Who is responsible for paying sales, income, and other taxes for a Best Brains franchise?

According to Best Brains' 2025 Franchise Disclosure Document, the franchisee is responsible for paying sales taxes collected from customers to the appropriate taxing authority. The document specifies that "Regular Gross Sales" for royalty fee calculation does not include "sales taxes collected from customers and paid to the appropriate taxing authority." This implies that Best Brains franchisees are responsible for collecting and remitting sales taxes. However, the FDD does not explicitly state who is responsible for paying income or other taxes.

As a Best Brains franchisee, you will need to understand your obligations for collecting and paying sales tax, as well as your responsibilities for income and other taxes. Failure to properly handle sales tax can result in penalties and legal issues.

Prospective franchisees should seek clarification from Best Brains regarding income and other tax responsibilities. It would be prudent to consult with a tax professional to ensure full compliance with all applicable tax laws and regulations when operating a Best Brains franchise.