Are there any exceptions to the 'Force Majeure' clause in 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 generally excuses delays or failures to perform obligations under the agreement due to events beyond a party's control. However, there are specific limitations to this clause.
The clause does not apply to the payment of monies. This means that even if a force majeure event occurs, a City Wide franchisee is still obligated to make all required payments to City Wide in a timely manner. Failure to pay due to a force majeure event is not excused under the agreement.
Additionally, the force majeure clause will not result in an extension of the term of the franchise agreement. Even if a force majeure event causes delays or disruptions, the original expiration date of the franchise agreement remains unchanged. The time period for the performance of an obligation under the Agreement will be extended for the amount of time of the delay.