What kind of taxes are Crawlspace Medic franchisees responsible for reimbursing the franchisor?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Insurance | Amount paid by us for your insurance obligations | As incurred | You must reimburse us for any insurance costs and other fees we incur due to your failure to meet the insurance obligations required by the Franchise Agreement. |
| Taxes | Amount of taxes | When incurred | You must reimburse us for any taxes that we must pay to any taxing authority on account of either the operation of your Franchised Business or payments that you make to us, including, but not limited to any sales taxes or income taxes imposed by any authority. |
| Customer Feedback Program | Your Share of Our Then Current Fee | When incurred | If and when we establish a customer feedback program, you will be responsible for your share of costs associated with the program. |
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, franchisees are responsible for reimbursing the franchisor for taxes that the franchisor must pay to any taxing authority. This includes taxes related to the operation of the franchisee's business or payments made by the franchisee to Crawlspace Medic.
The taxes that Crawlspace Medic franchisees are responsible for include, but are not limited to, sales taxes and income taxes. The amount due for taxes will be the amount of the taxes incurred, and payment is due when the taxes are incurred.
This means that if Crawlspace Medic is required to pay sales or income taxes on behalf of a franchisee's business operations or on payments the franchisee makes to Crawlspace Medic, the franchisee must reimburse Crawlspace Medic for those tax amounts. This is a fairly standard practice in franchising, where franchisees often bear the responsibility for taxes associated with their specific business operations.