Does 'Force Majeure' excuse payments of amounts owed to All County?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 25.6.2. acts of nature;
- 25.6.3. fires, strikes, embargoes, war or riot; or
- 25.6.4. any other similar event or cause.
- 25.7. Extend Performance. Any delay resulting from any force majeure causes will extend performance accordingly or excuse performance, in whole or in part, as may be reasonable, except that these causes will not excuse payments of amounts owed.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, a 'force majeure' event will not excuse a franchisee from making payments of amounts owed to All County. The FDD defines 'force majeure' as events such as acts of nature, fires, strikes, embargoes, war, riot, or any other similar event or cause. While these events may allow for an extension of performance or excuse performance in whole or in part, they do not excuse the payment of debts owed to All County.
This means that even if unforeseen circumstances like a natural disaster or widespread strike significantly impact an All County franchisee's ability to operate, the franchisee is still obligated to fulfill their financial commitments to All County. This could create a challenging situation for franchisees who experience business disruptions due to force majeure events but must still meet their payment obligations.
This clause is fairly standard in franchise agreements, as franchisors rely on consistent revenue streams to maintain their operations and support the franchise system. However, prospective All County franchisees should carefully consider this provision and evaluate their ability to manage financial obligations even during times of crisis or external disruption. Understanding the potential risks and having contingency plans in place is crucial for ensuring the long-term viability of the franchise.