Does the force majeure clause result in an extension of the term of the Aw franchise agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.7 Force Majeure. Whenever a period of time is provided in this Agreement for either party to do or perform any act or thing, except the payment of monies, neither party shall be liable or responsible for any delays due to strikes, lockouts, casualties, acts of God, war, pandemic, governmental regulation or control or other causes beyond the reasonable control of the parties, and in any event said time period for the performance of an obligation hereunder shall be extended for the amount of time of the delay. This clause shall not apply or not result in an extension of the term of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the force majeure clause in the franchise agreement does not result in an extension of the term of the agreement. The clause addresses potential delays in performance caused by events like strikes, acts of God, or governmental regulations.
Specifically, while the force majeure clause allows for an extension of time to perform obligations under the agreement (excluding monetary payments) due to such events, it explicitly states that it will not extend the overall term of the franchise agreement. This means that even if unforeseen circumstances delay certain actions, the franchise's expiration date remains unchanged.
For a prospective Aw franchisee, this means that events beyond their control, while excusing delays in certain performances, will not prolong the duration of their franchise. The franchisee should be aware that the franchise term will still end on the originally agreed-upon date, regardless of any force majeure events that may occur during the franchise term.