Does the Bevaris Alliance agreement allow for deductions or withholdings of tax as required by law?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 25.1 No set-off. All amounts due under this agreement shall be paid in full without any set-off, counterclaim, deduction or withholding (other than any deduction or withholding of tax as required by law).
- 25.2 Interest. If any party fails to make any payment due to the other under this agreement by the due date for payment, then, without limiting the other party's remedies under clause 20 and clause 21, the defaulting party shall pay interest on the overdue amount at the rate of 10% per annum or the maximum percentage of interest allowed by law, whichever is greater. Such interest shall accrue on a daily basis from the due date until actual payment of the overdue amount, whether before or after judgment. The defaulting party shall pay the interest together with the overdue amount. In relation to payments disputed in good faith, interest under this clause is payable only after the dispute is resolved, on sums found or agreed to be due, from the due date until payment.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the franchise agreement addresses the issue of deductions and withholdings. Specifically, it states that all amounts due under the agreement must be paid in full without any set-off, counterclaim, deduction, or withholding, except for deductions or withholdings of tax as required by law. This means that while Bevaris Alliance franchisees are generally expected to pay all amounts due without any reductions, they are permitted to make legally required tax deductions or withholdings.
This clause protects the franchisee by ensuring they comply with their legal obligations regarding tax payments. It clarifies that the standard 'no set-off' provision does not override any mandatory tax laws. Bevaris Alliance franchisees should consult with a tax professional to ensure they understand and comply with all applicable tax laws and regulations.
In the event that a Bevaris Alliance franchisee fails to make payments by the due date, the agreement specifies that interest will be charged on the overdue amount. The interest rate is set at 10% per annum or the maximum percentage allowed by law, whichever is greater. This interest accrues daily from the due date until the payment is made. However, if a payment is disputed in good faith, interest is only payable after the dispute is resolved, on the sums found to be due, from the original due date until payment.