For what taxes will Eos Worldwide have no liability in connection with the franchisee's business?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) We will have no liability for any sales, use, service, occupation, excise, gross receipts, income, payroll, property, withholding or other taxes in connection with the business you conduct (except any Transfer Taxes we are required by law to collect from you with respect to purchases from us, subject to Section [4.13
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 FDD, Eos Worldwide will not be liable for several tax obligations related to the franchisee's business operations. These include sales, use, service, occupation, excise, gross receipts, income, payroll, property, and withholding taxes. This means that Eos Worldwide franchisees are solely responsible for managing and paying all these taxes associated with their franchised business.
This arrangement is typical in franchising, where franchisees operate as independent business owners. The franchisee's responsibility extends to all tax-related matters, including accurate calculation, timely filing, and payment of all applicable taxes. Franchisees must ensure they understand their tax obligations and comply with all relevant regulations to avoid penalties or legal issues.
However, there is an exception: Eos Worldwide is responsible for any Transfer Taxes they are required by law to collect from the franchisee with respect to purchases from them. It is important for prospective franchisees to consult with a tax professional to fully understand their tax obligations and ensure compliance with all applicable laws and regulations.