factual

Under what circumstances is a Chatime party not liable for a delay or failure to perform an obligation?

Chatime Franchise · 2025 FDD

Answer from 2025 FDD Document

22 Force Majeure

  • 22.1 A party (Affected Party) is not liable for any delay or failure to perform an obligation (other than to pay money) under this Agreement caused by:
    • (1) Act of God;
    • (2) War, terrorism, riot, insurrection, vandalism, or sabotage;
    • (3) Strike, lockout, ban, limitation of work, or other industrial disturbance; or
    • (4) Law, rule, or regulation of any government or governmental agency and executive or administrative order or act of general or particular application.
  • 22.2 The Affected Party must notify each other party as soon as practical of any anticipated delay or failure caused by an event referred to in clause 22.1 (Event).
  • 22.3 The performance of the Affected Party's obligation (other than to pay money) is suspended for the period of delay caused by the Event.

Source: Item 23 — Receipts (FDD pages 58–262)

What This Means (2025 FDD)

According to Chatime's 2025 Franchise Disclosure Document, under the "Force Majeure" clause, a party, referred to as the "Affected Party", is not held responsible for any delay or failure to fulfill their obligations under the agreement, except for the obligation to pay money, if such delay or failure is caused by specific events. These events include:

  1. Acts of God:
  2. War, terrorism, riot, insurrection, vandalism, or sabotage:
  3. Strike, lockout, ban, limitation of work, or other industrial disturbance:
  4. Law, rule, or regulation of any government or governmental agency and executive or administrative order or act of general or particular application.

In such cases, the Affected Party must promptly notify the other party about the anticipated delay or failure due to the event. The performance of the Affected Party's obligation, excluding the payment of money, is then suspended for the duration of the delay caused by the event. This clause provides a degree of protection for both Chatime and its franchisees from unforeseen circumstances that are beyond their control, allowing for temporary suspension of contractual obligations without penalty, except for monetary payments.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.