# Franchise Tax Agreement
**This Franchise Tax Agreement ("Agreement") is made and entered into as of [Insert Date], by and between:**
**[Franchisor Name]**
[Franchisor Address]
[City, State, Zip Code]
(Hereinafter referred to as "Franchisor")
AND
**[Franchisee Name]**
[Franchisee Address]
[City, State, Zip Code]
(Hereinafter referred to as "Franchisee")
**WHEREAS**, the Franchisor operates a business known as [Business Name] and has developed a distinctive system for operating said business (the “System”); and
**WHEREAS**, the Franchisee desires to obtain a franchise from the Franchisor to operate a business utilizing the System; and
**WHEREAS**, the parties wish to outline their respective rights and obligations with respect to franchise taxes;
**NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows:**
## 1. Definitions
- **“Franchise Tax”**: Refers to any tax imposed by the state or local jurisdiction on the Franchisee for the right to operate a business under the franchise system.
- **“Tax Year”**: Refers to the calendar year or fiscal year utilized by the Franchisee for tax reporting purposes.
## 2. Franchise Tax Obligations
### 2.1 Franchisee’s Responsibility
The Franchisee agrees to timely pay all franchise taxes, assessments, and other fees imposed by the relevant state and local authorities in connection with the operation of the franchise.
### 2.2 Indemnification
The Franchisee shall indemnify and hold the Franchisor harmless from any claims, demands, or liabilities (including reasonable attorney fees) arising out of the Franchisee’s failure to comply with its franchise tax obligations.
## 3. Franchisor’s Obligations
### 3.1 Provision of Information
Upon the Franchisee’s request, the Franchisor agrees to provide any necessary information or documentation relevant to assist the Franchisee in fulfilling its franchise tax obligations.
### 3.2 Support
The Franchisor may, at its discretion, provide guidance to the Franchisee on compliance with applicable franchise tax laws, but is not responsible for ensuring the Franchisee’s compliance.
## 4. Reporting and Payment
### 4.1 Reporting
The Franchisee shall file all required reports related to franchise taxes in accordance with the applicable laws and regulations.
### 4.2 Payment Schedule
The Franchisee shall pay all franchise taxes due by the deadlines imposed by the governing authorities, and maintain detailed records of such payments.
## 5. Default
In the event the Franchisee fails to pay any franchise taxes as required by this Agreement, the Franchisor may, after providing written notice of such default and a thirty (30) day period to cure, terminate this Agreement.
## 6. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of [Insert State].
## 7. Modifications and Amendments
Any modifications or amendments to this Agreement must be made in writing and signed by both parties.
## 8. Entire Agreement
This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral.
## 9. Severability
If any term or provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue to be valid and enforceable.
**IN WITNESS WHEREOF**, the parties hereto have executed this Franchise Tax Agreement as of the date first above written.
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**Franchisor:**
_________________________________________
[Franchisor Name]
Date: _______________________
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**Franchisee:**
_________________________________________
[Franchisee Name]
Date: _______________________
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*Please ensure that you consult with a qualified attorney to review this document and customize it according to specific legal requirements and obligations pertinent to your jurisdiction.*