What is the status of advertising proposed by the Itan franchisee and approved by the franchisor?

According to Itan's 2025 Franchise Disclosure Document, any advertising that an Itan franchisee proposes and that Itan approves is considered an "Improvement." This designation is significant because, as defined in Section 17.5 of the franchise agreement (not quoted here), Itan may have certain rights or claims to improvements made to the system, which could include franchisee-initiated advertising strategies.

Itan requires franchisees to obtain approval for all advertising and marketing programs and materials before they are used. This includes materials that Itan did not prepare, materials that Itan previously approved but are being modified, and the media channels the franchisee intends to use. Franchisees are prohibited from using any advertising materials, programs, or media that Itan has not approved or that Itan approves and later disapproves.

Itan has 10 business days to review and either approve or disapprove the advertising and marketing materials submitted by the franchisee. If Itan fails to respond within this 10-day period, it is considered a disapproval. This approval process ensures that all advertising aligns with Itan's brand standards and marketing strategies, but it also means franchisees must plan ahead and allow time for this review process before launching any campaigns.