What is the purpose of the Brand Fund for Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Definitions: As used in this Disclosure Document, the following capitalized terms have the meanings given to them below:
- "Brand Fund" means the brand and system development fund we currently administer to promote public recognition of our brand and improve our System.
TYPE OF FEE 1 AMOUNT 2, 3 DUE DATE REMARKS Noncompliance fee $500 per incident Upon demand Imposed if you breach a mandatory standard or operating procedure (including submission of required reports) and fail to cure within the time period we require. We may impose an additional $500 fee every 48 hours the breach remains uncured after we impose the initial fee. We will deposit these fees into the brand fund.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the Brand Fund is used to promote public recognition of the Itan brand and improve its system. The FDD defines the term "Brand Fund" as the brand and system development fund that Itan currently administers.
Additionally, the document states that Itan may impose a noncompliance fee of $500 per incident if a franchisee breaches a mandatory standard or operating procedure and fails to cure it within the required time period. Itan may impose an additional $500 fee every 48 hours the breach remains uncured after the initial fee is imposed. These noncompliance fees will be deposited into the Brand Fund.
It is common in the franchise industry for franchisors to establish a brand fund, sometimes called a national advertising fund, to support system-wide marketing and brand-building efforts. Franchisees are typically required to contribute a percentage of their gross sales to this fund. The Brand Fund is intended to benefit all franchisees by increasing brand awareness and attracting more customers to the Itan system.