Does the definition of 'Force Majeure Event' for a Beauty Bungalows franchise include riots?
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's 2025 Franchise Disclosure Document, the definition of a 'Force Majeure Event' does include riots. Specifically, the FDD defines a Force Majeure Event as events that materially and adversely affect a party's ability to perform their obligations under the agreement, provided they are outside the reasonable control of the affected party. These events include acts of God, war, riots, terrorist acts, cybersecurity incidents, civil disturbances, epidemics, and pandemics.
This definition is important for prospective Beauty Bungalows franchisees because it outlines the circumstances under which neither the franchisor nor the franchisee will be held liable for failing to meet their contractual obligations. However, it's crucial to note that a Force Majeure Event does not excuse the franchisee from obligations regarding royalty fees or other payments, nor does it automatically extend deadlines for construction, lease, development, or opening.
The FDD states that if a Force Majeure Event occurs, the affected party must provide written notice to the other party within five days, detailing the nature and anticipated duration of the event, as well as any actions being taken to mitigate its impact. 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 discuss potential amendments. If no agreement is reached within ten days and the suspension continues, Beauty Bungalows may terminate the agreement with written notice to the franchisee. This clause ensures that while unforeseen events are taken into consideration, there are still mechanisms in place to address prolonged disruptions and protect the interests of both parties.