What kind of taxes is a Crepe De Licious franchisee responsible for?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Taxes | Amount assessed by federal, state, and local tax authorities on any payments you make to us | On demand | Payable if we are assessed any taxes on any payments you make to us (including sales, gross receipt, excise, use, or similar taxes, but not income taxes). |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, franchisees are responsible for specific tax obligations related to their business operations. Franchisees must collect sales taxes from customers and remit these taxes directly to the appropriate taxing authorities. These sales taxes are excluded from the calculation of gross revenues, which are used to determine royalty and advertising fees.
Additionally, if Crepe De Licious is assessed any taxes on payments made to them by the franchisee, such as sales, gross receipt, excise, use, or similar taxes (excluding income taxes), the franchisee is responsible for covering these tax amounts. This means that any tax burden imposed on Crepe De Licious due to the franchisee's payments will be passed on to the franchisee.
It is important for prospective Crepe De Licious franchisees to understand these tax responsibilities and factor them into their financial planning. Accurate collection and remittance of sales taxes, as well as preparedness to cover any taxes assessed on payments to the franchisor, are crucial for maintaining compliance and avoiding potential penalties.