What is the consequence if a Chocolate Fish Coffee franchisee fails to pay taxes when due?

According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, franchisees are required to pay all taxes when due. While the FDD excerpt specifies this obligation, it does not explicitly state the consequences of failing to do so.

However, the FDD does outline general default conditions that could be triggered by failure to meet financial obligations. For instance, if a franchisee is unable to pay debts as they become due, or if a levy or execution is made against the business, it could lead to further action from Chocolate Fish Coffee. These types of defaults can potentially lead to termination of the franchise agreement.

To fully understand the specific ramifications of failing to pay taxes on time, prospective Chocolate Fish Coffee franchisees should seek clarification from the franchisor. Specifically, they should inquire about the specific policies and procedures Chocolate Fish Coffee has in place for addressing tax delinquency and how these situations are handled in practice. Understanding these details is crucial for assessing the financial risks associated with the franchise.