What is the due date for the Taxes for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee(1) Type of | Amount imposed by your state, local, and federal governments | Due Date | Remarks |
|---|---|---|---|
| Taxes | Amount imposed by your state, local, and federal governments | As incurred | You will pay all applicable taxes. If any laws are changed, new laws are introduced or courts, or any relevant authority interprets laws differently so as to require us to pay a tax, duty, excise, or levy (impost) on amounts we receive from you (other than income tax) or on goods or services we supply, you will pay us an additional amount so that our net yield is unchanged. |
Source: Item 6 — Other Fees (FDD pages 13–17)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, franchisees are responsible for paying all applicable taxes imposed by state, local, and federal governments. The due date for these taxes is "as incurred," meaning they are due according to the schedules and deadlines set by the respective taxing authorities.
This means a Chatime franchisee must stay informed about all relevant tax laws and regulations and ensure timely payment to avoid penalties or legal issues. The franchisee is responsible for understanding and adhering to the specific tax requirements in their location.
Furthermore, if any tax laws change or new laws are introduced that require Chatime to pay a tax on amounts received from franchisees (excluding income tax) or on goods/services supplied, the franchisee will be required to pay an additional amount to ensure Chatime's net yield remains unchanged. This condition places the onus on the franchisee to cover any unforeseen tax-related costs that Chatime might incur due to changes in legislation or legal interpretations.