What specific events constitute force majeure under the Crowne Plaza Agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither. Except for payment of amounts due (unless Customer is unable to pay is caused because of a Force Majeure event), neither party will be liable for any delay, failure in performance, loss or damage due to fire, explosion, cable cuts, power blackout, earthquake, flood, strike, embargo, labor disputes, acts of civil or military authority, war, terrorism, acts of God, pandemic, civil unrest, acts of a public enemy, acts or omissions of carriers or suppliers, unanticipated acts of regulatory or governmental agencies or other causes beyond such party's reasonable control. If the force majeure event continues to prevent the performance of any Service Component for more than ninety (90) days, Eligible Participant may, upon notice to AT&T during the continuance of the force majeure event, terminate such Service Component so affected without liability for any termination fees, shortfall charges or cancellation charges.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, a force majeure event includes specific instances that may excuse either party from liability for delays or failures in performance, with the exception of payment obligations unless the inability to pay is also caused by a force majeure event. These events encompass a range of circumstances beyond reasonable control, such as fire, explosion, cable cuts, power blackouts, earthquakes, floods, strikes, embargoes, labor disputes, acts of civil or military authority, war, terrorism, acts of God, pandemics, civil unrest, acts of a public enemy, acts or omissions of carriers or suppliers, and unanticipated acts of regulatory or governmental agencies.
For a prospective Crowne Plaza franchisee, this clause offers a degree of protection against unforeseen events that could disrupt their ability to operate the franchise. However, it's important to note that the franchisee remains responsible for payments due unless the force majeure event directly impairs their ability to make those payments.
Furthermore, the FDD specifies that if a force majeure event prevents the performance of any Service Component for more than 90 days, the Eligible Participant (likely the franchisee) has the option to terminate the affected Service Component by providing notice to AT&T during the continuance of the event. This termination would not incur liability for termination fees, shortfall charges, or cancellation charges. This provides an exit strategy for the franchisee if the disruption is prolonged and significantly impacts a critical aspect of the business.