Does the 'Force Majeure' clause extend the term of the City Wide franchise agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 23.4 Force Majeure.
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 will be liable or responsible for any delays due to strikes, lockouts, casualties, acts of God, pandemics, war, governmental regulation or control or other causes beyond the reasonable control of the parties, and in any event the time period for the performance of an obligation under this Agreement will be extended for the amount of time of the delay.
This clause will not apply or not result in an extension of the Term of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Force Majeure clause does not extend the term of the franchise agreement. The FDD states that while delays in performance due to events like strikes, acts of God, pandemics, or governmental regulations are excusable, the time period for the performance of an obligation under the agreement will be extended for the amount of time of the delay. However, this clause specifically excludes any extension to the overall term of the agreement.
This means that if unforeseen circumstances covered by the Force Majeure clause cause delays in either City Wide's or the franchisee's obligations (excluding monetary payments), the affected party will not be held liable during the period of the event. The time to fulfill the obligation will be extended by the duration of the delay.
However, it is crucial to note that this extension applies only to the performance of specific obligations and does not alter the original end date of the franchise agreement. Therefore, a City Wide franchisee should be aware that even if a Force Majeure event significantly impacts their business operations, the franchise term will not be automatically prolonged.