What events are considered a 'Force Majeure Event' that could affect a Beauty Bungalows franchise?
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, a 'Force Majeure Event' includes acts of God such as tornadoes, earthquakes, hurricanes, floods, fire, or other natural catastrophes. It also encompasses war (declared or undeclared), riot, terrorist acts, cybersecurity incidents, or other civil disturbances, as well as epidemics and pandemics.
These events must materially and adversely affect a party's ability to perform their obligations under the franchise agreement and must be outside the reasonable control of the affected party to qualify as a 'Force Majeure Event'. This definition is important for prospective franchisees because it outlines specific circumstances under which Beauty Bungalows or the franchisee may be excused from fulfilling contractual obligations.
However, it's crucial to note that even if a 'Force Majeure Event' occurs, the franchisee is still responsible for paying royalty fees and other fees, and such an event will not excuse or delay construction, lease, development, or opening deadlines. Franchisees should be aware of these limitations and consider how such events might impact their business operations and financial obligations.