What is the Buona franchisee's obligation regarding taxes assessed against the franchisor due to the franchisee's business operation?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Cost of re-inspection | You must reimburse us for our actual costs of conducting a second inspection (compensation and travel expenses of our representative or fees charged to us by a third party service for conducting the re inspection) | Upon demand. | If we conduct a quality assurance audit or a mystery shop is conducted and it is determined that you are not in compliance with our specifications, standards or requirements, and we require you to take steps to correct the deficiencies, you must reimburse us for the cost of conducting a subsequent quality assurance audit to determine if the deficiencies have been corrected. |
| Taxes | Actual costs incurred by us. | Upon demand | If any taxes are assessed against us arising from payments you make to us or otherwise from the operation of your business, you shall reimburse us the actual amount of the taxes upon demand and upon receipt of proof of tax assessment |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees are responsible for reimbursing Buona for taxes assessed against them under specific conditions. If any taxes are assessed against Buona arising from payments a franchisee makes to Buona or otherwise from the operation of the franchisee's business, the franchisee must reimburse Buona the actual amount of the taxes. This reimbursement is due upon demand from Buona, and Buona must provide proof of the tax assessment to the franchisee.
This means that if the franchisee's business operations or payments to Buona trigger a tax liability for Buona, the franchisee is legally obligated to cover those tax expenses. This could arise from a variety of situations, such as sales tax issues, or other tax implications related to how the franchisee conducts business.
It is important for prospective Buona franchisees to understand this obligation and factor it into their financial planning. Franchisees should maintain accurate records of all payments made to Buona and be prepared to address any potential tax liabilities that may arise. It would be prudent to consult with a tax professional to fully understand the potential tax implications of operating a Buona franchise and how to best manage this reimbursement obligation.