Can the Itan brand fund be used for website development and search engine optimization?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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 can be used for website development and search engine optimization. As an Itan franchisee, you are required to pay a brand fund fee equal to 2% of Gross Sales, which Itan deposits into the brand fund.
Itan has the discretion to use the brand fund for various activities aimed at promoting the brand and improving the system. These activities include developing advertising and marketing materials, conducting promotions, public relations, brand development, sponsorships, research and development, and improvements to the system.
Specifically, the brand fund can be used for website development and search engine optimization, as well as the development, maintenance, and promotion of an e-commerce platform. Itan also details that the fund can cover direct or indirect labor, administrative, overhead, and other expenses related to these activities, including compensation for officers, employees, or independent contractors working on brand fund matters. This provides Itan with flexibility in how they allocate the fund to support the brand's online presence and overall system improvements.