What taxes is the Belocal Franchisee NOT responsible for under the N2 Franchisee Services Agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will be responsible for all sales, use, and excise taxes, and any other similar taxes, duties, and charges of any kind imposed by any federal, state, or local governmental entity on any amounts payable by Franchisee hereunder; provided, that, in no event will Franchisee pay or be responsible for any taxes imposed on, or regarding, N2's income, revenues, gross receipts, personnel, or real or personal property or other assets.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchisee is responsible for specific taxes under the N2 Franchisee Services Agreement. However, the franchisee will not be responsible for taxes imposed on N2's income, revenues, gross receipts, personnel, or real or personal property or other assets.
In practical terms, this means that while a Belocal franchisee must pay sales, use, excise, and similar taxes on their own payments and transactions under the agreement, they are not liable for income taxes or property taxes related to N2's business operations. This is a standard arrangement in franchising, where each party is responsible for their own income and asset-based taxes.
This provision clarifies the tax responsibilities of the franchisee, ensuring they are only responsible for taxes directly related to their own payments and business activities under the N2 Franchisee Services Agreement, and not for taxes related to N2's overall business.