When are sales taxes due under the Bevaris Alliance agreement?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, franchisees are responsible for paying sales taxes. All fees due under the franchise agreement are exclusive of sales tax or similar taxes. Where applicable, the franchisee must pay these taxes at the prevailing rate on the due date for payment or receipt of the relevant invoice from Bevaris Alliance. This means that franchisees need to understand and comply with all applicable sales tax laws and regulations in their area.

Franchisees must ensure they collect and remit sales taxes correctly and on time to avoid penalties or legal issues. This includes staying informed about any changes in sales tax rates or regulations. The franchisee will need to incorporate sales tax collection and remittance into their regular accounting practices.

In addition to sales taxes, franchisees are also responsible for other fees and payments outlined in the franchise agreement, such as royalty fees and marketing fund fees. The royalty fee is 10% of the franchisee's weekly gross sales receipts, and there is also a 2% system marketing fee. Franchisees must manage their finances carefully to meet all these obligations and maintain compliance with the franchise agreement.