How much prior notice will Itan provide before suspending or discontinuing the brand fund?

According to Itan's 2025 Franchise Disclosure Document, Itan may suspend or discontinue the brand fund at any time, providing franchisees with 30 days' prior notice. This fund is used to promote public awareness of the Itan brand and improve the system. Franchisees are required to contribute to this fund, with the amount being 2% of gross sales.

It is important to note that Itan has sole discretion in determining how the brand fund is used, including the content, concepts, materials, media, and placement of advertising activities. The FDD specifies that the fund is not a trust, and Itan has no fiduciary obligations to franchisees regarding its administration. This means that Itan is not legally bound to manage the fund in the franchisees' best interests, which is a notable risk for franchisees.

While Itan will provide an annual statement of fund operations to franchisees upon request, there is no guarantee that expenditures will be proportionate to the fees paid by franchisees in a specific geographic area, or that franchisees will directly benefit in proportion to their contributions. This lack of direct benefit or proportional spending could be a concern for franchisees who may expect a more direct return on their brand fund contributions. Prospective franchisees should consider these factors and seek clarification from Itan regarding the fund's management and potential benefits.