For an Afuri Ramen Dumpling franchise, when are taxes, assessments, liens, and other debts due?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
2.7 You Will Pay Taxes and Indebtedness.
- 2.7.1 You will pay all taxes, assessments, liens, encumbrances, accounts, and other debts, regardless of their nature, assessed against you, the Franchise Premises, or inventory, materials, fixtures, and equipment used in the Franchise. Payment will be made when due and before delinquent except when being contested in good faith by appropriate proceedings. If we are charged with any tax by the authorized taxing authority of any state or political subdivision, including taxes on sales made to or licenses granted to you, or sales made by you in the Franchise Territory, you will pay these taxes. You will pay to us promptly and when due the amount of all sales taxes, personal property taxes and similar taxes imposed upon, required to be collected, or on account of collection by us of the Initial Franchise Fee, the Royalty Fee, or any other payments you make to us pursuant to this Agreement.
- 2.7.2 You acknowledg
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, franchisees are responsible for paying all taxes, assessments, liens, encumbrances, accounts, and other debts associated with their franchise. This includes obligations related to the Franchise Premises, inventory, materials, fixtures, and equipment used in the franchise operation.
The FDD specifies that these payments must be made when they are due and before they become delinquent. The only exception to this requirement is if the franchisee is contesting the debt in good faith through appropriate legal proceedings.
Furthermore, if Afuri Ramen Dumpling is charged with any tax by a state or local taxing authority, including taxes on sales made to or licenses granted to the franchisee, the franchisee is responsible for paying these taxes. Franchisees must also promptly pay Afuri Ramen Dumpling when due for the amount of all sales taxes, personal property taxes, and similar taxes imposed upon, required to be collected, or on account of collection by Afuri Ramen Dumpling of the Initial Franchise Fee, the Royalty Fee, or any other payments the franchisee makes to Afuri Ramen Dumpling under the Franchise Agreement.