Is Creative World School liable for any taxes levied upon the franchisee or the School?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
e Marks in any way we have not expressly authorized. Neither we nor you will make any express or implied agreements, warranties, guarantees or representations or incur any debt in the name or on behalf of the other, represent that our respective relationship is other than franchisor and franchisee or be obligated by or have any liability under any agreements or representations made by the other that are not expressly authorized in writing. We will not be obligated for any damages to any person or property directly or indirectly arising out of the School's operation or the business you conduct pursuant to this Agreement.
- 18.03 Taxes. We will have no liability for any sales, use, service, occupation, excise, gross receipts, income, payroll, property or other taxes, whether levied upon you or the School, in connection with the business you conduct (except any taxes we are required by law to collect from you with respect to purchases from us). Payment of all such taxes are your responsibility.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, Creative World School is not liable for taxes levied upon the franchisee or the school. The franchisee is responsible for paying all taxes associated with the business. This includes sales, use, service, occupation, excise, gross receipts, income, payroll, property, or other taxes related to the business's operation. The only exception is taxes that Creative World School is legally required to collect from the franchisee related to purchases from them.
This means that as a Creative World School franchisee, you are responsible for understanding and paying all applicable taxes related to your school's operation. This responsibility includes calculating, reporting, and remitting the correct amounts to the appropriate tax authorities. Failing to comply with these obligations could result in penalties, interest charges, or legal issues.
Furthermore, the franchisee agrees to indemnify Creative World School and its affiliates against any claims, obligations, damages, and costs, including taxes, arising from the school's operation or any breach of the Franchise Agreement. This indemnification clause reinforces the franchisee's responsibility for all tax-related matters and protects Creative World School from any liabilities resulting from the franchisee's actions or omissions. This is a common arrangement in franchising, where the franchisee typically bears the responsibility for the financial and legal obligations of their individual business unit.