Under what circumstances is a party not held liable for failing to comply with the Belocal 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.
- E. Severability. Except as expressly provided to the contrary herein, each portion, section, part, term, and provision of this Agreement shall be considered severable;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a party may not be held liable for failing to comply with the terms of the franchise agreement under specific circumstances related to 'Force Majeure'. 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 or unavoidable events that are beyond the party's control and render them completely incapable of performing their obligations under the agreement.
To be excused from liability, the affected party must promptly notify the other party of the Force Majeure Event, including a description of the event, its expected duration, and a plan for resuming operations under the agreement. Failure to provide timely notice may result in liability for damages actually caused by the delay.
In the event of a 'Crisis' that may have a significant negative impact on Belocal, the franchisee, the publication, or the brand, Belocal may establish emergency procedures requiring the franchisee to temporarily cease publishing the Publication. In such cases, Belocal will not be liable to the franchisee for any resulting losses or costs, including consequential damages or lost profits.