What is the Bevaris Alliance franchisee's obligation regarding sales tax?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, franchisees are responsible for paying all applicable sales taxes. The franchise agreement stipulates that all fees due to Bevaris Alliance are exclusive of sales tax or similar taxes. Where these taxes apply, the franchisee must pay them at the prevailing rate on the due date for payment or receipt of the relevant invoice from Bevaris Alliance.

This means that when Bevaris Alliance invoices a franchisee for fees, such as royalty fees or other charges, the listed amount does not include any sales tax. The franchisee is obligated to calculate and remit the appropriate sales tax to the relevant tax authorities in addition to paying the invoiced fees to Bevaris Alliance. This obligation is a standard practice in franchising, where franchisees typically operate as independent business owners responsible for their own tax obligations.

It is important for prospective Bevaris Alliance franchisees to understand and budget for these sales tax obligations. Failure to properly collect and remit sales taxes can result in penalties and legal issues. Franchisees should consult with a tax professional to ensure they comply with all applicable sales tax laws and regulations in their operating area.