Under the City Wide agreement, what events constitute Force Majeure?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Force Majeure.
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, a Force Majeure event excuses a party's failure to perform required obligations under the Franchise Agreement. These events are limited to 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.
For a City Wide franchisee, this means that if their ability to fulfill their obligations under the agreement is hindered by one of these specific events, they may be excused from performance. However, to be excused, the franchisee must provide prompt notice of the event and anticipated delay to City Wide.
Furthermore, the franchisee must demonstrate diligence in attempting to remove or cure the cause of the delay and mitigate its impact. The excuse of performance is only valid for the duration of the Force Majeure event. This clause protects both City Wide and its franchisees from unforeseen circumstances that could disrupt business operations, provided the affected party takes reasonable steps to address and resolve the issue.