When must Itan franchisees prepare and send monthly reports detailing expenditures on local advertising?

According to Itan's 2025 Franchise Disclosure Document, franchisees must submit monthly reports detailing local advertising expenditures. These reports are due no later than the 15th day of each month, and they should cover expenditures incurred during the previous month, as required by Section 10.3(b) of the agreement.

The report must include copies of receipts for all reported advertising expenditures. This requirement ensures that Itan franchisees are transparent and accountable for their local marketing efforts, allowing Itan to verify compliance with the Local Marketing Commitment, which is a minimum spending requirement of 2% of monthly Gross Sales on local advertising. Itan may increase this Local Marketing Commitment with 30 days' notice, up to a maximum of 3.5% of Gross Sales.

Itan measures compliance with the Local Marketing Commitment on a rolling six-month basis. This means that as long as the average monthly expenditure on local advertising over a six-month period meets or exceeds the required percentage, the franchisee is considered compliant, even if spending fluctuates in individual months. The grand opening marketing expenditure and brand fund fees are separate from the Local Marketing Commitment and cannot be credited towards it.