Is Itan required to provide financial accountings of the brand fund?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We have sole discretion in determining the content, concepts, materials, media, endorsements, frequency, placement, location and all other matters pertaining to marketing or advertising activities. Any surplus in the fund may be invested and we may lend money to the fund if there is a deficit. The fund is not a trust and we have no fiduciary obligations to you with respect to our administration of the fund. In terms of marketing activities paid for by the fund, we do not ensure that: (a) expenditures in (or affecting) a given geographic area are proportionate or equivalent to the brand fund fees paid by franchisees in that geographic area; or (b) franchisees benefit directly or in proportion to their brand fund fees. We will prepare, and make available to you upon request, an annual statement of fund operations, including deposits and disbursements. We may suspend or discontinue the fund at any time upon 30 days' prior notice.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan does provide financial statements regarding the brand fund. Franchisees can request an annual statement of the fund's operations, which includes information on deposits and disbursements.
Itan has sole discretion over marketing and advertising activities, including content, media, and placement. The brand fund may be invested, and Itan can lend money to the fund to cover deficits. However, the fund is not a trust, and Itan does not have fiduciary obligations to franchisees regarding its administration.
Itan does not ensure that marketing expenditures are proportionate to the fees paid by franchisees in a specific geographic area, nor that franchisees will directly benefit in proportion to their brand fund fees. Itan may suspend or discontinue the fund with 30 days' notice.