Under what condition can a B Bops franchisee contest tax assessments?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall additionally, at its sole expense, at all times promptly and fully comply with all federal, state and local laws, ordinances, rules and regulations applicable to operation of the Franchise, including, but not limited to, the payment when due (unless contested in good faith through appropriate proceedings) of all taxes assessed against Franchisee or against the sale of any product or item by the Franchise.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a franchisee can contest tax assessments if they do so in good faith through appropriate proceedings. This means that B Bops franchisees are expected to pay all federal, state, and local taxes, ordinances, rules, and regulations applicable to the operation of their franchise. However, the franchisee has the right to challenge these taxes if they believe there is a legitimate reason to do so.
For a prospective B Bops franchisee, this clause provides a degree of protection against potentially unfair or incorrect tax assessments. It allows them to dispute tax bills without automatically being in violation of the franchise agreement. However, it's crucial that any contest is pursued in "good faith" and through "appropriate proceedings," which likely means following legal and regulatory guidelines for tax disputes.
This requirement is fairly standard in franchise agreements. It balances the franchisor's need to ensure compliance with all laws and regulations with the franchisee's right to due process. A B Bops franchisee should consult with a qualified tax advisor or attorney to understand the specific procedures and requirements for contesting tax assessments in their jurisdiction and to ensure they are acting in good faith.