What taxes and fees is a Dq Treat Participating Location responsible for regarding the purchase of equipment?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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; cost(s) (if any) of Installation Services, Advance Exchange Services, and On-Site Remedial Maintenance Services (only the first month of such equipment support services, as applicable) set forth in the Sales Order/Purchase Order, shipment (as contemplated by subsection (c) above) and taxes and other fees (as contemplated by subsection (e) above) shall be pre-paid by Participating Location via ACH. No earlier than the date of installation of the Equipment, PAR will issue its invoice indicating pre-payment of all amounts due under these Terms. Any abort, reschedule or cancellation fees will be invoiced separately or refunded to Participation Location as applicable. Ongoing monthly payments for Advance Exchange Services and/or On-Site Remedial Maintenance Services must be made by ACH. All sums not paid when due will accrue interest daily at the lesser of an annual rate of 18% (1.5% per month), or the highest rate permissible by law on the unpaid balance until paid in full.
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 specific taxes and fees related to equipment purchases. The franchisee must pay all taxes, withholding, duties, and governmental assessments on the sale, purchase, use, receipt, or shipment of equipment. These include sales or use taxes, but exclude taxes based solely on PAR's net income. However, if the Participating Location provides evidence of tax exemption, PAR (presumably the equipment vendor) will not invoice for those taxes.
In addition to the equipment purchase price, the franchisee is responsible for pre-paying costs for installation services, advance exchange services, and the first month of on-site remedial maintenance services, as detailed in the Sales Order/Purchase Order. These pre-payments are made via ACH. The franchisee also covers shipment costs and any applicable taxes and fees. PAR will issue an invoice after the equipment installation, confirming the pre-payment of all due amounts.
Additional fees may arise, such as abort, reschedule, or cancellation fees, which will be invoiced separately or refunded as applicable. Ongoing monthly payments for Advance Exchange Services and/or On-Site Remedial Maintenance Services must be made by ACH. Late payments will incur interest at the lesser of 18% annually (1.5% per month) or the highest rate permitted by law. It is important for prospective Dq Treat franchisees to understand these tax and fee obligations to accurately budget for equipment-related expenses.