What were the Itan marketing fund expenses in 2024?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | · | 2023 | ||
|---|---|---|---|---|
| SALES | ||||
| Royalties | $ | 863,175 | $ | 746,395 |
| Membership and technology service fees | 32,676 | 22,788 | ||
| Franchise renewal fee | 1,000 | = | ||
| Area development agreement fees (note 8) | _ | 11,500 908,351 | 769,183 | |
| OPERATING EXPENSES | ||||
| Auto | 14,241 | 8,000 | ||
| Credit loss | 284 | = | ||
| Depreciation | 17,927 | 443 | ||
| Dues and subscriptions | 8,507 | 6,945 | ||
| Insurance | 72,234 | 85,562 | ||
| Office | 98,068 | 14,371 | ||
| Outside services | 83,583 | 51,677 | ||
| Payroll costs | 392,761 | 207,031 | ||
| Professional fees | 75,850 | 25,584 | ||
| Lease | 37,022 | 35,933 | ||
| Taxes and licenses | 342 | 325 | ||
| Training | 12,750 | - | ||
| Travel and meetings | 10,311 | 1,249 | ||
| Utilities | 18,151 842,031 | 14,555 451,675 | ||
| OPERATING INCOME | 66,320 | 317,508 | ||
| OTHER INCOME/(EXPENSES) | ||||
| Marketing fund fees | 667,682 | 635,751 | ||
| Interest income | 7 | - | ||
| Interest expense | (3,552) | (4) | ||
| Marketing fund expenses | (697,753) | (581,424) |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the marketing fund expenses for the year 2024 were $(697,753). This indicates that Itan spent $697,753 from the marketing fund during that year.
It is important to note that the FDD also mentions that Itan has sole discretion in determining the content, concepts, materials, media, endorsements, frequency, placement, location, and all other matters pertaining to marketing or advertising activities. This means that Itan has significant control over how the marketing fund is used. The document specifies that Itan does not ensure expenditures in a given geographic area are proportionate or equivalent to the brand fund fees paid by franchisees in that geographic area, nor do they ensure franchisees benefit directly or in proportion to their brand fund fees.
For a prospective franchisee, this information highlights the importance of understanding how the marketing fund is managed and how it benefits individual franchisees. While Itan will provide an annual statement of fund operations upon request, franchisees should be aware that the benefits from the marketing fund may not directly correlate with their contributions. Franchisees should inquire about the marketing strategies and how they are designed to support franchisees in different locations.