Does Itan conduct market research as part of its support for franchisees?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We administer the Brand Fund to promote public awareness of our brand and improve our System. We may use the Brand Fund to pay for any of the following in our discretion:
- developing, distributing or administering advertising and marketing materials and programs
- conducting and administering promotions, contests or giveaways
- public and consumer relations and publicity
- brand development
- sponsorships and charitable and nonprofit donations and events
- research and development of technology, products and services
- website development and search engine optimization
- development, maintenance and promotion of an ecommerce platform
- development and implementation of quality control programs
- conducting market research
- changes and improvements to the System
- fees and expenses charged by advertising agencies we engage to provide marketing services
- collecting and accounting for brand fund fees and preparing financial accountings of the Brand Fund
- legal fees to defend claims brought against you and/or the fund based on fund expenditures or activities
- any other programs or activities we deem appropriate to promote or improve the System reimbursing us for administrative, overhead and other expenses we incur to administer the Brand Fund, including compensation paid to our personnel for time spent working on Brand Fund matters
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–31)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan may use the Brand Fund to pay for conducting market research. The Brand Fund is used to promote brand awareness and improve the Itan system. Itan has the discretion to use the fund for various activities related to advertising, marketing, and system improvements.
This means that Itan franchisees could potentially benefit from market research conducted by the franchisor, which could inform marketing strategies, identify customer preferences, and improve overall business operations. However, Itan does not guarantee that market research will be conducted, as it is just one of many possible uses of the Brand Fund.
It is important to note that the Brand Fund is not a trust, and Itan has no fiduciary obligations to franchisees regarding its administration. Itan can also discontinue the Brand Fund with 30 days' notice, which could impact the availability of funds for market research and other support activities. Prospective franchisees should consider these factors and inquire about Itan's typical allocation of the Brand Fund towards market research and other support initiatives.