What is a Byrider licensee required to do if they are exempt from certain taxes?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee shall pay all sales, property, excise, use and other federal, state or local taxes and charges hereinafter due and payable by reason of this Agreement of the Licensed System or its use or possession of the same by Licensee.
If a certificate of exemption or similar document is to be used in order to exempt Licensee from such liability, Licensee shall furnish a copy of such certificate or document to Licensor upon request.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, licensees are responsible for paying all applicable federal, state, and local taxes and charges related to the franchise agreement, the Licensed System, or its use or possession. These taxes include sales, property, excise, and use taxes.
However, if a Byrider licensee is exempt from such tax liability, they are required to provide a copy of the certificate of exemption or similar documentation to Byrider upon request. This ensures that Byrider has proper records and can verify the exemption claimed by the licensee.
This requirement is standard practice in franchising, as franchisors need to maintain accurate records of tax-related matters for compliance and auditing purposes. By requiring franchisees to provide exemption certificates, Byrider can ensure that it is not held liable for taxes that the franchisee is legally exempt from paying.