Who is responsible for paying taxes related to the Byrider Licensed System and its use?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Taxes.
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 Byrider's 2025 Franchise Disclosure Document, the franchisee is responsible for paying all taxes related to the Licensed System. Specifically, the franchisee must pay all sales, property, excise, use, and other federal, state, or local taxes and charges that become due because of the agreement, the Licensed System, or the franchisee's use or possession of it.
This means that as a Byrider franchisee, you will need to budget for and remit all applicable taxes related to the software, hardware, and other components of the Licensed System. This could include sales tax on the initial purchase of the system, property taxes if any components are considered real property, and any ongoing use or excise taxes that may apply in your jurisdiction. It is important to consult with a tax advisor to understand your specific obligations.
Furthermore, if the franchisee is eligible for a tax exemption, they are responsible for providing a copy of the exemption certificate or relevant documentation to Byrider upon request. This ensures that Byrider has the necessary records to verify the exemption and avoid any potential tax-related issues. Franchisees should maintain accurate records of all tax-related payments and documentation for compliance purposes.