Who is responsible for paying sales taxes on sales made by the Apricot Lane Franchised Business?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE is solely responsible for the payment of all taxes related to the establishment and operation of the Franchised Business, including but not limited to any sales taxes due on the sales made by the Franchised Business, any sales taxes assessed on the royalties paid by FRANCHISEE to FRANCHISOR hereunder, state and federal income taxes of FRANCHISEE and the Franchised Business, use and property taxes related to the assets of the Franchised Business, and employee withholding taxes.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the franchisee is responsible for paying all taxes related to the establishment and operation of the franchised business. This includes any sales taxes due on the sales made by the Apricot Lane franchised business. The franchisee is also responsible for sales taxes assessed on royalties paid to the franchisor, state and federal income taxes, use and property taxes related to the assets of the franchised business, and employee withholding taxes.
This means that as an Apricot Lane franchisee, you will need to understand and comply with all applicable tax laws and regulations. This includes collecting sales tax from customers, filing tax returns, and paying taxes on time. Failure to do so can result in penalties and interest.
Franchisees should consult with a tax advisor to ensure they understand their tax obligations. Paying all required taxes is a standard obligation for franchisees in nearly all systems.