Is Clean Your Dirty Face responsible for the income taxes of its franchisees?
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, Clean Your Dirty Face is not liable for any income taxes levied on the franchisee or their business. The franchisee is solely responsible for paying all taxes related to their business operations. This includes sales, use, service, occupation, excise, gross revenue, income, and property taxes.
Furthermore, if Clean Your Dirty Face is required to pay any taxes on behalf of the franchisee's operation or payments made by the franchisee, the franchisee is obligated to reimburse Clean Your Dirty Face for those tax payments. This condition reinforces the financial independence of the franchisee's business from the franchisor.
This arrangement is typical in franchising, where franchisees are considered independent business owners. Franchisees should consult with a tax professional to understand their tax obligations and ensure compliance with all applicable tax laws. This section of the Franchise Agreement clarifies that Clean Your Dirty Face franchisees operate as independent entities responsible for their own financial and legal obligations, including taxes.