Under what conditions is a Crisp & Green franchisee required to pay a Tax Assessment fee?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Tax Assessment | Our actual expenses | Upon demand | Payable only if there is a sales tax, gross receipts tax, or similar tax or assessment (other than income tax) imposed against us with respect to any payments you make to us under the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a franchisee is required to pay a Tax Assessment fee only if a sales tax, gross receipts tax, or similar tax or assessment (excluding income tax) is imposed against Crisp & Green with respect to any payments the franchisee makes to them under the Franchise Agreement.
The amount of the Tax Assessment fee will be Crisp & Green's actual expenses. This fee is due upon demand from Crisp & Green.
This means that if a new tax law or assessment is levied on the payments that franchisees make to Crisp & Green, the franchisee will be responsible for covering those additional costs. This is a fairly standard practice in franchising, as franchisors typically pass on any unavoidable tax-related expenses to their franchisees. Franchisees should be aware of this potential cost and factor it into their financial planning.