized insights where no individual is identified. Users maintain control over their data with rights to view, export, and delete.

See also: Privacy Model

GDPR

The General Data Protection Regulation—EU and UK data protection law that Frega fully complies with.

Frega's entire platform is designed with GDPR compliance from the foundation, not as an afterthought. This includes explicit consent requirements, user data rights, privacy-by-design architecture, and the "garden fence" data model.

Get Rid of the Red

Frega's company-wide management methodology using a RAG (Red/Amber/Green) traffic-light system applied consistently across all dashboards.

Red indicators flag areas needing attention. This system is used by consultants, licensees, businesses, and advocates to identify and address issues proactively. The goal is always to "get rid of the red" by resolving flagged issues.

Growth Points

Frega's branded loyalty reward system where businesses reward customers for their support, with points redeemable only with the issuing business.

Businesses typically pay a 1% fee on transaction value to issue Growth Points. Of this fee, 35% becomes a deferred liability for future redemptions (IFRS 15 compliant), and 65% is service revenue distributed to service providers.

Each business's points are independently branded (e.g., "Bob's Barber Growth Points"), creating loyalty to that specific business while all points appear in a single customer wallet.

Important: Growth Points are a loyalty reward, not a financial instrument, investment, or security.

Current status: Operational with existing clients actively using Growth Points. This is Frega's primary tool for organic growth.

See also: Deferred Liability, Service Fee, Growth Points Details

IFRS 15

International Financial Reporting Standard 15—the global accounting standard that governs revenue recognition, including loyalty programs.

Specifically, Appendix B paragraphs B39-B43 explain how loyalty points create a contract liability representing the obligation to provide future goods/services. Frega's Growth Points accounting is fully compliant with this standard, treating the 35% allocation as deferred liability (not revenue) until redemption.

See also: Growth Points, Deferred Liability

Licensee

A community coordinator who represents Frega in a specific geographical region, providing local support and face-to-face presence.

Licensees exist at two levels: Territory (local) and Area (regional). They secure appointments through fees that contribute to infrastructure costs and receive compensation based on regional activity. Licensees may be Advocates but cannot hold other roles (Consultant, Publisher).

Current status: Licensing program has commenced with territories and areas being allocated. There is a legacy of a limited number of regional and national licensees. These numbers will not increase.

See also: Territory Licensee, Area Licensee, Licensees

Nova

Every user's personal AI assistant that operates entirely within Frega's privacy-protected "garden fence" ecosystem.

Nova draws only on data within Frega, operates under strict GDPR rules, provides help and support, and reduces the burden on human consultants. Currently being trained with Q&A data. Nova will be free with optional upgrades at $2.50/month each.

Important: Nova is a support and productivity tool only. It does not manage money, balances, or financial products.

Current status: In development, launching Q2 2026.

See also: AI Agent, Nova Details

Publisher

A community member who develops and publishes AI agents to the Frega marketplace for other users to subscribe to.

Publishers use Azure Foundry within a secure sandbox environment. They receive a revenue share of the subscription. The development and publishing process is strictly governed by GDPR and secure data access regulations to protect community privacy.

Current status: Developer program launches Q2 2026. Strong adoption anticipated from publishers creating increasingly sophisticated agents.

See also: AI Agent, Publishers

Revenue Sharing

The distribution of Frega's service fee revenue to community members who provide services to the platform.

When businesses pay service fees, portions are distributed to Advocates (for community growth), Consultants (for support services), Licensees (for regional coordination), Publishers (for AI agent creation), and Frega (for platform operation).

Important: This is compensation for services provided, not investment returns or passive income. Distribution is based on actual service delivery and platform usage.

See also: Service Fee

Service Fee

The portion of fees paid by businesses that constitutes Frega's actual revenue, as distinct from deferred liability.

For Growth Points: When a business pays $100 to issue points, $65 is service fee (revenue) and $35 is deferred liability. The service fee is distributed to service providers (Advocates, Consultants, Licensees, Publishers, Frega).

See also: Deferred Liability, Growth Points, Revenue Sharing

Territory Licensee

A community coordinator who represents Frega in a specific local geographical territory.

Territory Licensees secure their appointment through a setup fee and nominal, annual fee, that contribute to infrastructure costs. They coordinate local activities, serve as go-to contacts, and provide face-to-face presence. They receive compensation based on territory activity. Territory Licensees can be Advocates and cannot hold other roles (Consultant, Publisher).

See also: Area Licensee, Licensees