Under what condition is the Better Blend franchisee NOT responsible for taxes on fees payable to Better Blend?

According to Better Blend's 2024 Franchise Disclosure Document, franchisees are generally responsible for all sales taxes, use taxes, 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. However, there is an exception to this rule.

The franchisee is not responsible for 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 Better Blend, as the franchisor, is responsible for paying its own income taxes based on its business activities within the state where the franchisee's business operates.

In practical terms, this means a Better Blend franchisee needs to be prepared to remit sales and use taxes on franchise fees and goods/services they receive from Better Blend. However, they do not need to concern themselves with Better Blend's income tax obligations. This is a fairly standard arrangement in franchising, where franchisees handle local sales/use taxes while the franchisor manages its own income tax liabilities.