Who is responsible for paying sales and other transfer taxes at the closing of the All County business purchase?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
23.6.7. Instruments. At the closing, you agree to deliver instruments transferring:
23.6.7.1. good and merchantable title to the assets purchased, free and clear of all liens and encumbrances (other than liens and security interests acceptable to us), with all sales and other transfer taxes paid by you; and
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the seller is responsible for paying sales and other transfer taxes at the closing of the business purchase. Specifically, the franchisee must deliver instruments transferring good and merchantable title to the assets purchased, free and clear of all liens and encumbrances, with all sales and other transfer taxes paid by the franchisee.
This means that if you are selling your All County franchise, you will be responsible for covering these taxes out of the sale proceeds. This is a standard practice in many franchise agreements, as the seller is the one transferring ownership and benefiting from the sale. The exact amount of these taxes will depend on the location of the franchise and the specific assets being transferred.
Prospective franchisees should factor these potential tax liabilities into their financial planning when considering selling their All County business. It is advisable to consult with a tax professional to understand the specific tax implications of selling an All County franchise in your jurisdiction. This will help ensure a smooth and financially sound transfer process.