factual

What information must be included in the notice of a Force Majeure Event given to Belocal?

Belocal Franchise · 2025 FDD

Answer 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 must promptly notify the other party. This notice must include a description of the event itself. The notice must also state how long the party anticipates the event will affect their ability to meet the agreement's requirements. Finally, the notice must include a plan for how the party will resume operations under the agreement, which they must then diligently carry out.

In practical terms, this means that if a Belocal franchisee experiences an event like a natural disaster that prevents them from fulfilling their obligations, they need to inform Belocal immediately. The notification should be detailed, explaining what happened (e.g., a fire at their office), how long they expect the disruption to last (e.g., two weeks while repairs are made), and what steps they are taking to get back on track (e.g., working remotely, securing a temporary office space).

The FDD also states that the affected party is only liable for failing to give timely notice to the extent that the delay causes actual damage. Belocal defines a "Force Majeure Event" as 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.

This clause protects both Belocal and its franchisees from liability for events outside their control, provided they give proper notice and make reasonable efforts to resume operations. Franchisees should be aware of the specific requirements for notification to ensure they can invoke this clause if needed.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.