What is the exception to the tax payment obligation for a Capriottis Sandwich Shop franchisee?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither Franchisor nor Franchisee will be liable for loss or damage or be in breach of this Agreement if its failure to perform obligations results from: (i) acts of God; (ii) fires, strikes, embargoes, war, terrorist acts or similar events, or riot; (iii) compliance with the orders, requests, or regulations of any federal, state, or municipal government; or (iv) any other similar event or cause. Any delay resulting from these causes will extend performance accordingly or excuse performance, in whole or in part, as may be reasonable. However, these causes will not excuse payment of amounts owed at the time of the occurrence or payment of amounts due afterward. Under no circumstances do any financing delays, difficulties, or
shortages excuse Franchisee's failure to perform or delay in performing its obligations under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 73)
What This Means (2025 FDD)
According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, neither Capriottis Sandwich Shop nor the franchisee will be held liable or considered in breach of the agreement for failing to fulfill obligations if the failure stems from specific events. These events include acts of God, fires, strikes, embargoes, war, terrorist acts, riots, compliance with governmental orders or regulations, or any other similar event or cause.
In such instances, any resulting delay will extend performance accordingly or excuse performance, either partially or entirely, as deemed reasonable. However, it's crucial to note that these events do not excuse the payment of amounts owed at the time of the occurrence or amounts due afterward.
Furthermore, the agreement explicitly states that financing delays, difficulties, or shortages will not excuse a franchisee's failure or delay in performing their obligations under the Franchise Agreement. This means that even if a franchisee faces financial challenges, they are still expected to meet their contractual obligations to Capriottis Sandwich Shop.