What is the consequence if a Bor Restoration franchisee fails to pay taxes?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| FRANCHISE AGREEMENT | ||
| AGREEMENT | misuse of the Marks or Proprietary Information, breach of curable covenants more than three times during the Initial Term or one time during Successor Franchise Term, illegal transfer, violation of laws applying to business, criminal or civil convictions, material misrepresentations, failure to obtain permission, failure to pay taxes, underreporting, complaints against the business, disparagement of us, failure to add new goods or Services, other violations of Franchise Agreement that contain their own cure provisions, failure to add new goods, Services or technology. We have the right to manage the Business temporarily. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 33–35)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, failure to pay taxes is a cause for termination of the franchise agreement. The FDD outlines various provisions related to termination, including specific instances of franchisee default.
Specifically, the table in Item 17 indicates that failure to pay taxes is a violation of the Franchise Agreement that can lead to termination. Other violations include misuse of marks or proprietary information, breaches of covenants, illegal transfers, violations of laws applying to the business, criminal or civil convictions, material misrepresentations, failure to obtain permission, underreporting, complaints against the business, disparagement of Bor Restoration, and failure to add new goods or services.
This means that if a Bor Restoration franchisee does not meet their tax obligations, Bor Restoration has grounds to terminate the franchise agreement. This could result in the franchisee losing their business and the rights associated with the Bor Restoration franchise. It is important for prospective franchisees to understand all the conditions that could lead to termination, and to ensure they have the resources and knowledge to meet all obligations, including tax payments.