Is an Eos Worldwide franchisee required to indemnify Eos Worldwide for tax liabilities?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
on thirty (30) days' notice to you.
10.11 Payment of Debts.
You are solely responsible for selecting, retaining and paying your Personnel; the payment of all invoices for the purchase of goods for use in the Franchise; and determining whether, and on what terms, to obtain any financing or credit which you deem advisable or necessary for the conduct of the Franchise. You shall pay all current obligations and liabilities to suppliers, lessors and creditors on a timely basis and indemnify us in the event that we elect to pay any of your obligations in order to preserve the relationship between Approved Suppliers and EOS Franchise System franchisees. You shall make prompt payment of all local, state, provincial, federal, national or international taxes, including individual and corporate taxes, sales and use taxes, franchise taxes, goods and services taxes, gross receipts taxes, employee withholding taxes and other remittances, FICA taxes, and personal property and real estate taxes, arising from your operation of the Franchise. You shall indemnify us in the event that we are held responsible for these taxes and other amounts.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 FDD, Eos Worldwide franchisees are responsible for paying all local, state, provincial, federal, national, or international taxes related to their franchise operations. These taxes include individual and corporate taxes, sales and use taxes, franchise taxes, goods and services taxes, gross receipts taxes, employee withholding taxes and other remittances, FICA taxes, and personal property and real estate taxes.
The franchisee must indemnify Eos Worldwide if the franchisor is held responsible for these taxes or other amounts. Indemnification means the franchisee will protect Eos Worldwide from financial loss by covering the costs of the tax liabilities if Eos Worldwide is required to pay them.
In addition to tax obligations, Eos Worldwide franchisees are responsible for selecting, retaining, and paying their personnel, as well as paying all invoices for goods used in the franchise. They are also responsible for determining whether to obtain financing or credit for their business. Franchisees must pay all current obligations and liabilities to suppliers, lessors, and creditors on time and indemnify Eos Worldwide if the franchisor elects to pay any of the franchisee's obligations to maintain relationships with approved suppliers.