Is a Fitstop franchisee required to pay all taxes related to the operation of the franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
hat you are in compliance with all federal, state, and local laws, ordinances, and regulations affecting the operations of the Franchise.
- 11.4.3 You shall pay all taxes, liens, assessments, costs, expenses, debts, salaries, accounts, liabilities, charges, duties, imposts, premiums, fees, damages, and any and all other outlays or responsibilities involving the payment of money or performance of every other nature incurred in, related to, or resulting in any way from, the construction, maintenance, operation and/or discontinuance of the Franchise, and shall provide proof of such action thereof to us, on request.
- 11.4.4 The Parties agree and understand that you will be at all times an independent contractor under this Agreement and will not, at any time, directly or indirectly, hold yourself out as an agent, servant, employee or joint employee of Franchisor. NOTHING IN THIS AGREEMENT CREATES A PARTNERSHIP, JOINT VENTURE, AGENCY, EMPLOYMENT, JOINT EMPLOYMENT OR FIDUCIARY RELATIONSHIP OF ANY KIND. NEITHER FRANCHISOR NOR FRANCHISEE WILL CONSIDER ANY OF YOUR EMPLOYEES TO BE OUR EMPLOYEES OR JOINT EMPLOYEES. Neither you nor any of your employees whose compensation you pay may in any way, directly or indirectly, expressly or by implication, be construed to be our employee or joint employee for any purpose and you shall defend and indemnify us against any such claim.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are responsible for paying all taxes, liens, assessments, costs, and expenses related to the construction, maintenance, and operation of the franchise. This includes debts, salaries, accounts, liabilities, charges, duties, imposts, premiums, fees, damages, and any other outlays or responsibilities involving payment or performance.
Prior to opening their Fitstop franchise, franchisees must provide proof of registration with all relevant taxation authorities. This includes submitting a Federal tax identification number, as well as any state and municipal tax identification numbers. Franchisees must also obtain all necessary permits, approvals, authorizations, and licenses required to operate the franchise in compliance with federal, state, and local laws.
Fitstop franchisees must ensure they comply with all federal, state, and local laws, ordinances, and regulations affecting the operation of their franchise at their own expense. They must also provide proof of tax payments to Fitstop upon request. This requirement underscores the franchisee's role as an independent contractor, responsible for managing all financial and legal obligations associated with their business.