Is Buns On Fire liable for property taxes levied upon the Buns On Fire franchised business?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor shall have no liability for any sales, use, excise, gross receipts, property or other taxes, whether levied upon Franchisee, the Franchised Business or its assets, or upon Franchisor in connection with sales made, services performed or business conducted by Franchisee, except for any taxes Franchisor is required by law to collect from Franchisee with respect to purchases from Franchisor or for Franchisor's own income tax liability.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Buns On Fire is not liable for property taxes levied upon the Buns On Fire franchised business. The franchisee is responsible for all taxes related to the operation of the franchised business.
Specifically, the FDD states that Buns On Fire has no liability for any property taxes levied upon the franchisee, the franchised business, or its assets. This extends to sales, use, excise, gross receipts, or other taxes related to the franchisee's sales, services, or business operations. The only exception is for taxes that Buns On Fire is legally required to collect from the franchisee for purchases from Buns On Fire or for Buns On Fire's own income tax liability.
This provision clarifies that franchisees are responsible for understanding and paying all applicable taxes related to their business. Prospective franchisees should consult with a tax advisor to ensure they understand their tax obligations.