When is the brand fund fee due for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
a resolution of the Franchisee Entity authorizing the execution of this Agreement, a copy of its organizational documents and a current Certificate of Good Standing. All Owners and their spouses must sign a Franchise Owner Agreement.
10. ADVERTISING & MARKETING.
- 10.1. Brand Fund. We administer a brand and system development fund to promote public awareness of our brand and improve our System. On each royalty fee due date, you must pay us a brand fund fee equal to 2% of Gross Sales for the prior reporting period. We deposit all brand fund fees and noncompliance fees we collect into the fund. We may use the fund to pay for any of the following:
- (a) developing, administering or distributing advertising and marketing materials and programs
- (b) conducting and administering promotions, contests or giveaways;
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the brand fund fee is due on each royalty fee due date. The royalty fee due date is specified as the day of each week that Itan specifies. Currently, the royalty fee due date is the Wednesday immediately following the end of the prior reporting period. The reporting period runs from the opening of business on Monday through the close of business on Sunday.
For a prospective Itan franchisee, this means that the brand fund fee, which is a percentage of gross sales, must be paid weekly on Wednesday. The amount due will be based on the sales from the preceding Monday through Sunday. It is important to note that Itan may periodically change the reporting period and/or royalty fee due date through updates to the Manual.
Itan has sole discretion in determining the content, concepts, materials, media, endorsements, frequency, placement, location and all other matters pertaining to marketing or advertising activities. Any surplus in the fund may be invested and Itan may lend money to the fund if there is a deficit. The fund is not a trust and Itan has no fiduciary obligations to franchisees with respect to the administration of the fund.