Are monetary payment obligations to City Publications subject to the force majeure clause?
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, monetary payment obligations are explicitly excluded from the force majeure clause. The force majeure clause generally excuses a party from liability or responsibility for delays due to events beyond their control, such as strikes, acts of God, or war.
For a City Publications franchisee, this means that even if unforeseen circumstances like a natural disaster or government regulation disrupt their business operations, they are still obligated to make all payments to City Publications as agreed in the franchise agreement. Failure to make timely payments, even under force majeure conditions, could result in penalties or breach of contract.
This is a significant point for prospective franchisees to consider, as it highlights the importance of financial planning and risk management. Franchisees should ensure they have sufficient financial reserves or insurance coverage to meet their payment obligations to City Publications, even during challenging times. It is also advisable to discuss potential scenarios and contingency plans with City Publications to understand their flexibility and support in such situations.