If Amorino pays taxes on behalf of the franchisee, how does Amorino get reimbursed?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent that we or any of our Affiliates must pay any such taxes to any tax authority and have not received or collected the amount of such taxes from you prior to the date such taxes are due, we or any of our Affiliates may elect to pay such taxes and you shall reimburse us or such Affiliate in accordance with Section 6.
Nothing in this subsection, or elsewhere, shall require you to pay or reimburse us or our Affiliates, for our or their income or other taxes of a similar nature.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, if Amorino or its affiliates pay taxes to any tax authority on behalf of a franchisee without having collected the amount beforehand, the franchisee is required to reimburse Amorino or its affiliate. This reimbursement is addressed in Section 6 of the contract.
This means that if Amorino pays sales taxes, use taxes, or any other taxes related to the franchise business that the franchisee is responsible for, Amorino has the right to collect that amount from the franchisee. This ensures that the franchisee ultimately bears the tax burden as intended.
However, the agreement specifies that franchisees are not required to reimburse Amorino or its affiliates for their income or similar taxes. This clarifies that the reimbursement obligation only applies to taxes directly related to the franchisee's business operations and not to Amorino's corporate taxes.