What marketing assistance will Itan provide throughout the term of the franchise agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise agreements also set forth a fee based on the percentage of sales to be contributed to a marketing fund to be spent on advertising for all locations. This fee can be changed from time to time. During the years ended December 31, 2023 and 2022 the marketing fund contribution rate was 4% of sales.
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 digital advertising, guerilla marketing and public relations. We must approve all such advertising in accordance with §10.3(a) of the Franchise Agreement. We may specify a grand opening marketing program that you must follow.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees are required to contribute to a marketing fund. Specifically, the franchise agreements stipulate a fee based on a percentage of sales, which is allocated to advertising for all Itan locations. The FDD states that Itan can change this fee from time to time.
During 2022 and 2023, the marketing fund contribution rate was set at 4% of sales. This means that for every dollar in sales, franchisees contributed 4 cents to the marketing fund. This fund is then used by Itan for advertising and marketing efforts intended to benefit all franchise locations.
In addition to the ongoing marketing fund contributions, franchisees converting an existing business to an Itan salon must spend at least $5,000 on advertising and marketing activities within 30 days of the conversion. These activities must be approved by Itan and may include digital advertising, guerilla marketing, and public relations. Itan may also specify a grand opening marketing program that the franchisee must follow.