When are Devon Creek franchisees required to reimburse the franchisor for taxes?

According to Devon Creek's 2024 Franchise Disclosure Document, franchisees are required to reimburse Devon Creek for taxes when those taxes are incurred. This includes taxes that Devon Creek must pay to any taxing authority due to the operation of the franchisee's business or payments that the franchisee makes to Devon Creek. These taxes include, but are not limited to, sales taxes or income taxes imposed by any authority.

This means that if a taxing authority assesses Devon Creek for taxes related to a franchisee's operations, the franchisee is responsible for covering those tax expenses. Similarly, if the franchisee's payments to Devon Creek trigger a tax liability for Devon Creek, the franchisee must reimburse Devon Creek for those taxes.

This is a fairly standard clause in franchise agreements. Franchisees should be aware of this potential financial obligation and factor it into their business planning. It is important to maintain accurate records and understand the tax implications of all transactions related to the Devon Creek franchise.