As of December 31, 2024, were there any advertising cooperatives in effect for Itan franchises?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
There were no advertising cooperatives in effect as of December 31, 2024.
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, as of December 31, 2024, there were no advertising cooperatives in effect. However, Itan may establish regional advertising cooperatives in the future for the purpose of pooling advertising funds to be used in specific regions. Itan will determine the boundaries of the cooperative, which will likely coincide with zip codes, designated marketing areas, or municipal boundaries.
Itan has the option to either administer the cooperative themselves or establish an advertising council comprised of the cooperative's members to handle the administration. The cooperative may be required to operate under written bylaws or organizational documents.
If a franchisee's store is located within a region subject to an advertising cooperative, they must participate in the cooperative according to its rules and procedures and pay a cooperative advertising fee. The cooperative advertising fee will not exceed the amount of the franchisee's Local Marketing Commitment, and all cooperative advertising fees paid will be credited against this commitment. Company-owned stores will contribute to the advertising cooperative on the same basis as franchisees.