When are sales or similar taxes due to Marble Slab Creamery?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit (1) | Cost of audit plus interest on unpaid amount of 1.5% interest per month and $25 per week (2) | 30 days after billing | Cost of audit payable only if audit shows an understatement in any payment of at least 2% |
| Indemnification | Varies | Varies | Limited to certain circumstances - See Item 9 |
| Reimbursement of Cost of Insurance (1) | Our cost to procure insurance and a reasonable fee to cover our related expenses | On demand | If you fail to secure required insurance coverage, we can obtain it for you |
| Product, Service, Supplier and Service Provider Review | Our reasonable cost of inspecting the supplier, testing the proposed product, or evaluating the service provider or proposed service, including personnel and travel costs; this cost will not exceed $5,000 | On demand | Payable if you wish to offer products or use any supplies, equipment, or services that we have not approved or wish to purchase from a supplier or service provider that we have not approved, whether or not we approve the item, service, supplier, or service provider. |
| Unapproved Product/Supplier Fee (1) | $500 per day | On demand | If you sell unapproved items or purchase from unapproved suppliers, we can require you to pay this fee. |
| Damages, costs and expenses, including attorneys' fees (1) | Amounts we incur | On demand | You must pay us if we incur these as a result of your default, or in order to enforce any provision of the Agreement |
| Sales or similar taxes (1) | Sales, gross receipts and similar taxes imposed on us because of payments you make | On demand | Payment not required if we are credited against taxes we otherwise owe |
Source: Item 6 — OTHER FEES (FDD pages 23–32)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, franchisees are required to pay sales, gross receipts, and similar taxes imposed on Marble Slab Creamery due to payments the franchisee makes. These taxes are due to Marble Slab Creamery 'on demand.' However, payment is not required if Marble Slab Creamery receives a credit against taxes they otherwise owe.
This means that if a franchisee's payments to Marble Slab Creamery trigger sales or similar taxes for the franchisor, the franchisee is responsible for covering those tax obligations. The 'on demand' payment schedule suggests that Marble Slab Creamery will notify franchisees when these tax payments are due, rather than adhering to a fixed schedule.
It is important for prospective Marble Slab Creamery franchisees to understand this obligation, as it can impact their overall operating costs. Franchisees should budget for these potential tax liabilities and maintain clear communication with Marble Slab Creamery to ensure timely payment and avoid any penalties. Understanding the specific types of payments that trigger these taxes and the process for calculating the amounts due will be crucial for financial planning.