What is the franchisee's obligation to limit damages to Hydrodog when invoking the force majeure clause?

According to Hydrodog's 2025 Franchise Disclosure Document, if a franchisee invokes the force majeure clause, they must use reasonable efforts to limit damages to Hydrodog. The force majeure clause excuses either party from liability for non-performance due to specific events. These events include transportation shortages, inadequate supplies, compliance with laws, acts of God, war, strikes, pandemics, or other similar causes.

To invoke the clause, the franchisee must provide written notice to Hydrodog as soon as reasonably practical, but no later than ten days after learning of the event. The delay in performance will be extended or excused as reasonable, but this does not excuse payments already owed or those due thereafter. Performance must resume as soon as possible unless both parties agree to an extension in writing. The period of excused non-performance cannot exceed six months.

This requirement to limit damages means a Hydrodog franchisee needs to take proactive steps to minimize any financial or operational harm to Hydrodog resulting from the force majeure event. What constitutes 'reasonable efforts' will depend on the specific circumstances, but it could include finding alternative suppliers, mitigating service disruptions, or taking other actions to lessen the impact on Hydrodog. Franchisees should document these efforts to demonstrate compliance with this obligation.