Is the Better Blend franchisee responsible for sales, use, and other taxes on fees payable to Better Blend?

According to Better Blend's 2024 Franchise Disclosure Document, the franchisee is responsible for specific taxes related to fees and services. The franchisee must pay all sales taxes, use taxes, and other taxes imposed on the fees payable to Better Blend or its affiliates. This also applies to taxes on services or goods furnished to the franchisee by Better Blend or its affiliates.

However, there is an exception: the franchisee is not responsible for income taxes assessed on Better Blend or its affiliate for doing business in the state where the Better Blend business is located. This means that Better Blend itself is responsible for its own income taxes based on its business activities within the franchisee's state.

In practical terms, this means that when a Better Blend franchisee pays fees to the franchisor, they may also need to remit sales or use taxes on those fees, depending on state and local tax laws. Franchisees should consult with a tax advisor to understand their specific obligations and ensure compliance with all applicable tax regulations. Franchisees are responsible for remitting these taxes to Better Blend upon demand.