Is the Beggars Pizza franchisor responsible for delays caused by epidemics or pandemics?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
20.4 Force Majeure. Neither Franchisor, Franchisor's affiliates, nor Franchisee will be responsible or liable for any delays in the performance of any duties under the Agreement which are not the fault or within the reasonable control of that party including, without limitation, fire, flood, natural disasters, epidemics or pandemics, acts of God, delays in deliveries by common carriers, governmental acts or orders, late deliveries of products or goods or furnishing of services by third party vendors, civil disorders, acts of terrorism, or strikes and any other labor-related disruption, and in any event said time period for the performance of an obligation hereunder will be extended for the amount of time of the delay or impossibility; provided, however, this clause will not apply to and not result in an extension of (a) the time for payments to be made by Franchisee as required by Section 4.5, or (b) the term of the Agreement.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, neither Beggars Pizza nor its affiliates are held responsible or liable for delays in fulfilling their obligations under the franchise agreement if these delays are due to circumstances beyond their control. These circumstances include, but are not limited to, events like fires, floods, natural disasters, epidemics or pandemics, and acts of God. This also extends to delays caused by common carriers, governmental actions, or late deliveries from third-party vendors. Civil disorders, acts of terrorism, strikes, and other labor-related disruptions also fall under this clause.
In such cases, the time period for Beggars Pizza to fulfill its obligations will be extended by the duration of the delay or impossibility. However, this clause does not apply to the franchisee's payment obligations as required by Section 4.5 of the agreement, nor does it extend the overall term of the agreement.
This "force majeure" clause is a fairly standard provision in franchise agreements, designed to protect both parties from unforeseen events that could disrupt business operations. However, it's important for a prospective Beggars Pizza franchisee to understand that while Beggars Pizza may not be penalized for delays caused by events like a pandemic, the franchisee's own obligations, particularly payment obligations, remain in effect.