What are some examples of events that could be considered a Force Majeure under the Cinnabon franchise agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
ther with the predecessors, successors, heirs and assigns of each of the foregoing (individually, collectively and in any combination, the "Releasing Parties"), release and forever discharge the Released Parties of and from all manner of actions, causes of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, agreements, controversies, promises, variances, trespasses, damages, judgments, executions, claims and demands whatsoever, in law, admiralty or equity, whether known or unknown, that the Releasing Parties, ever had, now have, or that the Releasing Parties hereafter can or may have for, on or by reason of any matter, cause or thing whatsoever, arising prior to and including the Effective Date. This release shall not apply to any claims arising from representations made in the FDD (including its exhibits) that we delivered to you or your representative.
- 20.4 Force Majeure. A "Force Majeure" is any occurrence, event, or condition beyond your or our reasonable control that is not reasonably foreseeable and cannot be reasonably avoided, which may include an (a) act of God, terrorism, war, insurrection, civil commotion, chemical or nuclear contamination, strike, epidemic, pandemic, or embargo; (b) lack of water, materials, or power specified or reasonably necessary for the operation of your Franchised Business or our business; (c) fire, hurricane, tornado, earthquake, flood, or other unavoidable property casualty; or (d) act or order by a governmental authority (not limited to or caused by the party asserting the Force Majeure) that prevent or materially hinder or delay either party from providing services under this Agreement.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, a Force Majeure event is defined as an unforeseen occurrence beyond reasonable control that cannot be reasonably avoided. These events could significantly impact a franchisee's ability to operate their business.
Examples of Force Majeure events listed in the Cinnabon franchise agreement include acts of God, terrorism, war, insurrection, civil commotion, chemical or nuclear contamination, strikes, epidemics, pandemics, or embargoes. It also includes a lack of essential resources like water, materials, or power necessary for the business's operation. Furthermore, events such as fire, hurricane, tornado, earthquake, flood, or other unavoidable property casualties can be considered Force Majeure events. Lastly, any act or order by a governmental authority that prevents or materially hinders either party from providing services under the agreement can also be classified as a Force Majeure event.
It's important to note that while a Force Majeure event may temporarily relieve a party of certain obligations, it does not excuse payment obligations for monies owed, obligations that existed before the event, or obligations that arise after the event. Additionally, economic hardship, changes in market conditions, or insufficiency of funds are explicitly excluded from being considered Force Majeure events under the Cinnabon franchise agreement. Franchisees should be aware of these limitations and how they might affect their business operations during unforeseen circumstances.