Under the Floyds 99 agreement, what taxes is the Franchisor required to collect from the Developer?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall have no liability for Developer's obligations to pay any third parties, including without limitation, banks, other lenders, government agencies, any product vendors, or any sales, use, service, occupation, excise, gross receipts, income, property or other tax levied upon Developer, Developer's property, the FLOYD'S 99 Shop(s) developed
under this Agreement or upon Franchisor in connection with the sales made or business conducted by Developer (except any taxes Franchisor is required by law to collect from Developer with respect to purchases from Franchisor).
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 Franchising, LLC has no liability for the Developer's obligation to pay taxes. These taxes include sales, use, service, occupation, excise, gross receipts, income, property, or other taxes levied upon the Developer, the Developer's property, or the Floyds 99 shop.
However, there is an exception. Floyds 99 is required to collect from the Developer any taxes that the Franchisor is legally obligated to collect with respect to purchases from Floyds 99.
This means that as a prospective Floyds 99 franchisee, you will be responsible for paying all applicable taxes related to your business. The only exception is if there are specific taxes that Floyds 99 is legally required to collect from you regarding your purchases from them; in that case, Floyds 99 will handle those specific tax collections.