What is the required action if a Better Blend franchisee is responsible for taxes on fees payable to Better Blend?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- (h) Taxes. Franchisee will be responsible for (and shall immediately remit to BBF upon demand) all sales taxes, use taxes, and other taxes imposed on the fees payable by Franchisee to BBF or its affiliates and on services or goods furnished to Franchisee by BBF or its affiliates, unless the tax is an income tax assessed on BBF or its affiliate for doing business in the state where the Business is located.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees are responsible for all sales, use, and other taxes imposed on fees payable to Better Blend or its affiliates, as well as on services or goods furnished to the franchisee by Better Blend or its affiliates. The only exception is income tax assessed on Better Blend or its affiliate for doing business in the state where the Better Blend business is located.
This means that if a franchisee is assessed taxes on any fees they pay to Better Blend, they must immediately remit those taxes to Better Blend upon demand. This obligation is separate from the franchisee's other payment obligations and is not subject to offset or deduction.
For a prospective Better Blend franchisee, this highlights the importance of understanding the tax laws in their specific location and how they apply to franchise fees and related transactions. It would be prudent to consult with a tax advisor to fully grasp these obligations and ensure compliance.