How much notice will Itan provide before increasing the Local Marketing Commitment?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Ongoing Marketing. You must participate at your own expense in all advertising, promotional and marketing programs we require, including any advertising cooperative we establish pursuant to §10.4. 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. Your
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must spend at least 2% of monthly Gross Sales on local advertising to promote their salon, which is referred to as the "Local Marketing Commitment." Itan retains the right to increase this Local Marketing Commitment, but they must provide the franchisee with 30 days' notice before doing so.
The maximum amount that Itan can increase the Local Marketing Commitment to is 3.5% of Gross Sales. Compliance with the Local Marketing Commitment is measured 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 considered compliant, even if their expenditure in a particular month falls below the required amount.
This policy provides some flexibility for Itan franchisees in managing their local marketing spend. The 30-day notice period allows franchisees time to adjust their budgets and marketing strategies in response to any increase in the Local Marketing Commitment. The rolling six-month compliance measurement offers further flexibility, allowing franchisees to balance their spending over time and account for fluctuations in sales or marketing needs.