When is the brand fund fee due for Itan franchisees?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
(c) public and consumer relations and publicity;
(d) brand development;
(e) sponsorships and charitable and non-profit donations and events;
(f) research and development of technology, products and services;
(g) website development and search engine optimization;
(h) development, maintenance and promotion of an ecommerce platform;
(i) development and implementation of quality control programs and customer satisfaction surveys;
(j) conducting market research;
(k) changes and improvements to the System;
(l) fees and expenses charged by advertising agencies we engage to provide marketing services;
(m) collecting and accounting for brand fund fees and preparing financial accountings of the fund;
(n) any other programs or activities we deem appropriate to promote or improve the System;
(o) legal fees to defend Claims brought against the fund (or against you or other franchisees) based on fund expenditures or activities; and
(p) direct or indirect labor, administrative, overhead and other expenses incurred by us and/or our affiliates relating to any of these activities, including salary, benefits and other compensation of any of our (and any of our affiliate's) officers, employees or independent contractors based on time spent working on any brand fund matters described above.
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 brand fund fee is equal to 2% of Gross Sales for the prior reporting period. Itan uses this fund to promote public awareness of the brand and improve the system.
The brand fund can be used for various activities, including developing advertising and marketing materials, conducting promotions, public relations, brand development, sponsorships, research and development, website development, e-commerce platform development, quality control programs, market research, system improvements, advertising agency fees, and administrative expenses. Itan has the discretion to determine the content and placement of marketing and advertising activities.
Itan will provide reasonable marketing consulting, guidance, and support throughout the term of the agreement. Prior to the opening date, Itan will provide an initial supply of approved promotional materials and assist in developing a marketing plan, including a grand opening marketing plan. Franchisees may also have access to local advertising assets such as print marketing materials, social media templates, and stock photography, which may be sold to the franchisee, paid for by the brand fund, or accessed online for printing at the franchisee's expense.