At what rate are sales taxes paid by the franchisee under the Bevaris Alliance agreement?

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

This means that in addition to the franchise fees and other costs outlined in the FDD, a Bevaris Alliance franchisee will also need to budget for sales taxes. The actual sales tax rate will vary depending on the location of the franchise and the applicable state and local laws. It is the franchisee's responsibility to understand and comply with these tax obligations.

Franchisees should consult with a tax advisor to determine the specific sales tax requirements in their area and to ensure they are properly collecting and remitting these taxes. Failing to do so could result in penalties and legal issues. This is a standard practice in franchising, as franchisees typically operate as independent business owners responsible for their own tax compliance.