What constitutes a cause beyond the Exit franchisee's control that would excuse a failure to operate?

According to Exit's 2025 Franchise Disclosure Document, a franchisee's failure to operate the franchise within the Protected Territory for a specified period will be excused if the failure is due to certain causes beyond the franchisee's control. Specifically, the agreement states that a failure to operate for ten consecutive days, or for twenty days within any thirty-day period, will not be considered a breach if it results from fire, flood, earthquake, or a similar cause.

This clause protects the Exit franchisee from termination if unforeseen disasters prevent them from running their business. It is important to note that the clause specifies 'fire, flood, earthquake or similar cause,' suggesting that the events must be of a comparable scale and impact to those listed. A prospective franchisee should clarify with Exit what other events would qualify under this 'similar cause' provision.

This type of clause is relatively standard in franchise agreements, as it acknowledges that businesses can be temporarily shut down due to circumstances outside of the franchisee's control. However, the specific events covered and the duration of excused non-operation can vary. Franchisees should carefully review these terms to understand their rights and obligations in the event of a disaster.