Are fees due under the Bevaris Alliance agreement inclusive of sales tax?

According to Bevaris Alliance's 2024 Franchise Disclosure Document, all fees due under the franchise agreement are exclusive of sales tax or similar taxes. Where applicable, the franchisee is responsible for paying these taxes at the prevailing rate on the due date for payment or receipt of the relevant invoice from Bevaris Alliance. This means that any fee quoted by Bevaris Alliance, such as the initial franchise fee, royalty fees, or any other charges, does not include sales tax.

For a prospective Bevaris Alliance franchisee, this implies that the financial planning must account for these additional sales taxes. The franchisee needs to budget for these taxes on top of the stated fees to ensure timely and complete payments. Failing to account for sales tax could lead to underpayment and potential penalties or late fees from Bevaris Alliance.

This is a fairly standard practice in franchising, where the listed fees are typically exclusive of sales tax. Franchisees should confirm the applicable sales tax rates in their specific location and factor those into their financial projections. It is important to maintain accurate records of all payments and taxes remitted to comply with both the franchisor's requirements and local tax laws.