What events excuse nonperformance by either party under Schedule C for a Coffee News franchise?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Nonperformance of either party shall be excused to the extent that performance is rendered impossible by strike, fire, flood, governmental acts, orders or restrictions, or any other reason where failure to perform is beyond the control and not caused by the negligence of the non-conforming party.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, under Schedule B (which the document states also applies to Schedule C), nonperformance by either the franchisor or the franchisee is excused if performance becomes impossible due to specific events. These events include strikes, fires, floods, governmental acts, orders, or restrictions.
This clause also extends to any other reason where the failure to perform is beyond the control of the non-performing party. However, this excuse is conditional: the failure to perform must not be caused by the negligence of the party claiming the excuse.
In practical terms, this means that if a Coffee News franchisee is unable to fulfill their obligations due to a natural disaster like a flood or a strike that prevents distribution of the Coffee News publication, they may be excused from performance, provided they were not negligent in causing the event. Similarly, Coffee News as the franchisor would be excused from their obligations to the franchisee under the same circumstances. This type of clause is fairly standard in franchise agreements, offering a degree of protection to both parties in the event of unforeseen and uncontrollable circumstances.