Under what condition can Crowne Plaza withhold or deduct taxes from payments due to AT&T?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent required by law, Eligible Participant may withhold or deduct any applicable taxes from payments due to AT&T, provided that Eligible Participant will use reasonable commercial efforts to minimize any such taxes to the extent allowed by law or treaty and will furnish AT&T with such evidence as may be required by relevant taxing authorities to establish that such tax has been paid so that AT&T may claim any applicable credit.
Eligible Participant will pay AT&T without deduction, setoff, or delay for any reason (except for withholding taxes as provided in Section 4.2 Additional Charges and Taxes or in Section 4.5 Delayed Billing; Disputed Charges).
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, an eligible participant, potentially a franchisee, can withhold or deduct applicable taxes from payments due to AT&T under specific conditions.
First, the eligible participant must be legally required to withhold or deduct these taxes. Second, the eligible participant is expected to make reasonable commercial efforts to minimize these taxes, as far as the law or any relevant treaty allows. This implies that the franchisee should actively seek ways to reduce the tax burden where possible, rather than simply accepting the maximum possible tax deduction.
Finally, the eligible participant must provide AT&T with evidence that the tax has been paid. This evidence must be acceptable to the relevant taxing authorities and is necessary for AT&T to claim any applicable credit. This requirement ensures that AT&T can properly account for the taxes withheld and potentially offset them against their own tax liabilities. The franchisee is also obligated to pay AT&T without any deduction, setoff, or delay, except for these specific withholding taxes as described.