What are some examples of events that qualify as Force Majeure under the Aplus Franchise Agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.8 Force Majeure.
No Party shall be deemed in default of this Agreement for any delay or failure to fulfill any obligation (other than a payment obligation) hereunder so long as and to the extent to which any delay or failure in the fulfillment of such obligation is prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure, which shall be defined as those significant events outside the party's control, including but not limited to Acts of God, fire, flood, or other natural forces, war, acts of terrorism, civil unrest, government actions or regulations, national pandemic, or any other event similar to those enumerated above.
Such excuse from liability shall be effective only to the extent and duration of the event(s) causing the failure or delay in performance and provided that the Party has not caused such event(s) to occur and continues to use diligent, good faith efforts to avoid the effects of such event and to perform the obligation.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, a Force Majeure event includes significant events outside a party's control. These events excuse a party from liability for delays or failures to fulfill obligations under the agreement, with the exception of payment obligations.
Examples of Force Majeure events include Acts of God, fire, flood, other natural forces, war, acts of terrorism, civil unrest, government actions or regulations, and national pandemics. The definition also encompasses any other event similar to those specifically listed.
For a franchisee, this means that if their Aplus store is affected by one of these events, they may be excused from certain contractual obligations, provided they didn't cause the event, use diligent efforts to avoid its effects and continue to perform their obligations to the extent possible. This protection is only effective for the duration of the event. It's important to note that this clause does not excuse payment obligations.