Under what circumstances is Carls Licensor not liable for loss or damage?

According to Carls' 2024 Franchise Disclosure Document, the licensor is not liable for loss or damage under specific circumstances outlined in the agreement. Specifically, Carls will not be liable for any loss or damage due to delays caused by acts of God, strikes, lock-outs or other industrial disturbances, war, riot, epidemic, fire or other catastrophe, or acts of government or other third parties. Additionally, Carls is not liable for food spoilage or loss of business, or any other cause not within its control. This is commonly referred to as a 'force majeure' clause.

This means that if a Carls franchise experiences losses or damages due to events like natural disasters, labor disputes, or governmental actions, the franchisee will not be able to hold Carls liable for those losses. The franchisee bears the risk of these types of uncontrollable external events.

This type of clause is relatively standard in franchise agreements, as it protects the franchisor from liability for events outside of their direct control. However, prospective Carls franchisees should carefully consider the implications of this clause and ensure they have adequate insurance coverage to protect their business from these types of risks. Understanding the scope of this clause is crucial for assessing the potential financial risks associated with operating a Carls franchise.