What conditions must be met for an event to qualify as 'Force Majeure' for Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Force Majeure" means acts or circumstances that are beyond a party's control, including fire, storm, flood, earthquake, explosion or accident, acts of war or terrorism, rebellion, insurrection, sabotage, epidemic, failures or delays of transportation and strikes, provided that: (a) the non-performing party promptly notifies the other party of the Force Majeure event; (b) the non-performing party is without fault and the delay or failure could not have been prevented by reasonable precautions by the non-performing party; (c) nothing herein shall excuse or permit any delay or failure to pay fees or other amounts owed on the applicable due date; (d) insolvency, lack of required funds or financing, currency fluctuations, currency devaluations, foreign exchange controls or inflation shall never be deemed Force Majeure; and (e) an epidemic or pandemic of a contagious illness or disease, or economic or financial changes caused by an epidemic or pandemic of a contagious illness or disease, shall never be deemed Force Majeure except to the extent a Governmental Authority mandates closure (or prevents the opening) of the Salon as a result of such epidemic or pandemic.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a 'Force Majeure' event is defined as acts or circumstances beyond a party's control, such as fire, storm, flood, earthquake, explosion, accident, acts of war or terrorism, rebellion, insurrection, sabotage, epidemic, failures or delays of transportation, and strikes.
However, to qualify as 'Force Majeure' for Itan, several conditions must be met. First, the non-performing party must promptly notify the other party of the event. Second, the non-performing party must be without fault, and the delay or failure could not have been prevented by reasonable precautions. Importantly, no 'Force Majeure' event excuses delays or failures to pay fees or other amounts owed to Itan on the due date. Additionally, insolvency, lack of funds or financing, currency fluctuations, devaluations, foreign exchange controls, or inflation are never considered 'Force Majeure' events.
Furthermore, an epidemic or pandemic, or economic/financial changes caused by one, are not considered 'Force Majeure' unless a Governmental Authority mandates the closure (or prevents the opening) of the Itan salon as a direct result. If a 'Force Majeure' event occurs that prevents a franchisee from opening a Required Salon on time, the opening date may be extended in accordance with §13.5 for a time reasonable to the nature of the event, but not exceeding 180 days.