Is negligence a factor in determining excused nonperformance for a Coffee News franchise?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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, negligence is a factor in determining excused nonperformance. Specifically, the agreement states that nonperformance by either party is excused if performance is rendered impossible due to events such as strikes, fires, floods, governmental actions, orders, or restrictions.
However, this excuse is conditional. The failure to perform must be beyond the control of the non-conforming party and not caused by their negligence. This means that if Coffee News or the franchisee's inability to fulfill their obligations is due to their own carelessness or lack of reasonable care, they cannot claim excused nonperformance.
For a prospective Coffee News franchisee, this clause highlights the importance of due diligence and responsible management. Franchisees must take reasonable steps to prevent foreseeable issues that could hinder their performance. Failure to do so could result in the franchisee being held liable for nonperformance, even if external factors contribute to the situation. This provision serves to protect both the franchisor and franchisee by ensuring that neither party can escape their contractual obligations due to their own negligence.