What is the effect of a Force Majeure event on the Belocal franchisee's ability to comply with the agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the occurrence of a Force Majeure Event (as defined below), the party affected thereby must give prompt notice thereof to the other party, together with a description of the event, the duration for which the party expects its ability to comply with the provisions of the Agreement to be affected, and a plan for resuming operation under the Agreement, which the party must promptly undertake and maintain with due diligence.
Such affected party shall be liable for failure to give timely notice only to the extent of damage actually caused.
Except as provided in this Section 15.D., neither party shall be held liable for a failure to comply with any terms and conditions of this Agreement when such
failure is caused by an event of Force Majeure. "Force Majeure Event" shall mean any act of God, war, riot, embargo, act of terrorism or sabotage, electronic viruses, fire flood, earthquake, or other unforeseeable circumstance or unavoidable event which is beyond the control of the party invoking this clause and which renders such party completely incapable of performing its obligations under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a Force Majeure Event may excuse a party from liability for failing to comply with the terms of the Franchise Agreement. A "Force Majeure Event" includes events such as acts of God, war, riots, embargoes, acts of terrorism or sabotage, electronic viruses, fire, flood, earthquake, or other unforeseeable circumstances beyond the party's control that render them completely incapable of performing their obligations.
If a Force Majeure Event occurs, the affected party must promptly notify the other party, describing the event, its expected duration, and a plan for resuming operations under the Agreement. The affected party is only liable for failing to give timely notice to the extent of actual damages caused by the delay.
In practical terms, this clause protects both Belocal and the franchisee from being penalized for circumstances genuinely beyond their control. However, the franchisee must demonstrate that the event made them "completely incapable" of performing their duties, and they must actively plan to resume operations. This clause is fairly standard in franchise agreements, providing a degree of protection against extraordinary events that could disrupt business operations.