What is the impact of a Force Majeure event on Belocal's obligations under the franchise 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 can excuse a party from liability for failing to comply with the terms of the Franchise Agreement. A "Force Majeure Event" includes events beyond the party's control that make it completely incapable of performing its obligations. Examples listed in the FDD are acts of God, war, riot, embargo, acts of terrorism or sabotage, electronic viruses, fire, flood, and earthquake.
If a Force Majeure Event occurs, the affected party must promptly notify the other party. This notice must include a description of the event, how long the party expects to be affected, and a plan for resuming operations under the agreement. The affected party must then diligently maintain this plan.
The affected party will only be liable for failing to give timely notice of a Force Majeure Event to the extent that the failure to give notice actually caused damage. Except for the duty to provide notice, neither Belocal nor the franchisee will be held liable for failing to meet the agreement's terms if the failure is caused by a Force Majeure Event.