How does Anago classify itself with the Internal Revenue Service for tax purposes?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
You will promptly pay when due all taxes required by any federal, state or local tax authority including unemployment taxes, withholding taxes, income taxes, tangible commercial personal property taxes, real estate taxes, intangible taxes and all other indebtedness You incur in the conduct of the Anago Unit Franchise. You will pay to Us an amount equal to any sales tax, goods and services taxes, gross receipts tax, or similar tax imposed on Us for any payments to Us required under this Agreement, unless the tax is measured by or involves the net income or Our corporate status in a state. If We pay any tax for which You are responsible, You will promptly reimburse Us the amount paid. If there is any bona fide dispute as to liability for taxes assessed or other indebtedness, You may contest the validity or the amount of the tax or indebtedness in accordance with procedures of the taxing authority or applicable law. However, You will not permit a tax sale or seizure by levy or signing or similar writ or warrant, or attachment by a creditor, to occur against any assets used in the Anago Unit Franchise.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
The 2025 Anago Franchise Disclosure Document does not explicitly state how Anago classifies itself with the Internal Revenue Service for tax purposes. However, the FDD does address the franchisee's responsibilities regarding various taxes.
Specifically, the franchisee is responsible for promptly paying all federal, state, and local taxes, including unemployment taxes, withholding taxes, income taxes, tangible commercial personal property taxes, real estate taxes, and intangible taxes. Additionally, the franchisee must pay Anago an amount equal to any sales tax, goods and services taxes, gross receipts tax, or similar tax imposed on Anago for payments made to them under the Franchise Agreement, unless the tax is based on Anago's net income or corporate status in a state. If Anago pays any tax for which the franchisee is responsible, the franchisee must promptly reimburse Anago.
While the FDD outlines the franchisee's tax obligations, it does not provide information on how Anago is classified for tax purposes. A prospective franchisee should seek clarification from Anago regarding their tax classification and consult with a professional tax advisor to understand the full tax implications of operating an Anago franchise.