Under what circumstances must a Cream franchisee reimburse Cream for taxes?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
We will have no liability for any sales, use, service, occupation, excise, gross receipts, income, property, or other taxes, whether levied upon you or your Shop, due to the business you conduct (except for our income taxes). You are responsible for paying these taxes and must reimburse us for any such taxes that we must pay to any state taxing authority on account of your operation or payments that you make to us.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream franchisees are responsible for all taxes related to their business operations. This includes sales, use, service, occupation, excise, gross receipts, income, and property taxes, whether these taxes are levied directly on the franchisee or on their Cream shop.
Specifically, Cream will not be held liable for any taxes that a franchisee incurs due to their business operations, with the exception of Cream's own income taxes. The franchisee bears the responsibility of paying all applicable taxes.
Moreover, if Cream is compelled to pay any of the franchisee's taxes to a state taxing authority due to the franchisee's operation or payments made to Cream, the franchisee is obligated to reimburse Cream for the full amount of these tax payments. This condition ensures that Cream does not bear any tax burden resulting from the franchisee's business activities and that the franchisee remains ultimately accountable for all taxes associated with their Cream franchise.