TAXES, PERMITS, AND INDEBTEDNESS Clause Samples
The "Taxes, Permits and Indebtedness" clause assigns responsibility for paying all applicable taxes, obtaining necessary permits, and managing any debts related to the contract or project. Typically, this means that one party—often the contractor or service provider—must ensure all required government fees, licenses, and financial obligations are satisfied during the course of their work. By clearly designating these duties, the clause helps prevent disputes over unexpected costs or legal compliance issues, ensuring that the project proceeds smoothly and in accordance with relevant laws and regulations.
TAXES, PERMITS, AND INDEBTEDNESS. 16.1 Franchisee shall promptly pay, when due, all taxes levied or assessed, including, without limitation, federal, state and local unemployment and sales taxes, and all accounts and other indebtedness of every kind to public and private entities incurred by Franchisee in the conduct of the Franchised Business under this Agreement.
16.2 In the event of any bona fide dispute as to liability for taxes assessed or other indebtedness, such dispute shall be determined in accordance with procedures of the taxing authority or applicable law; however, in no event shall Franchisee permit a tax sale or seizure by levy of execution or similar writ or warrant, or attachment by a creditor to occur against the premises of the Franchised Business or any improvements thereon.
16.3 Franchisee shall, at Franchisee's own cost and expense, comply with all federal, state and local laws, rules, and regulations, and shall timely obtain, and shall keep in force as required throughout the term of this Agreement, all certificates and licenses necessary for the full and proper conduct of the Franchised Business hereunder, including, but not limited to, any building and other required construction permits, franchises to do business, insurance broker's license, fictitious name registrations, sales tax permits, and fire clearances.
16.4 Franchisee shall notify the Franchisor, in writing, within five (5) days following the commencement of any action, suit, or proceeding against Franchisee, and of the issuance of any inquiry, subpoena, order, writ, injunction, award, or decree of any court, agency, or other governmental instrumentality, arising out of, concerning, or which may affect the operation or financial condition of the Franchised Business other than civil proceedings against customers to collect monies owed, but including, without limitation, any criminal action or proceeding brought by Franchisee against employees, customers, or other persons.
TAXES, PERMITS, AND INDEBTEDNESS. 17.01. Franchisee shall promptly pay when due all taxes, accounts and other indebtedness of every kind incurred by Franchisee in the conduct of the Franchised Business under this Agreement.
TAXES, PERMITS, AND INDEBTEDNESS. (a) Regional Franchisee shall promptly pay when due any and all federal, state, and local taxes including, without limitation, unemployment and sales taxes, levied or assessed with respect to any service or products furnished, used or licensed pursuant to this Agreement, and all accounts or other indebtedness of every kind incurred by Regional Franchisee in the operation of the business licensed hereunder.
(b) Regional Franchisee shall comply with all federal, state and local laws, rules and regulation and timely obtain any and all permits, certificates and licenses for the full and proper conduct of the business licensed hereunder.
(c) Regional Franchisee hereby expressly covenants and agrees to accept full responsibility for any and all debts and obligations incurred in its operation of its business.
TAXES, PERMITS, AND INDEBTEDNESS. A. Franchisee shall promptly pay when due all taxes levied or assessed by any federal, state or local tax authority, including, without limitation, unemployment and sales taxes, and all accounts and other indebtedness of every kind incurred by Franchisee in the conduct of the business franchised under this Agreement. Franchisee shall pay to Franchisor an amount equal to any sales tax, gross receipts tax, or similar tax imposed on Franchisor with respect to any payments to Franchisor required under this Agreement, unless the tax is credited against income tax otherwise payable by Franchisor.
B. In the event of any bona fide dispute as to liability for taxes assessed or other indebtedness, Franchisee may contest the validity or the amount of the tax or indebtedness in accordance with procedures of the taxing authority or applicable law; however, in no event shall Franchisee permit a tax sale or seizure by levy of execution or similar writ or warrant, or attachment by a creditor, to occur against the premises of the franchised business, or any improvements thereon.
