Does Itan have the right to change or terminate advertising cooperatives?

According to Itan's 2025 Franchise Disclosure Document, Itan retains the right to form, change, merge, or terminate advertising cooperatives at any time. As of December 31, 2024, there were no advertising cooperatives in effect.

This means that Itan has complete discretion over the structure and existence of advertising cooperatives. A prospective franchisee should be aware that Itan can alter or dissolve these cooperatives, which could impact the franchisee's local advertising strategies and costs. Franchisees are required to participate in advertising cooperatives if their store is located within a region subject to one, following its rules and procedures and paying a cooperative advertising fee.

Itan may set the minimum cooperative advertising fee or allow the cooperative to set the fee based on a majority vote of its members; however, the fee will not exceed the franchisee's Local Marketing Commitment. All cooperative advertising fees paid are credited against this Local Marketing Commitment. Company-owned stores contribute to the cooperative on the same basis as franchisees. While advertising cooperatives are not required to prepare financial statements, any prepared statements will be available to franchisees upon request.

Given Itan's control over advertising cooperatives, prospective franchisees should inquire about the criteria Itan uses to make decisions about forming, changing, merging, or terminating these cooperatives. Understanding these factors can help franchisees anticipate potential changes and plan their local marketing efforts accordingly.