Who is responsible for making all periodic filings and payments required for withholding taxes, FICA taxes, and other federal or state taxes related to the Subfranchise Business for Anago?
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)
According to Anago's 2025 Franchise Disclosure Document, the franchisee is responsible for all tax obligations related to their Anago Unit Franchise. Specifically, the franchisee must promptly pay all required federal, state, and local taxes, including unemployment taxes, withholding taxes, income taxes, tangible commercial personal property taxes, real estate taxes, and intangible taxes. This obligation extends to any other indebtedness the franchisee incurs while operating the Anago Unit Franchise.
Furthermore, if Anago incurs any sales tax, goods and services taxes, gross receipts tax, or similar tax due to payments made to them by the franchisee under the franchise agreement, the franchisee is responsible for reimbursing Anago for the amount paid. The only exception is if the tax is measured by or involves the net income or corporate status of Anago in a particular state.
The franchisee has the right to contest tax assessments or other indebtedness if there is a legitimate dispute, following the procedures of the relevant taxing authority or applicable law. However, the franchisee must ensure that no tax sale, seizure by levy, or attachment by a creditor occurs against any assets used in the Anago Unit Franchise. This means the franchisee must take proactive steps to resolve any tax disputes to protect the business assets.