Is a Buildingstars franchisee required to pay all of its own obligations, including taxes?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall pay when due all of its own obligations including but not limited to taxes whatsoever incurred with the purchase and operation of the Business.
FRANCHISEE shall make timely filings of all tax returns and shall pay when due all taxes levied or assessed on, and related to this Agreement and the Business.
At no time is BUILDINGSTARS required to inform FRANCHISEE of any federal, state, municipal, or local law, rule, regulation, ordinance code, or tax.
FRANCHISEE agrees to indemnify and/or reimburse BUILDINGSTARS and its Affiliates for all capital, gross receipts, sales, and other taxes and assessments imposed by any applicable state or local governmental authority as a result of the conduct of the Business or the license of any of BUILDINGSTARS or its Affiliates' intangible property to FRANCHISEE (whether required to be paid by BUILDINGSTARS or its Affiliates, withheld by FRANCHISEE or otherwise). FRANCHISEE's obligation to indemnify or reimburse BUILDINGSTARS or its Affiliates for these taxes does not extend to income-type taxes which a state or local government imposes on BUILDINGSTARS or its Affiliates' income.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are responsible for paying all their own obligations, including taxes, incurred from purchasing and operating the business. Buildingstars is not required to inform franchisees of any federal, state, municipal, or local law, rule, regulation, ordinance code, or tax. Franchisees must also comply with all applicable laws, rules, and regulations related to the business, including the Americans with Disabilities Act (ADA) and OSHA.
Buildingstars franchisees are required to make timely filings of all tax returns and pay all taxes levied or assessed on the business. Additionally, franchisees must indemnify or reimburse Buildingstars and its affiliates for all capital, gross receipts, sales, and other taxes and assessments imposed by any applicable state or local governmental authority due to the business's conduct or the license of any of Buildingstars's intangible property to the franchisee. This obligation does not extend to income-type taxes imposed on Buildingstars or its affiliates' income.
This means that prospective Buildingstars franchisees need to be aware of and prepared for all tax obligations associated with owning and operating a franchise. They should consult with a tax professional to ensure they understand their responsibilities and comply with all applicable tax laws. The franchisee is responsible for obtaining all necessary licenses and permits required by federal, state, municipal, and local laws, rules, regulations, ordinances, and codes.