For a Buona franchise, who is responsible for paying all taxes, accounts, and other indebtedness incurred in the conduct of the Franchised Business?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
XVIII. TAXES AND PERMITS
- 18.1 Taxes. Franchisee shall promptly pay when due all taxes, accounts and other indebtedness of every kind incurred by Franchisee in the conduct of the Franchised Business under this Agreement. Franchisor will have no liability for any sales, use, excise, income, gross receipts, property, or other taxes levied against Franchisee or the Franchised Business or on Franchisor in connection with your operation of the Franchised Business, or any payments Franchisee makes to Franchisor pursuant to this Agreement, including but not limited to royalties and advertising fund contributions (except for Franchisor's own income taxes). If any such taxes are assessed against Franchisor, Franchisee shall reimburse Franchisor the actual amount of the taxes upon demand and upon receipt of proof of tax assessment.
- 18.2 Permits. Franchisee, in the conduct of the Franchised Business, shall comply with all applicable laws and regulations, and shall timely obtain any and all permits, certificates, or licenses necessary for the full and proper conduct of the business operated under this Agreement, including but not limited to licenses to do business, food service certifications, trade name registrations, sales tax permits and fire clearances.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchisee is responsible for paying all taxes, accounts, and other indebtedness incurred in the operation of their Franchised Business. This includes sales, use, excise, income, gross receipts, property, or other taxes levied against the franchisee or the Franchised Business. Buona will not be liable for any taxes levied against the franchisee.
Furthermore, if any such taxes are assessed against Buona, the franchisee is obligated to reimburse Buona for the actual amount of the taxes upon demand and upon receipt of proof of tax assessment. This condition ensures that Buona is held harmless from any tax liabilities arising from the franchisee's operation.
In addition to tax responsibilities, the Buona franchisee is required to comply with all applicable laws and regulations and must obtain all necessary permits, certificates, or licenses required for the proper operation of the business. These include licenses to do business, food service certifications, trade name registrations, sales tax permits, and fire clearances. This places the onus on the franchisee to ensure full legal compliance in running the Franchised Business.