What must an Itan franchisee ensure regarding their advertisements and promotional materials?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
e) you obtain all required licenses, permits and approvals from Governmental Authorities;
- (f) your Managing Owner and general managers successfully complete our initial training program;
- (g) you pay all amounts owed to us, our affiliates and suppliers that are due as of the opening date; and
- (h) you comply with all of your other obligations under this Addendum.
Upon our issuance of the Certificate of Conversion Completion, you shall immediately cease operating the Current Business at the Premises and commence operation of your iTAN Salon utilizing our Intellectual Property. At all times prior to issuance of the Certificate of Conversion Completion, including throughout the conversion process, you may, but need not, continue to operate the Current Business at the Premises.
- 6. Grand Opening. Section 10.3(a) of the Franchise Agreement is deleted in its entirety. Within the 30-day period following our issuance of the Certificate of Conversion Completion, you must spend a total of at least $5,000 on advertising and other marketing activities to promote the conversion of your Current Business and reopening as an iTAN Salon, including
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a franchisee converting an existing business to an Itan salon must spend at least $5,000 on advertising and marketing activities within 30 days of receiving a Certificate of Conversion Completion. These activities are intended to promote the conversion and reopening as an Itan Salon and can include digital advertising, guerilla marketing, and public relations. All advertising must be approved by Itan, and Itan may specify a grand opening marketing program that the franchisee must follow.
Additionally, Itan administers a brand and system development fund, which franchisees contribute to by paying a brand fund fee equal to 2% of Gross Sales on each royalty fee due date. This fund is used to promote public awareness of the Itan brand and improve the Itan system. The fund may be used for various advertising and marketing purposes, including developing and distributing advertising materials, conducting promotions, public relations, brand development, website development, and market research.
Itan also defines key terms related to advertising and marketing. An "Improvement" includes any modification or improvement to marketing, advertising, or promotional materials utilized by a Salon. "Marks" include all service marks, trademarks, trade names, and logos that Itan designates and authorizes Salons to use, including iTAN® and iTAN SUN SPRAY SPA®. These definitions clarify the scope of Itan's control and the franchisee's obligations regarding advertising and promotional activities.
In practical terms, this means that an Itan franchisee must adhere to Itan's brand standards and obtain approval for all advertising materials. They must also contribute to the brand fund, which supports broader marketing efforts. For franchisees converting existing businesses, there is an initial marketing spend requirement to ensure a successful relaunch under the Itan brand.