What is the Belocal franchisee's responsibility regarding resuming operation after a Force Majeure 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 notice should include a description of the event, how long the party anticipates being unable to meet the agreement's requirements, and a plan for resuming operations under the agreement. The affected party is expected to diligently pursue and maintain this plan.
Belocal defines a "Force Majeure Event" as an unforeseeable and unavoidable event beyond the party's control that makes it completely incapable of performing its obligations. Examples include acts of God, war, riots, embargoes, acts of terrorism or sabotage, electronic viruses, fire, flood, and earthquakes. The party failing to give timely notice will be liable for damages directly caused by the delay.
In practical terms, this means that if a Belocal franchisee experiences a Force Majeure Event, such as a natural disaster that prevents them from operating their publication, they must quickly inform Belocal about the situation. They need to provide details about the event's impact and outline their strategy for getting back to normal operations. This could involve securing a temporary location, replacing damaged equipment, or adjusting publication schedules. By having a clear plan and communicating it effectively, the franchisee can minimize disruptions and demonstrate their commitment to the Belocal brand.