What events qualify as 'Force Majeure' under the City Wide franchise agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Delays or failure of any party in the performance of said party's required obligations under this Agreement will be excused only for Acts of God, strikes or work stoppages called by a regional, local or national union, or other acts clearly beyond the control of the parties, provided that prompt notice of such event and of the anticipated delay is given and the party seeking excuse is diligent in attempting to remove or cure such cause and to mitigate the delay.
Performance will be excused only for the duration to the force majeure event.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the franchise agreement contains a 'Force Majeure' clause. This clause excuses delays or failures to perform required obligations under the agreement if they arise from specific events.
These qualifying events include 'Acts of God,' which generally refers to natural disasters or other events outside human control. The clause also covers 'strikes or work stoppages called by a regional, local or national union,' acknowledging potential disruptions from organized labor actions. Finally, it extends to 'other acts clearly beyond the control of the parties,' providing a broader category for unforeseen circumstances that prevent a party from fulfilling their obligations.
However, to be excused from performance, the affected party must provide 'prompt notice' of the event and the anticipated delay. Furthermore, they must demonstrate diligence in attempting to remove or cure the cause of the delay and mitigate its impact. The excuse from performance is limited to the duration of the 'force majeure' event. This means City Wide franchisees need to be proactive in communicating and resolving issues to maintain their standing under the franchise agreement.