Under the Crave franchise agreement, what does the term 'Taxes' include?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE 13 DEBTS AND TAXES
13.1 Taxes
You shall promptly pay when due all Taxes (as defined below), levied or assessed, and all accounts and other indebtedness of every kind incurred by you in the conduct of the Franchised Business under this Agreement. Without limiting the provisions of Article 15, you shall be solely liable for the payment of all Taxes and shall indemnify us for the full amount of all such Taxes and for any liability (including penalties, interest and expenses) arising from or concerning the payment of Taxes, whether such Taxes were correctly or legally asserted or not. You shall submit a copy of all tax filings sent to federal, state and local tax authorities to us within ten (10) business days after such filing has been made with the appropriate taxing authority.
The term "Taxes" means any present or future taxes, levies, imposts, duties or other charges of whatever nature, including any interest or penalties thereon, imposed by any government or political subdivision of such government on or relating to the operation of the Franchised Business, the payment of monies, taxes imposed on the Royalty Fees paid to us, or the exercise of rights granted pursuant to this Agreement, whether imposed upon you or us.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are responsible for paying all taxes related to their franchised business. The term 'Taxes' is comprehensively defined to include any present or future taxes, levies, imposts, duties, or other charges. These charges can be of any nature and include any interest or penalties imposed by any government or political subdivision.
Specifically, the definition of 'Taxes' encompasses charges relating to the operation of the Franchised Business, payments of monies, taxes imposed on the Royalty Fees paid to Crave, or the exercise of rights granted pursuant to the Franchise Agreement. This definition applies whether the taxes are imposed upon the franchisee or Crave itself.
Crave franchisees must also provide copies of all tax filings sent to federal, state, and local tax authorities to Crave within ten business days after filing. Franchisees are also responsible for indemnifying Crave for the full amount of all such taxes and any associated liabilities, including penalties, interest, and expenses, regardless of whether the taxes were correctly or legally asserted.