For Atwell Suites, is the price in the Pricing Schedule inclusive of taxes, surcharges, and other similar charges?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Prices set forth in the Pricing Schedule are exclusive of and Eligible Participant will pay all taxes (excluding those on AT&T's net income), surcharges, recovery fees, customs clearances, duties, levies, shipping charges and other similar charges (and any associated interest and penalties resulting from Eligible Participant's failure to timely pay such taxes or similar charges) relating to the sale, transfer of ownership, installation, license, use or provision of the Services, except to the extent Eligible Participant provides a valid exemption certificate prior to the delivery of Services.
To the extent required by law, Eligible Participant may withhold or deduct any applicable taxes from payments due to AT&T, provided that Eligible Participant will use reasonable commercial efforts to minimize any such taxes to the extent allowed by law or treaty and will furnish AT&T with such evidence as may be required by relevant taxing authorities to establish that such tax has been paid so that AT&T may claim any applicable credit.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, the prices outlined in the Pricing Schedule do not include taxes, surcharges, and other similar charges. Instead, the franchisee, referred to as the Eligible Participant, is responsible for covering these additional costs. These costs encompass all taxes (excluding those on AT&T's net income), surcharges, recovery fees, customs clearances, duties, levies, shipping charges, and other similar charges related to the sale, transfer of ownership, installation, license, use, or provision of services.
However, there is an exception: if the Eligible Participant provides a valid exemption certificate before the services are delivered, they may be exempt from these additional charges. Furthermore, if legally required, the Eligible Participant can withhold or deduct applicable taxes from payments to AT&T, provided they make reasonable efforts to minimize these taxes as allowed by law or treaty. In such cases, the Eligible Participant must furnish AT&T with evidence that the tax has been paid, enabling AT&T to claim any applicable credit.
This arrangement means that prospective Atwell Suites franchisees need to factor in these additional charges when budgeting for the services detailed in the Pricing Schedule. Understanding the potential for exemptions and the process for handling tax withholdings is also crucial for managing costs effectively. Franchisees should clarify with Atwell Suites and AT&T what constitutes a valid exemption certificate and what documentation is required to demonstrate tax payments.