factual

As a Hydrodog franchisee, am I required to pay sales taxes?

Hydrodog Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 18.3 Taxes. We will have no liability for any sales, use, alcohol surcharge, service, occupation, excise, gross receipts, income, payroll, property or other taxes, whether levied upon you or your HydroDog Business, in connection with the business you conduct (except any taxes we are required by law to collect from you with respect to purchases from us). Payment of all such taxes is your responsibility.
  • 18.4 Indemnification. You agree to indemnify, defend and hold harmless us, our affiliates, our parents, and our and our affiliates' and parents' respective shareholders, directors, officers, employees, agents, successors and assignees (the "Indemnified Party(ies)") against and to reimburse any one or more of the Indemnified Parties for all claims, obligations and damages described in this Section, any and all taxes described in this Agreement and any and all claims and liabilities directly or indirectly arising out of your HydroDog Business's operation (even if our negligence is alleged, but not proven) or your breach of this Agreement. For purposes of this indemnification, "claims" includes all obligations, damages (actual, consequential or otherwise) and costs reasonably incurred in the defense of any claim against any of the Indemnified Parties, including, without limitation, reasonable accountants', arbitrators', attorneys', paralegals' and expert witness fees, costs of investigation and proof of facts, court costs, other expenses of litigation, arbitration or alternative dispute resolution and travel and living expenses. We have the right to defend any such claim against us. This indemnity will continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement. Under no circumstances will we or any other Indemnified Party be required to seek recovery from any insurer or other third party, or otherwise to mitigate our, their or your losses and expenses, in order to maintain and recover fully a claim against you. You agree that a failure to pursue such recovery or mitigate a loss will in no way reduce or alter the amounts we or another Indemnified Party may recover from you.

Source: Item 23 — RECEIPTS (FDD pages 43–166)

What This Means (2025 FDD)

According to Hydrodog's 2025 Franchise Disclosure Document, franchisees are responsible for paying all taxes incurred in connection with the operation of their Hydrodog business. This includes sales, use, and other taxes, whether levied upon the franchisee or the business itself. Hydrodog will not be liable for these taxes, except for any taxes they are legally obligated to collect from the franchisee related to purchases from them.

This means that as a Hydrodog franchisee, you must ensure that you understand and comply with all applicable tax laws and regulations. This includes accurately collecting and remitting sales taxes on all taxable goods and services you sell. Failing to do so can result in penalties and legal issues.

Hydrodog also has the right to be indemnified, defended, and held harmless against any claims, obligations, damages, and taxes arising out of the franchisee's Hydrodog business operation. This underscores the importance of franchisees diligently managing their tax obligations and other legal and financial responsibilities to protect both their business and the franchisor from potential liabilities.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.