Under what circumstances is Fat Shack required to collect taxes from the franchisee?

According to Fat Shack's 2025 Franchise Disclosure Document, the franchisee is responsible for paying all taxes related to the operation of the Fat Shack restaurant. The document does not state any circumstances under which Fat Shack would collect taxes from the franchisee. Instead, the franchisee is explicitly required to promptly pay all federal, state, county, and local taxes when due. This includes any accounts payable or other indebtedness incurred while operating the Fat Shack restaurant.

This means that as a Fat Shack franchisee, you are responsible for managing and remitting all applicable taxes, such as sales tax, income tax, and employment taxes, directly to the relevant tax authorities. Fat Shack does not act as an intermediary for tax collection from the franchisee. Franchisees must ensure they understand and comply with all tax obligations in their specific location.

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. Failure to properly manage and pay taxes can result in penalties, interest charges, and legal issues, which could negatively impact the financial health and operation of the Fat Shack franchise.