Under what circumstances is the abandonment of the Bor Restoration business excused?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
- a. You cease to operate the Business or otherwise abandon the Business for 14 consecutive days, or any shorter period that indicates your intent to discontinue operation of the Business, unless and only to the extent that full operation of the Business is suspended or terminated due to Force Majeure or other similar causes beyond your control and not related to the availability of funds to you.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, a franchisee's cessation of business operations for a period of 14 consecutive days, or any shorter period indicating an intent to discontinue the business, typically constitutes abandonment and a breach of the franchise agreement.
However, Bor Restoration provides an exception: such abandonment is excused if the suspension or termination of business operations is due to "Force Majeure or other similar causes beyond your control and not related to the availability of funds to you." This means that if unforeseen circumstances, such as natural disasters or other events outside the franchisee's control, prevent the business from operating, it will not be considered a breach of contract.
It is important to note that the exception explicitly excludes situations where the inability to operate is due to a lack of funds. This distinction highlights that Bor Restoration expects franchisees to maintain adequate financial resources to sustain their business, and financial difficulties will not excuse abandonment. Therefore, prospective franchisees should carefully consider their financial stability and ability to manage unforeseen events before entering into a franchise agreement with Bor Restoration.