Who is responsible for paying taxes associated with purchases under the Baymont Inn Suites agreement?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.5 Taxes. Unless otherwise stated, our Fees do not include any taxes, levies, duties or similar governmental assessments of any nature, including but not limited to value-added, sales, use or withholding taxes, assessable by any local, state, provincial, federal or foreign jurisdiction (collectively, "Taxes"). You are responsible for paying all Taxes associated with its purchases hereunder. If we have the legal obligation to pay or collect Taxes for which you are responsible under this section, the appropriate amount shall be invoiced to and paid by you, unless you provide us with a valid tax exemption certificate authorized by the appropriate taxing authority. For clarity, we are solely responsible for taxes assessable based on our income, property and employees.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the franchisee is responsible for paying all taxes associated with their purchases under the franchise agreement. The FDD specifies that Baymont Inn Suites's fees do not include taxes, levies, duties, or similar governmental assessments, including value-added, sales, use, or withholding taxes.
Specifically, the franchisee is liable for any taxes levied by local, state, provincial, federal, or foreign jurisdictions. If Baymont Inn Suites has a legal obligation to pay or collect taxes for which the franchisee is responsible, Baymont Inn Suites will invoice the franchisee for the appropriate amount, which the franchisee must then pay.
However, Baymont Inn Suites clarifies that they are solely responsible for taxes assessable based on their own income, property, and employees. This division of tax responsibilities is a standard practice in franchising, where the franchisee typically bears the burden of taxes related to their specific business operations and purchases.