TAXES, PERMITS, AND INDEBTEDNESS. 19.1 Franchisee shall promptly pay when due all taxes levied or assessed, including, without limitation, unemployment and sales taxes, and all accounts and other indebtedness of every kind incurred by Franchisee in the operation of the Bakery. Franchisee shall pay to Franchisor an amount equal to any sales tax, gross receipts tax, or similar tax (other than income tax) imposed on Franchisor with respect to any payments to Franchisor required under this Agreement.
19.2 In the event of any bona fide dispute as to Franchisee's liability for taxes assessed or other indebtedness, Franchisee may contest the validity or the amount of the tax or indebtedness in accordance with procedures of the taxing authority or applicable law, but in no event shall Franchisee permit a tax sale or seizure by levy or execution or similar writ or warrant, or attachment by a creditor, to occur against the Bakery.
19.3 Franchisee shall comply with all federal, state, and local laws, rules, and regulations and shall timely obtain any and all permits, certificates, or licenses necessary for the proper conduct of the Bakery, including, without limitation, licenses to do business, fictitious name registrations, sales tax permits, and fire clearances.
19.4 Franchisee shall immediately notify Franchisor in writing of the commencement of any action, suit, or proceeding and of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental instrumentality which may adversely affect the operation or financial condition of the Bakery.
TAXES, PERMITS, AND INDEBTEDNESS. 28 12.1. Franchisee Shall Pay Promptly......................................28 12.2. Franchisee Shall Comply With All Laws..............................28 12.3. Notification To V2K................................................28 13.
TAXES, PERMITS, AND INDEBTEDNESS. 17.1 Franchisee shall pay when due all taxes levied or assessed, including, without limitation unemployment and sales taxes, and all accounts payable and other indebtedness of every kind Franchisee incurs in the conduct of Franchisee’s Restaurant.
17.2 In the event of any bona fide dispute as to Franchisee’s liability for taxes assessed or other indebtedness, Franchisee may contest the validity or the amount of the tax or indebtedness in accordance with the procedures of the taxing authority or Law; however, in no event shall Franchisee permit a tax sale or seizure by levy or execution or similar writ or warrant, or attachment by a creditor, including without limitation foreclosure, eviction, or repossession, to occur against the premises of Franchisee’s Restaurant, or any improvements to such premises, or any furnishings, fixtures, equipment, or other assets of Franchisee’s Restaurant.
17.3 Franchisee shall notify HOA in writing within five (5) days of the commencement of any action, suit, or proceeding, and of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental instrumentality, arising out of or related to Franchisee’s Restaurant.
TAXES, PERMITS, AND INDEBTEDNESS. 19.1 Franchisee shall promptly pay to Franchisor an amount equal to any sales tax, gross receipts tax, or similar tax imposed on Franchisor with respect to any payments made by Franchisor on behalf of Franchisee if required under this Agreement, unless the tax is credited against income tax otherwise payable by Franchisor.
19.2 In the event of any bona fide dispute as to liability for taxes assessed or other indebtedness, Franchisee may contest the validity of the amount of the tax or indebtedness in accordance with the procedures of the taxing authority or applicable law; however, in no event shall Franchisee permit a tax sale or seizure by levy of execution or similar writ or warrant, or attachment by a creditor, to occur against the Franchised Business or any of its assets.
19.3 Each party shall notify the other party in writing within five days after the commencement of any action, suit, or proceeding and of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental instrumentality which may materially adversely affect the operation or financial condition of such respective party's business as it relates to this Agreement.
TAXES, PERMITS, AND INDEBTEDNESS. 17.01. Franchisee shall promptly pay when due all taxes, accounts and other indebtedness of every kind incurred by Franchisee in the conduct of the Franchised Business under this Agreement. Notwithstanding the foregoing, Franchisee shall not be deemed in default of this Section 17.01 in the event Franchisee asserts any legal challenge to the validity of any such taxes, accounts and/or other indebtedness and either (i) deposits all such amounts in an escrow account or (ii) provides such evidence as may be requested by Franchisor to establish that Franchisee is financially capable of paying such amount in the event the challenge is denied after due legal or administrative hearings.
TAXES, PERMITS, AND INDEBTEDNESS. Section XX.D. of the Franchise Agreement is hereby deleted in its entirety and replaced by the following: