Does Itan assist franchisees in developing a grand opening marketing plan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
case there will be no additional charge; (c) provide online access to these materials, in which case you must print the materials at your expense; and/or (d) contract with third-party suppliers to create and sell these materials to you.
10.3. Your Marketing Activities.
- (a) Grand Opening Marketing. We will assist you in developing a grand opening marketing plan, which must be approved by us. You must implement a grand opening marketing campaign to promote the opening of your Salon in compliance with the approved grand opening marketing plan and the requirements in the Manual. You must spend at least $5,000 on approved grand opening marketing expenditures during the grand opening period, which commences 30 days before your anticipated opening date and ends 60 days after your opening date. Based on our assessment of your local market conditions and grand opening marketing plan, we may recommend (but not require) that you spend more than the $5,000 minimum.
- (b) Ongoing Marketing. You must participate at your own expense in all advertising, promotional and marketing programs we require, including any advertising cooperative we establish pursuant to §10.4. After opening, you must spend at least 2% of monthly Gross Sales on local advertising to promote your Salon (your "Local Marketing Commitment"). We may increase the Local Marketing Commitment upon 30 days' notice up to a maximum of 3.5% of Gross Sales. We measure your compliance with this requirement on a rolling six-month basis, meaning as long as your average monthly expenditure on local advertising over the six-month period equals or exceeds the Local Marke
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan will assist franchisees in developing a grand opening marketing plan. The plan must be approved by Itan, and the franchisee must implement a grand opening marketing campaign to promote the opening of their salon, adhering to the approved plan and the guidelines in Itan's manual.
Itan requires franchisees to spend a minimum of $5,000 on approved grand opening marketing expenditures during the grand opening period. This period starts 30 days before the anticipated opening date and extends 60 days after the opening date. Itan may recommend that franchisees spend more than the minimum $5,000, depending on their assessment of local market conditions and the grand opening marketing plan.
In addition to the grand opening marketing, Itan franchisees must participate in all required advertising, promotional, and marketing programs, including any advertising cooperatives that Itan establishes. After opening, franchisees are required to spend at least 2% of monthly Gross Sales on local advertising to promote their salon, referred to as the "Local Marketing Commitment." Itan retains the right to increase this commitment with 30 days' notice, up to a maximum of 3.5% of Gross Sales. It's important to note that the grand opening marketing expenditure and brand fund fees are separate from, and not credited towards, the Local Marketing Commitment.