What are some examples of events that are explicitly NOT included in the Coffee News Force Majeure clause?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.9 Force Majeure: Neither party shall be held liable or responsible to the other party nor be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any term of this Agreement to the extent, and for so long as, such failure or delay is caused by or results from causes beyond the reasonable control of the affected party including but not limited to wild fire, hurricanes, novel pandemic, quarantine, war, acts of God, provided however, in the event of a novel pandemic during the term of the Agreement, the franchisees shall exercise commercially reasonable efforts to continue the franchised business operation; and when partial payment is agreed by the parties during the novel pandemic, the resumption of full fee payment shall be at the discretion of the franchisor in a reasonable manner. For the avoidance of doubt, Force Majeure shall not include (i) financial distress or the inability of either party to make a profit or avoid a financial loss; (ii) changes in market prices or conditions; or (iii) a party's financial inability to perform its obligations hereunder.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the Force Majeure clause outlines circumstances that excuse either party from liability for failure or delay in performing their contractual obligations. However, certain events are explicitly excluded from this protection.
Specifically, the Force Majeure clause in the Coffee News franchise agreement does not cover financial distress or the inability of either party to make a profit or avoid a financial loss. This means that if a franchisee experiences financial difficulties, they cannot claim Force Majeure to excuse their non-performance of the agreement.
Additionally, changes in market prices or conditions are not considered Force Majeure events. Similarly, a party's financial inability to perform its obligations under the agreement is also not covered. Therefore, franchisees need to be aware that economic factors and their own financial situations will not be considered valid reasons for non-performance under the Force Majeure clause.