Can Itan increase the Local Marketing Commitment?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
After opening, you must spend at least 2% of monthly Gross Sales on local advertising to promote your Salon (your "Local Marketing Commitment"). We may increase the Local Marketing Commitment upon 30 days' notice up to a maximum of 3.5% of Gross Sales. We measure your compliance with this requirement on a rolling six-month basis, meaning as long as your average monthly expenditure on local advertising over the six-month period equals or exceeds the Local Marketing Commitment, you are deemed in compliance even if your expenditure in a given month is less than the Local Marketing Commitment.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan can increase the Local Marketing Commitment that franchisees must spend on local advertising. Currently, franchisees must spend at least 2% of monthly Gross Sales on local advertising to promote their Salon.
Itan has the right to increase this Local Marketing Commitment with a 30 days' notice. However, the increase is capped, as Itan can only increase the Local Marketing Commitment 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 equals or exceeds the Local Marketing Commitment, the franchisee is deemed in compliance, even if the expenditure in a given month is less than the required commitment.