What is the procedure for Amorino to collect taxes from the franchisee?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
eration of the Store, including sales taxes, use taxes, personal property taxes, real property taxes, and excise taxes. To the extent any such taxes are required by law to be collected from you and paid over by Amorino or any of its Affiliates to a taxing authority (a) on account of revenue from the sale of all products and services related to the Franchised Business and all other income of any kind related to the Franchised Business, or (b) on account of the initial franchise fee or any other fee paid by you to Amorino or its Affiliates, then Amorino may elect in its discretion to collect the amount of such taxes from you and promptly pay the tax collections to the appropriate tax authority; provided, however, that unless Amorino so elects, it shall be your responsibility to pay all such taxes directly to the appropriate tax authority. 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.
- J. Third Party Payments. You agree to pay when due any and all payments or fees payable to third parties (including any Affiliates of Amorino) such as vendors, suppliers, lenders, and lessors in connection with your operation of the Store, including amounts payable on account of rent, taxes (as further described in Section 6), indebtedness incurred by you in operating the Store, furnishings, fixtures or equipment, Proprietary Products you may purchase, and any other items required to operate the Store.
- K. No Withholding or Set-Off Rights. You may not set off, deduct or otherwise withhold any fees or other amounts due to Amorino under this Agreement on grounds of alleged nonperformance by Amorino of any of its obligations or for any other reason.
- L. Payment Terms. All payments required by this Agreement shall be paid by the date we specify as the due date for such payment (the "Due Date"). If the Due Date falls on a date that is not a Business Day, then payment shall be due on the next Business Day following the Due Date.
- M.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino has the option to collect taxes from franchisees under certain conditions. If legally required to collect taxes related to the franchised business's revenue, initial franchise fees, or other fees paid by the franchisee, Amorino may choose to collect these taxes and remit them to the appropriate tax authority. However, if Amorino does not elect to do so, the franchisee is responsible for paying these taxes directly.
If Amorino or its affiliates pay taxes to a tax authority on behalf of the franchisee without having collected the funds beforehand, they may elect to pay the taxes and then seek reimbursement from the franchisee. This ensures that all tax obligations are met, even if the initial collection was missed. However, the franchisee is not required to pay or reimburse Amorino for Amorino's income or similar taxes.
The franchisee is responsible for paying all payments or fees payable to third parties, including vendors, suppliers, lenders, and lessors, which includes amounts for rent, taxes, debts incurred while operating the store, furnishings, fixtures, equipment, proprietary products, and any other items required to operate the store. Additionally, the franchisee cannot deduct or withhold any fees or other amounts due to Amorino under the agreement due to alleged nonperformance by Amorino or for any other reason. All payments required by the agreement must be paid by the specified due date, and if the due date falls on a non-business day, the payment is due on the next business day.