Does Deka Lash charge royalty or Brand Development Fees on sales tax?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Foo | Amount | Due Date | Remarks |
|---|---|---|---|
| Fee Taxes and Indebtedness | Amount You will pay all taxes, assessments, liens, encumbrances, accounts, and other debts, regardless of their nature, assessed against you, the Franchise Premises, or inventory, materials, fixtures, and equipment used in your | Due Date Payment will be made when due and before delinquent except when being contested in good faith by appropriate proceedings. | Remarks If we are charged with any tax by the authorized taxing authority of any state or municipality, including taxes on sales made to or licenses granted to you, or sales made by you at the Franchise Premises, you will pay those taxes and otherwise agree to allow us to deduct any amounts we paid. We do not charge royalty or Brand Development Fees on sales tax. |
| Sales, excise | Franchise. Actual amount incurred. | At time of payment of fees to us which are subject to any tax. | If required by the federal, state or locality in which your franchise is located. Including sales, excise or gross receipts tax or similar type tax on the initial franchise fee, royalty, training, Brand Development Fee, products, and any other services, products or fees. |
| or gross | |||
| receipts tax |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash does not charge royalty or Brand Development Fees on sales tax.
However, franchisees are responsible for paying all taxes, assessments, liens, encumbrances, accounts, and other debts assessed against them, the Franchise Premises, or inventory. This includes sales, excise, or gross receipts taxes on the initial franchise fee, royalty, training, Brand Development Fee, products, and any other services, products, or fees, if required by the federal, state, or local authorities where the franchise is located.
If Deka Lash is charged with any tax by an authorized taxing authority on sales made to franchisees or licenses granted to them, or on sales made by franchisees at the Franchise Premises, the franchisee must pay those taxes or allow Deka Lash to deduct the amounts paid. This ensures that Deka Lash can recover any taxes it is required to pay on behalf of its franchisees.