Is Byrider liable for any taxes levied upon the Byrider franchisee or their business?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
It is expressly understood and agreed that neither the Franchisee nor any employee of the Franchisee whose compensation for services is paid by the Franchisee may, in any way, directly or indirectly, expressly or by implication, be construed to be an employee of the Company for any purpose, most particularly with respect to any mandated or other insurance coverage, tax or contributions, or requirements pertaining to withholdings, levied or fixed by any city, state or federal governmental agency. The Company shall have no liability for any sales, use, occupation, excise, gross receipts, income, property or other taxes, whether levied upon the Franchisee, the Franchisee's Business, or the Franchisee's property, or upon the Company, in connection with sales made or business conducted by the Franchisee or payments to the Company pursuant hereto.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider is not liable for any taxes levied upon the franchisee or their business. Specifically, Byrider is not responsible for sales, use, occupation, excise, gross receipts, income, property, or other taxes related to the franchisee's operations. This includes taxes levied on the franchisee, the franchisee's business, or the franchisee's property. Byrider also bears no tax liability connected to sales made or business conducted by the franchisee, or payments made to Byrider itself under the franchise agreement.
This provision clarifies that the franchisee is fully responsible for all tax obligations arising from their Byrider business. It also reinforces the franchisor-franchisee relationship as independent entities, where Byrider does not assume tax liabilities for the franchisee's financial activities. This is a common arrangement in franchising, where franchisees operate as independent business owners responsible for their own financial and legal compliance, including tax obligations.
Prospective franchisees should consult with a tax advisor to fully understand their tax obligations as a Byrider franchisee. This includes understanding state and local tax requirements, as well as any potential tax implications related to the franchise agreement and the operation of the Byrider business. Franchisees should maintain accurate records of all sales, expenses, and other financial transactions to ensure compliance with tax laws.