What cooperation is required of an Eos Worldwide franchisee regarding Transfer Tax credits?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) You shall fully and promptly cooperate with and assist us to provide all information and records we may request in connection with any application by us to any taxing authority with respect to Transfer Tax credits, exemptions or refunds available for any withholding or other taxes paid or payable by you.
- (f) If either Franchisee or Franchisor (or any Franchisor affiliate) is required to pay or reimburse the other for the whole or any part of any cost, expense, loss or other amount that the other party has incurred or will incur in connection with this Transfer Tax liability, the amount to be paid or reimbursed is first to be reduced by an amount equal to any input tax credit the other party is entitled to in respect of the cost, expense, or loss and then increased in accordance with pursuant to this Section, as applicable. If we or our affiliates are required to refund to you any amounts paid hereunder, we and our affiliates will not be required to refund that portion of those amounts that were withheld by you in order to comply with any applicable tax law unless and until we or our affiliates receive a refund of those amounts from the applicable taxing authority thereof, and which is directly attributable to those amounts on us or our affiliates' income or with respect to which the period within which the credit may be reduced or disallowed has expired.
- (g) If any uncollected Transfer Tax is or becomes chargeable on any supply of goods or services by us or our affiliates under this Agreement, we shall issue you, or cause to be issued to you, an invoice and you will pay an amount equal to amount equal to such Transfer Tax in addition to the fees for that supply of goods or services (being the fees listed under this Agreement).
- (h) To the extent applicable, you agree that you will act as the importer for Tax and customs purposes in relation to any goods delivered by us or our affiliates to you in connection with your Franchise and will account for import Taxes and duties on those goods as required under applicable law.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, franchisees must fully and promptly cooperate with and assist Eos Worldwide in providing all information and records requested in connection with any application by Eos Worldwide to any taxing authority. This assistance pertains to Transfer Tax credits, exemptions, or refunds available for any withholding or other taxes paid or payable by the franchisee.
This means that as a franchisee, you are obligated to provide any documentation or information that Eos Worldwide needs to apply for tax benefits related to Transfer Taxes. Transfer Taxes are calculated by multiplying the fees payable by the franchisee (excluding the amount payable as a Transfer Tax) for the taxable supply of goods or services by the prevailing rate.
Furthermore, if either the franchisee or Eos Worldwide is required to pay or reimburse the other for any cost, expense, loss, or other amount related to Transfer Tax liability, the amount to be paid or reimbursed is first reduced by any input tax credit the other party is entitled to. If Eos Worldwide is required to refund any amounts to the franchisee, they are not required to refund any portion withheld by the franchisee to comply with tax law until Eos Worldwide receives a refund from the applicable taxing authority directly attributable to those amounts.
In addition, if any uncollected Transfer Tax becomes chargeable on any supply of goods or services by Eos Worldwide, they will issue an invoice to the franchisee, who will then pay an amount equal to the Transfer Tax in addition to the fees for the supply of goods or services. Franchisees also agree to act as the importer for tax and customs purposes for any goods delivered by Eos Worldwide and will account for import taxes and duties as required by applicable law.