Under the Extreme Art Studio Franchise Agreement, what constitutes 'Force Majeure'?
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 the 2024 Extreme Art Studio Franchise Disclosure Document, 'Force Majeure' is referenced within the context of waiving obligations under the franchise agreement. Neither Extreme Art Studio nor the franchisee will be held responsible for delays or failures to fulfill their obligations, with the exception of monetary payments, if such issues arise solely due to 'Force Majeure'.
In the event of a 'Force Majeure' situation, the obligations of both Extreme Art Studio and the franchisee will be extended or relieved only to the extent that they are necessarily prevented or delayed in their performance during the period of such 'Force Majeure'. This means that the impact of the 'Force Majeure' event will be directly proportional to the degree of prevention or delay experienced by either party.
This clause provides a degree of protection for both Extreme Art Studio and the franchisee against unforeseen circumstances that are beyond their control. However, it's important to note that the specific events that qualify as 'Force Majeure' are not defined in this excerpt. A prospective franchisee should seek clarification from Extreme Art Studio regarding what events are included under 'Force Majeure' to fully understand the scope of this provision.