How will Itan determine the boundaries of the advertising cooperative?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, but need not, establish regional advertising cooperatives for purposes of pooling advertising funds to be used in discrete regions. We will determine the boundaries of the cooperative. In most instances, the boundaries will coincide with zip codes, designated marketing areas or municipal boundaries. We will specify the manner in which the cooperative is organized and governed. We may choose between: (a) administering the cooperative ourselves; or (b) establishing an advertising council, comprised by the cooperative's members, to administer the cooperative. We may require that the cooperative be administered in accordance with written bylaws, organizational documents or other governing documents that we approve.
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 establish regional advertising cooperatives to pool advertising funds for specific regions. Itan will determine the boundaries of these cooperatives, which will often align with zip codes, designated marketing areas, or municipal boundaries.
Itan will also specify how the cooperative is organized and governed, choosing to either administer it directly or establish an advertising council composed of the cooperative's members. Itan may also require the cooperative to be administered according to written bylaws, organizational documents, or other governing documents that Itan approves.
If a franchisee's Itan salon is located within a region subject to an advertising cooperative, the franchisee must participate in the cooperative according to its rules and procedures and abide by its decisions, including paying a cooperative advertising fee. This fee may be set by Itan or by a majority vote of the cooperative's members, but it will not exceed the franchisee's Local Marketing Commitment. All cooperative advertising fees paid are credited against the Local Marketing Commitment. Company-owned stores within the cooperative will contribute on the same basis as franchisees.