Is Browns Chicken liable for failure to perform obligations due to acts of God?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither Brown nor Franchisee shall be liable for loss or damage or be deemed to be in breach of this Agreement if its failure to perform its obligations results from: (1) inadequate supply of transportation services or facilities, equipment, merchandise, supplies, labor, material or energy, or the voluntary forgoing of the right to acquire or use any of the foregoing in order to accommodate or comply with the orders, requests, regulations, recommendations or instructions of any federal, state or municipal government or any department or agency thereof; (2) compliance with any law, ruling, order, regulation, requirement or instruction of any federal, state or municipal government or any department or agency thereof; (3) acts of God; (4) acts or omissions of the other party proven in arbitration or in court; (5) fires, strikes, embargoes, war or riot; or (6) any other similar event or cause. Any delay resulting from any of said causes shall extend performance accordingly or excuse performance, in whole or part, as may be reasonable, except that said causes shall not excuse payments of amounts owed at the time of such occurrence or payment of royalties due on any sales thereafter.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, Browns Chicken is not liable for failure to perform its obligations under the franchise agreement if that failure results from acts of God. This protection extends to the franchisee as well.
Specifically, the FDD states that neither Browns Chicken nor the franchisee will be held liable or considered in breach of the agreement if their failure to perform obligations stems from events like inadequate supply of transportation, compliance with government regulations, acts of God, actions of the other party, fires, strikes, embargoes, war, riot, or any other similar event.
However, this clause does not excuse the franchisee from making payments that were already owed at the time of the event or royalties due on sales after the event. This means that while Browns Chicken may be understanding during a force majeure event, franchisees are still responsible for their financial obligations to the extent possible.