Under what circumstances is Extreme Art Studio not liable for a delay in fulfilling its obligations?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.2.3 Neither we nor you shall be liable for any delay in the fulfilment of or failure to fulfil its obligations in whole or in part (other than the payment of money as may be owed by a party) under this Franchise Agreement where the delay or failure is solely due to Force Majeure.
In the event of Force Majeure, the parties' obligations shall be extended or relieved only to the extent the parties are respectively necessarily prevented or delayed in such performance during the period of such Force Majeure.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, neither Extreme Art Studio nor the franchisee will be held liable for delays or failures to fulfill obligations under the Franchise Agreement if these issues arise due to Force Majeure. This protection does not extend to the payment of money owed by either party.
Force Majeure, in this context, refers to events beyond the reasonable control of the parties involved, such as natural disasters, war, or government regulations. If such an event occurs, the obligations of both Extreme Art Studio and the franchisee will be extended or relieved only to the extent that the event necessarily prevents or delays performance.
This clause provides a degree of security for both the franchisor and franchisee, acknowledging that unforeseen circumstances can disrupt business operations. However, it's important to note that this clause does not excuse monetary obligations; franchisees are still responsible for making required payments, even in the event of a Force Majeure. Franchisees should carefully review the definition of Force Majeure within the franchise agreement to fully understand what events are covered.