Does the force majeure clause in the City Publications agreement apply to the payment of monies?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Whenever a period of time is provided in this Agreement for either party to do or perform any act or thing, except the payment of monies, neither party shall be liable nor responsible for any delays due to strikes, lockouts, casualties, acts of God, war, governmental regulation or control or other causes beyond the reasonable control of the parties, and in any event said time period for the performance of an obligation hereunder shall be extended for the amount of time of the delay. This clause shall not apply nor result in an extension of the term of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the force majeure clause in the franchise agreement does not apply to the payment of monies. This means that franchisees are still obligated to make all payments to City Publications, even if events such as strikes, acts of God, or war occur.
The force majeure clause typically excuses a party from liability if some unforeseen event beyond their control prevents them from fulfilling their contractual obligations. However, in the case of City Publications, this protection specifically excludes monetary payments. This is a fairly common practice in franchising, as franchisors rely on consistent revenue streams to maintain their operations and support franchisees.
For a prospective City Publications franchisee, this means that financial obligations such as royalty fees, advertising fees, and other payments must be met regardless of external disruptive events. Failure to pay due to a force majeure event could still result in penalties or even termination of the franchise agreement. Therefore, franchisees should ensure they have sufficient financial reserves or insurance to cover potential disruptions and maintain payment schedules.