Are payments of amounts owed to Hydrodog excused under the force majeure clause?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither we nor you shall be liable for loss or damage or deemed to be in breach of this Agreement if its failure to perform its obligations results from any of the following and is not caused or exacerbated by the non-performing party: (a) transportation shortages, inadequate supply of equipment, merchandise, supplies, labor, material, or energy, or the voluntary forgoing of the right to acquire or use any of the foregoing in order to accommodate or comply with the orders, requests, regulations, recommendations, or instructions of any national, state, provincial, municipal or other government or any department or agency thereof; (b) compliance with any law, ruling, order, regulation, requirement, or instruction of any national, state, provincial, municipal or other government or any department or agency thereof; (c) acts of God; (d) acts of war or insurrection; (e) strikes, lockouts, boycotts, fire and other casualties; (f) pandemics or epidemics; or (g) any other similar event or cause.
Any delay resulting from any of said causes shall extend performance accordingly or excuse performance in whole or in part as may be reasonable, except that said causes shall not excuse payments of amounts owed at the time of such occurrence or payment of amounts or fees thereafter, and as soon as performance is possible the non-performing party shall immediately resume performance, unless both parties mutually agree in writing to extend such period; provided, however, that in no event shall such period of excused non-performance exceed six (6) months.
The ability to invoke this clause is conditioned upon delivery of written notice to the other party stating the basis for such invocation as soon as reasonably practical – in no event longer than ten (10) days – after learning of the basis.
The party invoking this clause shall use reasonable efforts to limit damages to the other party.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the force majeure clause does not excuse the payment of amounts owed to Hydrodog. The clause outlines circumstances such as transportation shortages, compliance with laws, acts of God, war, strikes, pandemics, and other similar events that may excuse a party's failure to perform their obligations under the agreement.
However, the FDD explicitly states that these force majeure events do not excuse the payment of amounts owed at the time of the occurrence or payments/fees due thereafter. This means that even if a Hydrodog franchisee experiences hardship due to a force majeure event, they are still obligated to fulfill their financial obligations to Hydrodog.
The franchisee must provide written notice to Hydrodog within ten days of learning about the event to invoke the clause. While performance may be delayed or excused due to these events, this clause does not provide relief from financial obligations. The non-performing party must resume performance as soon as possible, and the period of excused non-performance cannot exceed six months unless both parties agree to an extension in writing.