What is a Dq Treat Participating Location's responsibility regarding taxes on the Services or Equipment?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
imited hours of operation when an authorized representative may not be present to sign for the delivery, the Participating Location should inform PAR of such limited hours when placing its order with PAR. If there is no representative at the Participating Location to accept and sign for the delivery, then the carrier will take the Equipment back and attempt to make delivery two (2) more times to the Participating Location. After the third attempt, the Equipment will be returned to PAR by the carrier and the Participating Location will be required to pay to PAR any additional shipping charge or other charges, including any rescheduling fees, prior to any further attempt at delivery of the Equipment.
- (e) Taxes and Other Fees. Participating Location shall be responsible for the payment of all taxes, withholding, duties and other governmental assessments upon or with respect to the sale, purchase, use, receipt or shipment of the Equipment (other than taxes based solely on PAR's net income), including, without limitation, sales or use tax or similar taxes, provided that PAR will not invoice Participating Location for taxes to the extent Participating Location has provided PAR with evidence that Participating Location is exempt from paying and/or PAR is exempt from collecting such tax.
- (f) Payment and Invoice. All amounts for the Purchase Price of the Equipment;
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, a Participating Location is responsible for handling taxes related to the sale, purchase, use, receipt, or shipment of equipment. This includes sales, use, or similar taxes, but excludes taxes based solely on PAR's net income. However, if the Participating Location is exempt from paying these taxes and provides PAR with the necessary evidence, PAR will not invoice the location for those taxes.
The FDD also states that the Participating Location is responsible for paying all applicable taxes, whether they are currently in force or enacted in the future. These taxes are in addition to the amounts paid for the services and equipment themselves. If a Participating Location is tax-exempt, it must provide Acumera with an original certificate that meets legal requirements to prove its tax-exempt status. The tax exemption will only be valid from the date Acumera receives the certificate.
It's important to note that these taxes may change over time, and the Participating Location may or may not receive notice of these changes. Additionally, if Acumera refunds any amounts paid for services to the Participating Location, the applicable taxes may not be refundable. This means that franchisees need to stay informed about current tax laws and ensure they have the proper documentation to claim any exemptions.