What is the due date for the Tax indemnity payment to Engel & Volkers?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| they have been timely | |||
| reported. | |||
| Attorneys' Fees | Varies | On demand. | You are responsible for our |
| costs and attorney's fees if we | |||
| incur them in any litigation | |||
| proceeding with you in which | |||
| we prevail or if we have to | |||
| obtain an injunction against | |||
| you. | |||
| Indemnification | You must indemnify us and other parties against all costs and expenses, including attorney's fees, arising out of claims by third parties as a result of your actions or omissions | On demand | Payable to us or our affiliates and their respective directors, officers, employees or agents. |
| Tax indemnity | You must pay us the | On demand | You must pay regardless of |
| amount of any state or | whether the tax is imposed | ||
| local sales, use, gross | directly on us, or required to | ||
| receipts or similar tax that | be withheld by you from | ||
| we may be required to pay | amounts due us, or is | ||
| on payments which you | otherwise required to be | ||
| make to us | collected by you from us. |
Source: Item 6 — OTHER FEES (FDD pages 22–30)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the tax indemnity payment is due on demand. This means that Engel & Volkers franchisees are responsible for paying the amount of any state or local sales, use, gross receipts, or similar tax that Engel & Volkers may be required to pay on payments which the franchisee makes to them.
The franchisee must make this payment regardless of whether the tax is imposed directly on Engel & Volkers, required to be withheld by the franchisee from amounts due to Engel & Volkers, or otherwise required to be collected by the franchisee from Engel & Volkers. This is a common practice in franchising, where franchisees often bear the responsibility for taxes associated with payments made to the franchisor.
Prospective Engel & Volkers franchisees should be aware of this "on demand" payment obligation and factor it into their financial planning. It is advisable to maintain sufficient funds to cover potential tax indemnity obligations to avoid any late payment issues or penalties. Franchisees should also seek clarification from Engel & Volkers regarding the specific types of taxes covered under this indemnity and the procedures for remitting payment.