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Under what circumstances can an Atwell Suites Eligible Participant terminate a Service Component without liability for termination fees due to a force majeure event?

Atwell_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 10.4 Force Majeure. Neither. Except for payment of amounts due (unless Customer is unable to pay is caused because of a Force Majeure event), neither party will be liable for any delay, failure in performance, loss or damage due to fire, explosion, cable cuts, power blackout, earthquake, flood, strike, embargo, labor disputes, acts of civil or military authority, war, terrorism, acts of God, pandemic, civil unrest, acts of a public enemy, acts or omissions of carriers or suppliers, unanticipated acts of regulatory or governmental agencies or other causes beyond such party's reasonable control. If the force majeure event continues to prevent the performance of any Service Component for more than ninety (90) days, Eligible Participant may, upon notice to AT&T during the continuance of the force majeure event, terminate such Service Component so affected without liability for any termination fees, shortfall charges or cancellation charges.

Source: Item 23 — Receipts (FDD pages 99–486)

What This Means (2025 FDD)

According to Atwell Suites' 2025 Franchise Disclosure Document, an Eligible Participant can terminate a Service Component without incurring termination fees, shortfall charges, or cancellation charges under specific force majeure conditions. A force majeure event includes incidents like fire, explosion, cable cuts, power blackouts, earthquakes, floods, strikes, embargoes, labor disputes, acts of civil or military authority, war, terrorism, acts of God, pandemics, civil unrest, acts of a public enemy, acts or omissions of carriers or suppliers, unanticipated acts of regulatory or governmental agencies, or other causes beyond a party's reasonable control.

To qualify for termination without fees, the force majeure event must continuously prevent the performance of the Service Component for more than ninety (90) days. The Eligible Participant must then provide notice to AT&T during the continuation of the force majeure event to terminate the affected Service Component.

However, this clause does not excuse the customer from payment of amounts due unless the inability to pay is directly caused by a force majeure event. This condition ensures that while Atwell Suites franchisees are protected from certain liabilities due to unforeseen circumstances, they are still responsible for their financial obligations unless those obligations are directly impacted by the force majeure event.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.