Can the meaning of 'targeted marketing' be further defined in the Itan manual?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You can market and advertise outside of your territory and development territory, if applicable, as long as: (a) you comply with all policies and procedures in the Manual governing extra-territorial marketing; and (b) you do not engage in targeted marketing directed into any territory or development territory assigned to us, our affiliate or another franchisee (unless the marketing is conducted as part of an advertising cooperative that includes the affected territory). Marketing that is distributed, circulated or received both within your territory and within another territory is not considered "targeted marketing" if: (a) you use reasonable efforts to limit the circulation or distribution of the advertising to areas within your territory; and (b) the majority of the recipients of the advertising are located within your territory and there is only incidental circulation or distribution within a territory assigned to us, our affiliate or another franchisee. The meaning of "targeted marketing" that is "directed into a territory" may be further defined in the Manual, but examples include direct mail sent to addresses within a given territory, digital advertising sent to devices with IP addresses registered within a given territory and conducting promotional events within a given territory.
Source: Item 12 — TERRITORY (FDD pages 31–33)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the definition of 'targeted marketing' can be further clarified in the Itan manual. Specifically, the FDD addresses restrictions on a franchisee's sales and marketing activities outside of their designated territory. Franchisees are permitted to market and advertise outside their territory as long as they adhere to the policies and procedures outlined in the Itan manual regarding extra-territorial marketing.
However, franchisees must not engage in 'targeted marketing' directed into territories assigned to Itan, its affiliates, or other franchisees, unless it's part of an advertising cooperative that includes the affected territory. Marketing that incidentally reaches other territories is not considered 'targeted marketing' if the franchisee makes reasonable efforts to limit circulation to their own territory and the majority of recipients are within their territory.
The Itan FDD states that the meaning of 'targeted marketing' that is 'directed into a territory' may be further defined in the Itan manual. Examples of targeted marketing include direct mail to addresses within a specific territory, digital advertising sent to devices with IP addresses registered within a given territory, and conducting promotional events within a given territory. Therefore, prospective franchisees should consult the Itan manual for a more detailed and precise definition of what constitutes prohibited 'targeted marketing' to ensure compliance and avoid potential conflicts with other franchisees or Itan itself.