Does the definition of 'Force Majeure Event' for a Beauty Bungalows franchise include pandemics?

According to Beauty Bungalows' 2025 Franchise Disclosure Document, the definition of "Force Majeure Event" does include pandemics. Specifically, the FDD defines a Force Majeure Event as events that materially and adversely affect a party's ability to perform, provided they are not within the reasonable control of the affected party.

The definition encompasses a range of events, including acts of God like tornadoes, earthquakes, hurricanes, floods, and fires, as well as war, riots, terrorist acts, cybersecurity incidents, and other civil disturbances. Importantly, the definition explicitly includes epidemics and pandemics. This means that if a Beauty Bungalows franchisee's ability to perform their obligations under the franchise agreement is materially and adversely affected by a pandemic, and the pandemic is outside of their reasonable control, it may be considered a Force Majeure Event.

However, the FDD also stipulates that a Force Majeure Event cannot be used as a defense for the non-performance of obligations related to royalty fees, other fees, or any construction, lease, development, or opening deadlines. Therefore, while a pandemic may excuse other types of non-performance, it does not excuse a franchisee's financial obligations or development deadlines. Franchisees must provide written notice of a Force Majeure Event within five days of its occurrence, including its nature, anticipated duration, and actions taken to minimize its effect. Failure to provide timely notice waives any rights under this section.

If the suspension of performance continues for 35 days and would constitute a default under the agreement, the parties will meet to discuss potential amendments to the agreement. If no agreement is reached within 10 days and the suspension continues, Beauty Bungalows has the right to terminate the agreement. This clause highlights the importance of communication and potential negotiation in the event of a prolonged Force Majeure Event, but also underscores the franchisor's right to terminate the agreement under certain conditions.