Does the definition of 'Force Majeure Event' for a Beauty Bungalows franchise include epidemics?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.10 "Force Majeure Event" means acts of God (such as tornadoes, earthquakes, hurricanes, floods, fire or other natural catastrophe), war (declared or undeclared), riot, terrorist act, cybersecurity incident, or other civil disturbances; epidemics; pandemics; or other forces, that materially and adversely affect the ability of a party hereto to perform provided that in all events they are not within the reasonable control of the party affected thereby.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the definition of 'Force Majeure Event' does include epidemics.
The FDD defines a 'Force Majeure Event' as events such as acts of God (like natural disasters), war, riots, terrorist acts, cybersecurity incidents, civil disturbances, epidemics, pandemics, or other forces that significantly and negatively affect a party's ability to perform their obligations. However, these events must be outside the reasonable control of the affected party.
This means that if an epidemic impacts a Beauty Bungalows franchisee's ability to operate, it could be considered a 'Force Majeure Event,' potentially relieving them of certain contractual obligations. However, this does not excuse the franchisee from the obligation to pay Royalty Fees or any other fees, or any construction, lease, development, or opening deadline. The franchisee must notify Beauty Bungalows of the event within five days to claim rights under this clause.
If the suspension of performance continues for 35 days due to the 'Force Majeure Event', Beauty Bungalows and the franchisee will discuss potential amendments to the agreement. If no agreement is reached within ten days and the suspension continues, Beauty Bungalows has the right to terminate the agreement.