Is a Craters & Freighters franchisee responsible for paying taxes related to the operation of the franchised business?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.22 Payment of Taxes. Franchisee will be responsible for the payment of all sales, use, service, occupation, excise, gross receipts, income, property, or any other taxes relating to the operation of the Franchised Business, whether levied upon Franchisee, Franchisee's property, or upon Franchisor, in connection with the sales made or business conducted by Franchisee (except any taxes Franchisor is required by law to collect from Franchisee with respect to Franchisee purchases from Franchisor). Franchisee acknowledges and agrees that Franchisor will not have any responsibility regarding the payment of any such taxes and required payments.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees are responsible for all taxes related to their franchised business. This includes sales, use, service, occupation, excise, gross receipts, income, and property taxes. The franchisee is responsible for these taxes whether they are levied on the franchisee, the franchisee's property, or on Craters & Freighters in connection with the sales made or business conducted by the franchisee.
Craters & Freighters explicitly states that it will not have any responsibility regarding the payment of these taxes or required payments, except for any taxes Craters & Freighters is required by law to collect from the franchisee with respect to franchisee purchases from Craters & Freighters.
This allocation of tax responsibility is standard in franchising. Prospective Craters & Freighters franchisees should factor these tax obligations into their financial planning and consult with a tax professional to understand their specific responsibilities.