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Oops – franchisee didn’t pay sales taxes

An Indianapolis, IN area Dominos pizza franchisee had sales of $6 million across three units but kept the 7% sales tax for himself. Eventually the state of Indiana found out about it and shut him down. I know it’s tempting to keep the sales tax, but how could you expect not to get caught?

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Attorney and advisor with an interest in franchising. Feel free to email me comments and questions on the "Contact Us" page.
2 comments
Joe
Joe

I have worked in the fitness franchise world for several different franchises and at a very well known fitness franchise I used to represent we had a franchisee who kept sales tax for himself for over 7 years before the IRS caught up with him. We had complaints with some of our franchise vendors about him selling supplements for far cheaper than they retail for. It took some years for everyone to understand how he was doing this. However, when the cards fall with tax fraud they reall fall.