What is the franchisee's obligation regarding taxes and contributions related to their employees under the Brain Balance franchise agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
10.04. FRANCHISEE shall pay on a timely basis all of its bills and obligations; federal, state, and local and other expenses; and all taxes of the Franchised Business. FRANCHISEE shall not create or incur any expenses chargeable to COMPANY without COMPANY's prior written approval.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees are responsible for paying all taxes related to their franchised business. Specifically, franchisees must pay on a timely basis all federal, state, and local taxes, as well as any other expenses and obligations associated with the Brain Balance business.
This obligation means that a Brain Balance franchisee must budget for and manage all tax liabilities, including income tax, sales tax, and any other applicable taxes. They are also responsible for understanding and complying with all relevant tax laws and regulations.
Furthermore, the franchisee is prohibited from creating or incurring any expenses that would be chargeable to Brain Balance without prior written approval. This reinforces the franchisee's independent financial responsibility for their business operations and tax obligations.