How are federal income taxes handled for Pump It Up, and who is responsible for paying them?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Taxes. We will have no liability for any sales, use, service, occupation, excise, gross receipts, income, property, or other taxes, whether levied upon you or the Franchised Business, due to the business you conduct (except for our income taxes). You are responsible for paying these taxes and must reimburse us for any taxes that we must pay to any state taxing authority on account of either your operation or payments that you make to us.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, franchisees are responsible for all taxes related to their business, except for the franchisor's income taxes. Pump It Up will not be liable for any income taxes related to the franchisee's business.
Specifically, the franchisee is responsible for sales, use, service, occupation, excise, gross receipts, income, property, or other taxes levied upon them or their franchised business due to the business they conduct. This means that franchisees must handle and pay all applicable taxes related to their Pump It Up location, as would be expected of any independent business owner.
Furthermore, if Pump It Up is required to pay any taxes on behalf of the franchisee to a state taxing authority due to the franchisee's operations or payments made to Pump It Up, the franchisee is obligated to reimburse Pump It Up for those tax payments. This condition ensures that the franchisee bears the ultimate responsibility for all taxes associated with their business activities, even if Pump It Up initially remits those taxes to the relevant authorities.