factual

Does the Eos Worldwide franchise agreement specify who is responsible for remitting Transfer Taxes?

Eos_Worldwide Franchise · 2025 FDD

Answer from 2025 FDD Document

For the avoidance of doubt, you shall (i) be registered for Transfer Tax purposes as required by applicable law, (ii) charge and collect all applicable Transfer Taxes on applicable sales, revenue and receipts of any kind derived from the operation of the Franchised Business and (iii) properly remit same to the relevant taxation authorities. Required Licenses, as defined in Section 10.5 below, shall include, without limitation, any applicable local tax or business registrations necessary to evidence that you are acquiring all products and services from us and our affiliates in connection with this Agreement for the purpose of operating your Franchise as a business enterprise (as opposed to a consumer) in all applicable jurisdictions. To claim any exemption from applicable Transfer Taxes imposed on the fees or other amounts under this Agreement and on services or products furnished to you by us or our affiliates, you must timely provide us with proof of exemption as required by applicable law, including applicable tax identification numbers and certifications. It is your sole responsibility to make sure that your proof of exemption remains current, and you shall indemnify us and our affiliates for any claims for any taxes, including interest and penalties, by any such tax or governmental authority or any person or entity acting on behalf of any such authority, for your failure to maintain such exempt status.

Source: Item 23 — RECEIPTS (FDD pages 74–246)

What This Means (2025 FDD)

According to the 2025 Eos Worldwide Franchise Disclosure Document, the franchisee is responsible for handling all Transfer Tax obligations. Specifically, the franchisee must register for Transfer Tax purposes, collect all applicable Transfer Taxes on sales and revenue derived from the Franchised Business, and remit those taxes to the relevant authorities. This includes any local tax or business registrations needed to show the franchisee is acquiring products and services from Eos Worldwide for business operation purposes.

To claim any exemption from Transfer Taxes on fees or services provided by Eos Worldwide, the franchisee must provide timely proof of exemption, including tax identification numbers and certifications. It is the franchisee's responsibility to ensure this proof of exemption remains current. Failure to maintain this exempt status could result in the franchisee being liable for any taxes, interest, and penalties.

The franchisee is required to indemnify Eos Worldwide and its affiliates for any claims related to taxes, interest, and penalties resulting from the franchisee's failure to maintain exempt status. This means the franchisee would be responsible for covering any costs Eos Worldwide incurs due to the franchisee's non-compliance with Transfer Tax requirements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.