What events constitute force majeure under the Even Hotels agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.4 Force Majeure. 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 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels FDD, a force majeure event includes several specific occurrences that 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 broad range of circumstances beyond the party's reasonable control.
Specifically, the force majeure events listed in the Even Hotels agreement include 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. These events must be beyond the reasonable control of the party experiencing the delay or failure.
If a force majeure event prevents the performance of any service component for more than 90 days, the Eligible Participant has the option to terminate the affected service component by providing notice to AT&T during the continuation of the event. This termination can be done without incurring liability for termination fees, shortfall charges, or cancellation charges. This clause provides a degree of flexibility for the franchisee in the event of prolonged disruptions caused by unforeseen circumstances.