Is 7 Brew liable for any taxes related to the franchisee's business operations, and if so, which ones?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
You must secure and maintain all licenses, permits, and certificates required for the Store's operation and operate the Store in full compliance with all Laws, including government regulations relating to occupational hazards, advertising, health, environment, employment, workers' compensation and unemployment insurance, and withholding and payment of federal and state income taxes, social-security taxes, and sales and service taxes.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the franchisee is responsible for all tax obligations related to the operation of their 7 Brew store. 7 Brew is not liable for these taxes.
The franchisee must secure and maintain all required licenses, permits, and certificates to operate the store. This includes adhering to all laws and government regulations related to occupational hazards, advertising, health, environment, employment, workers' compensation and unemployment insurance, and the withholding and payment of federal and state income taxes, social security taxes, and sales and service taxes.
This means that as a 7 Brew franchisee, you are responsible for calculating, collecting, and remitting all applicable taxes to the relevant government authorities. Failure to comply with these obligations could result in penalties and legal issues for the franchisee. It is important to consult with a tax professional to ensure full compliance with all applicable tax laws.