Under what circumstances might Amorino elect to collect and pay taxes on behalf of the franchisee?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino may elect to collect and pay taxes on behalf of the franchisee under specific circumstances. If legally required to collect taxes from the franchisee related to revenue from the sale of products and services, or from the initial franchise fee or any other fees paid by the franchisee, Amorino has the option to collect these taxes and remit them to the appropriate tax authority.
However, this is not mandatory. Amorino can choose whether or not to collect and pay these taxes. If Amorino does not elect to collect the taxes, it remains the franchisee's responsibility to pay all such taxes directly to the appropriate tax authority.
Furthermore, if Amorino or its affiliates pay taxes to any tax authority on behalf of the franchisee and have not previously collected the amount from the franchisee, they may elect to pay the taxes and then seek reimbursement from the franchisee. The agreement clarifies that franchisees are not required to pay or reimburse Amorino or its affiliates for their income or similar taxes.