When are taxes due to 360 Painting?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Taxes | Amount required to reimburse us for certain taxes imposed on payments to us | Upon demand | If any payments to us are taxed (not income tax), the Royalty will be increased so that the net payment to us is the same as without the tax. |
Source: Item 6 — OTHER FEES (FDD pages 18–21)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, franchisees are required to reimburse 360 Painting for certain taxes imposed on payments made to them. These taxes, which do not include income tax, are due upon demand. This means that 360 Painting will request payment from the franchisee when such taxes are levied on payments to 360 Painting. To ensure 360 Painting receives the same net payment as if the tax did not exist, the royalty fee will be increased to cover the tax amount.
This condition affects the franchisee because it makes them responsible for covering taxes that 360 Painting incurs on payments from the franchisee. The franchisee needs to be prepared to pay these taxes promptly upon request to avoid any potential penalties or disruptions to their franchise agreement. This is different from typical sales taxes, which the franchisee collects from customers and remits to the government. Instead, this clause refers to taxes specifically levied on payments made by the franchisee to 360 Painting.
It is important for prospective franchisees to understand the types of taxes that could be imposed on payments to 360 Painting and to factor these potential costs into their financial planning. Franchisees should seek clarification from 360 Painting regarding what specific types of taxes this provision covers to fully understand their financial obligations. Understanding this aspect of the franchise agreement is crucial for accurate budgeting and financial management.