In the event of a Force Majeure, what is the Belocal franchisee's obligation to provide a description of the event?
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, if a Force Majeure Event occurs, the affected party, whether it's the franchisor or the franchisee, must promptly notify the other party. This notification must include a description of the event itself. The notice should also detail how long the party anticipates the event will affect their ability to meet the agreement's requirements. Finally, the affected party must provide a plan for how they intend to resume operations under the agreement, and they must diligently work to implement that plan.
Belocal emphasizes the importance of timely notification, stating that the affected party will only be liable for damages if they fail to provide notice promptly, and even then, only to the extent that the delay actually caused damage. This suggests that Belocal recognizes the potential for unforeseen events to disrupt business operations and aims to work with franchisees to mitigate the impact.
The FDD defines "Force Majeure Event" as circumstances beyond a party's control that make it impossible to fulfill their obligations. These events include acts of God, war, riots, embargoes, acts of terrorism or sabotage, electronic viruses, fire, flood, earthquake, or other unforeseeable and unavoidable circumstances. Except for the requirement to provide timely notice, neither Belocal nor the franchisee will be held responsible for failing to meet the agreement's terms if the failure is due to a Force Majeure Event.