Does the force majeure clause in the City Publications agreement extend the term of the agreement?
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 addresses potential delays in performance due to unforeseen circumstances. The agreement states that neither party will be held liable for delays caused by events such as strikes, lockouts, natural disasters, war, governmental regulations, or other causes beyond their control, except for the payment of monies.
However, the critical point for a City Publications franchisee is that while the force majeure clause allows for an extension of time to fulfill obligations affected by these events, it explicitly states that this clause does not extend the overall term of the Franchise Agreement.
This means that if a force majeure event occurs, a franchisee might get extra time to meet certain requirements, but the expiration date of their franchise agreement remains unchanged. This distinction is important for franchisees to understand, as it clarifies that while they may be protected from penalties for delays caused by uncontrollable events, the length of their franchise term is not affected.