Under what conditions can a Crowne Plaza franchisee withhold or deduct taxes from payments 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 the 2025 Crowne Plaza Franchise Disclosure Document, a franchisee, referred to as an Eligible Participant, can withhold or deduct applicable taxes from payments due to AT&T under specific conditions. This is permissible to the extent required by law.
The Crowne Plaza franchisee must use reasonable commercial efforts to minimize such taxes, as allowed by law or treaty. Furthermore, the franchisee is obligated to furnish AT&T with evidence required by relevant taxing authorities. This evidence is needed to establish that the tax has been paid, enabling AT&T to claim any applicable credit.
Outside of these specific withholding tax provisions, the franchisee is expected to pay AT&T without any deduction, setoff, or delay. This obligation underscores the importance of adhering to the outlined procedure when withholding taxes to remain compliant with the franchise agreement.