What is the Spray Net franchisee's obligation regarding taxes owed on payments to the franchisor?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Taxes. Franchisee must promptly pay when due any and all federal, state, and local taxes, including without limitation, unemployment, workers' compensation, lodging, and sales taxes which are levied or assessed with respect to any services or products furnished, used, or licensed under this Agreement and all accounts or other indebtedness of every kind incurred by Franchisee in the operation of the Franchised Business.
- B. Debts and Obligations. Franchisee hereby expressly covenants and agrees to accept full and sole responsibility for any and all debts and obligations incurred in the operation of the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees are responsible for promptly paying all federal, state, and local taxes related to the services or products they furnish, use, or license under the Franchise Agreement. This includes, but is not limited to, unemployment, workers' compensation, lodging, and sales taxes.
In practical terms, this means a Spray Net franchisee must budget for and remit all applicable taxes on time to the relevant tax authorities. Failing to do so can result in penalties, interest charges, and legal issues. Franchisees should consult with a tax professional to ensure they understand their tax obligations and comply with all applicable laws.
Furthermore, the Spray Net franchisee is solely responsible for all debts and obligations incurred while operating the franchised business. This reinforces the franchisee's financial independence and accountability for all financial aspects of their Spray Net franchise.