Does the Beehive Homes franchisor have liability for taxes levied upon the franchisee?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.3. Taxes. Neither Franchisor nor its Affiliates will have any liability for any sales, use, service, occupation, excise, gross receipts, income, property or other taxes, whether levied upon Franchisee or the Home, in connection with the business Franchisee conducts. Payment of all such taxes are Franchisee's sole responsibility.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, neither Beehive Homes nor its affiliates will have any liability for taxes levied upon the franchisee. This includes sales, use, service, occupation, excise, gross receipts, income, property, or other taxes related to the franchisee's business operations. The FDD clearly states that the payment of all such taxes is the sole responsibility of the Beehive Homes franchisee.
This provision underscores the independent contractor relationship between Beehive Homes and its franchisees. Franchisees are responsible for understanding and complying with all applicable tax laws and regulations. This includes registering for tax identification numbers, filing tax returns, and remitting tax payments on time.
For a prospective Beehive Homes franchisee, this means that they must budget for all applicable taxes and seek professional advice from a qualified tax advisor. Failure to comply with tax obligations can result in penalties, interest charges, and legal action. Franchisees should carefully consider the tax implications of operating a Beehive Homes franchise before investing in the business.