What specific taxes is a Floors To Go franchisee responsible for?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that you will (a) maintain high moral and ethical standards of conduct and shall neither engage in, nor allow others to engage in, deceptive, fraudulent, or unethical practices of any kind in connection with the "Floors To Go" name or FTG System, nor suffer, nor allow any part thereof to be used for immoral or illegal purposes or in any illegal manner; (b) provide an efficient, courteous, and high quality service to the public; (c) operate your Showroom continuously and in compliance with this Agreement; (d) promote the FTG System and not provide or participate in any other buying, merchandising, sales or marketing service, group, cooperative, system or franchise for floor covering or window treatment products or accessories which offers products similar to those offered by us while you are a member of the FTG System; (e) take sole responsibility for the performance of all obligations arising out of the operation of your business, including, but not limited to, workers' compensation, real estate, sales, payroll, franchise, income, personal property, and gross receipt taxes levied or assessed by reason of such operation; (f) indicate clearly the independent ownership of your business in all public records, and that the operations of said business are separate and distinct from the operation of Floors To Go, LLC; (g) use all reasonable means to promote and encourage the purchase of Floors To Go products by the public, and use your best efforts to create and maintain goodwill among the public towards the names "Floors To Go" and toward the FTG System; and (h) promptly provide us with written notice of any infringement of, or challenge to, your use of the FTG Marks.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, franchisees are responsible for specific taxes related to their business operations. This includes, but is not limited to, workers' compensation, real estate, sales, payroll, franchise, income, personal property, and gross receipt taxes. These taxes are levied or assessed due to the operation of the Floors To Go franchise.
As a prospective franchisee, it is crucial to understand that these tax obligations are solely the responsibility of the franchisee. Floors To Go, LLC, the franchisor, is not liable for these taxes. This means franchisees must budget and plan for these expenses to ensure compliance with all applicable tax laws and regulations.
Prospective Floors To Go franchisees should consult with a tax professional to fully understand their tax obligations at the federal, state, and local levels. This will help in accurately forecasting expenses and maintaining the financial health of the franchise. Understanding these tax responsibilities is a key aspect of operating a Floors To Go franchise successfully.