Is an Eos Worldwide franchisee responsible for Transfer Taxes?
Eos_Worldwide Franchise · 2025 FDDAnswer 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.
4.14 No Right to Set-Off.
You agree that you shall not, on grounds of the alleged non-performance or default by us of any of our obligations under this Agreement, withhold payment of any fee or other amount payable to us under this Agreement or otherwise. Notwithstanding any designation by you, we have the right to apply any payments to any past due amounts and accrued interest thereon as we see fit in our discretion, subject to 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 are responsible for handling Transfer Taxes related to their business operations. Specifically, franchisees must register for Transfer Tax purposes as required by law, and they are obligated to collect and remit these taxes on their sales, revenue, and receipts.
The franchisee is also expected to cooperate with Eos Worldwide by providing any information needed for tax-related applications, such as credits, exemptions, or refunds. If Eos Worldwide incurs any costs due to the franchisee's Transfer Tax liability, the franchisee may be required to cover these costs, reduced by any input tax credits Eos Worldwide is entitled to. Conversely, if Eos Worldwide refunds amounts to the franchisee, they are not obligated to refund any portion that was initially withheld to comply with tax law until they receive a refund from the relevant taxing authority.
Furthermore, if any Transfer Tax becomes chargeable on goods or services supplied by Eos Worldwide, the franchisee is required to pay an additional amount equal to the Transfer Tax. The franchisee also agrees to act as the importer for tax and customs purposes for any goods delivered by Eos Worldwide and must account for import taxes and duties as required by law. It is the franchisee's responsibility to provide proof of any tax exemptions and to indemnify Eos Worldwide for any claims resulting from a failure to maintain exempt status.