factual

Under the Auntie Annes franchise agreement, what occurrences are considered a 'Force Majeure'?

Auntie_Annes Franchise · 2024 FDD

Answer from 2024 FDD Document

A "Force Majeure" is any occurrence, event, or condition beyond your or our reasonable control that is not reasonably foreseeable and cannot be reasonably avoided, which may include an (a) act of God, terrorism, war, insurrection, civil commotion, chemical or nuclear contamination, strike, epidemic, pandemic, or embargo; (b) lack of water, materials, or power specified or reasonably necessary for the operation of your Franchised Business or our business; (c) fire, hurricane, tornado, earthquake, flood, or other unavoidable property casualty; or (d) act or order by a governmental authority (not limited to or caused by the party asserting the Force Majeure) that prevent or materially hinder or delay either party from providing services under this Agreement.

Source: Item 22 — CONTRACTS (FDD page 106)

What This Means (2024 FDD)

According to the 2024 Auntie Anne's Franchise Disclosure Document, a 'Force Majeure' is defined as an event beyond reasonable control that is not foreseeable and cannot be reasonably avoided. These events may impact the ability of either the franchisee or Auntie Anne's itself to fulfill their obligations under the franchise agreement.

Specifically, the agreement lists several categories of events that qualify as Force Majeure. These include acts of God, terrorism, war, insurrection, civil commotion, chemical or nuclear contamination, strikes, epidemics, pandemics, or embargoes. Additionally, a lack of essential resources like water, materials, or power necessary for operating the Auntie Anne's franchised business can be considered a Force Majeure.

Furthermore, unavoidable property casualties such as fire, hurricanes, tornadoes, earthquakes, and floods are included. Lastly, any act or order by a governmental authority that prevents or significantly hinders either party from providing services under the agreement can also be classified as a Force Majeure, provided that the party asserting the Force Majeure did not cause or limit the act or order by a governmental authority.

Disclaimer: This information is extracted from the 2024 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.