Is a Buildingstars franchisee required to pay all taxes incurred with the purchase and operation of the Business?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- d. Taxes. FRANCHISEE is and will continue to be responsible for complying with all local, state and federal tax requirements including but not limited to income tax, sales tax, use tax or any other tax required along with the proper reporting requirements.
- G. Taxes. 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. 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 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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are responsible for all tax obligations incurred from purchasing and operating the business. Specifically, Buildingstars franchisees must comply with all local, state, and federal tax requirements. These include, but are not limited to, income tax, sales tax, use tax, and any other required tax, along with the proper reporting requirements.
Buildingstars franchisees must also make timely filings of all tax returns and pay all taxes levied or assessed on, and related to, the Franchise Agreement and the business. Buildingstars is not required to inform franchisees of any federal, state, municipal, or local law, rule, regulation, ordinance, code, or tax.
Furthermore, Buildingstars franchisees agree 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 conducting the business or the license of any of Buildingstars or its affiliates' intangible property to the franchisee. However, this indemnification does not extend to income-type taxes imposed on Buildingstars or its affiliates' income.