How are Transfer Taxes calculated for an Eos Worldwide franchise?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Transfer Taxes are calculated by multiplying the fees payable by you (excluding the amount payable as a Transfer Tax) for the taxable supply of goods or services by the prevailing rate.
- (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 the 2025 FDD, Eos Worldwide calculates Transfer Taxes by multiplying the fees payable by the franchisee (excluding the Transfer Tax itself) for the taxable supply of goods or services by the prevailing tax rate. This means the tax is a percentage of the cost of goods and services provided to the franchisee that are subject to tax.
The franchisee is responsible for cooperating fully with Eos Worldwide to provide any information and records needed for tax credit, exemption, or refund applications. This includes assisting Eos Worldwide in applications to taxing authorities regarding Transfer Tax credits, exemptions, or refunds available for any withholding or other taxes paid or payable by the franchisee. The franchisee must also register for Transfer Tax purposes as required by law, collect all applicable Transfer Taxes on sales, revenue, and receipts, and remit them to the relevant tax authorities.
If either the franchisee or Eos Worldwide has to pay or reimburse the other for any cost related to Transfer Tax liability, the amount is first reduced by any input tax credit the receiving party is entitled to. If Eos Worldwide is required to refund any amounts to the franchisee, they are not required to refund any portion that was withheld to comply with tax law until they receive a refund from the applicable taxing authority. Additionally, if any 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 the amount of the Transfer Tax in addition to the fees for the goods or services.
To claim any exemption from Transfer Taxes, the franchisee must provide Eos Worldwide with timely proof of exemption as required by applicable law, including tax identification numbers and certifications. It is the franchisee's responsibility to ensure that their proof of exemption remains current, and they must indemnify Eos Worldwide for any tax claims, including interest and penalties, resulting from their failure to maintain exempt status. 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 law.