Under the Camp Margaritaville agreement, what events qualify as force majeure?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
No party shall be liable or responsible to the other party, or be deemed to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement or any SOW, when and to the extent such party's failure or delay is caused by or resultsfromforcemajeure events, including but not limited to acts of God, flood,fire, earthquake, pandemics, or explosion; war, invasion, hostilities, government order, law, or action; embargoes or blockades in effect on or after the date of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a force majeure event includes occurrences that prevent a party from fulfilling their obligations under the agreement. These events encompass acts of God such as floods, fires, earthquakes, pandemics, or explosions. Additionally, force majeure includes war, invasion, hostilities, government orders, laws, or actions, as well as embargoes or blockades that are in effect on or after the agreement's date.
This clause protects both Camp Margaritaville and the franchisee from liability if they are unable to perform their duties due to these extraordinary circumstances. It ensures that neither party is considered in default or breach of the agreement when such events occur. This is a fairly standard clause in franchise agreements, designed to allocate risk in unpredictable situations.
For a prospective Camp Margaritaville franchisee, understanding this clause is crucial. It provides a degree of security, knowing that certain unforeseen events will not automatically result in penalties or legal repercussions. However, it's important to note that the clause specifically mentions events in effect on or after the agreement date, which may imply that pre-existing conditions are not covered. Franchisees should carefully assess the potential risks in their specific location and consider whether additional insurance or contingency plans are necessary to mitigate the impact of potential force majeure events.