What is the Clean Your Dirty Face franchisee's obligation regarding payment of taxes?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
We will have no liability for any sales, use, service, occupation, excise, gross revenue, income, property, or other taxes, whether levied on you or your Business, due to the business you conduct (except for our income taxes). You are responsible for paying these taxes and must reimburse us for any taxes that we must pay to any state taxing authority on account of either your operation or payments that you make to us.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, the franchisee is responsible for all taxes related to their business operations. Clean Your Dirty Face will not be liable for any sales, use, service, occupation, excise, gross revenue, income, property, or other taxes levied on the franchisee or their business, except for Clean Your Dirty Face's own income taxes.
This means that as a Clean Your Dirty Face franchisee, you are responsible for understanding and paying all applicable federal, state, and local taxes related to the operation of your Clean Your Dirty Face facial bar. This includes sales tax collected from customers, payroll taxes for employees, and income taxes on the profits of the business.
Furthermore, the franchisee must reimburse Clean Your Dirty Face for any taxes that Clean Your Dirty Face is required to pay to any state taxing authority due to the franchisee's operations or payments made to Clean Your Dirty Face. Therefore, it is important for a prospective franchisee to consult with a tax professional to understand their tax obligations and ensure compliance with all applicable tax laws. This also highlights the importance of accurate record-keeping and timely filing of tax returns to avoid penalties and interest.