Who is responsible for collecting and accounting for Itan brand fund fees?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We administer the Brand Fund to promote public awareness of our brand and improve our System. We may use the Brand Fund to pay for any of the following in our discretion:
- developing, distributing or administering advertising and marketing materials and programs
- conducting and administering promotions, contests or giveaways
- public and consumer relations and publicity
- brand development
- sponsorships and charitable and nonprofit donations and events
- research and development of technology, products and services
- website development and search engine optimization
- development, maintenance and promotion of an ecommerce platform
- development and implementation of quality control programs
- conducting market research
- changes and improvements to the System
- fees and expenses charged by advertising agencies we engage to provide marketing services
- collecting and accounting for brand fund fees and preparing financial accountings of the Brand Fund
- legal fees to defend claims brought against you and/or the fund based on fund expenditures or activities
- any other programs or activities we deem appropriate to promote or improve the System reimbursing us for administrative, overhead and other expenses we incur to administer the Brand Fund, including compensation paid to our personnel for time spent working on Brand Fund matters
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–31)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan is responsible for collecting and accounting for brand fund fees. The FDD specifies that Itan administers the Brand Fund to promote public awareness of the brand and improve the system. As part of these administrative duties, Itan is responsible for collecting and accounting for brand fund fees and preparing financial accountings of the Brand Fund.
This means that Itan franchisees will remit their brand fund contributions to the franchisor, who will then manage and report on these funds. The brand fund is used for various purposes, including advertising, marketing, research and development, and improvements to the Itan system.
Itan also prepares an unaudited financial accounting of Brand Fund contributions and expenditures annually, which is available to franchisees upon request. This provides franchisees with some transparency into how the brand fund is being managed and spent. However, the FDD also states that the Brand Fund is not a trust, and Itan has no fiduciary obligations to franchisees regarding its administration of the Brand Fund.