How does the Moes Southwest Grill franchise agreement define 'Force Majeure'?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.4 Force Majeure.
A "Force Majeure" is any occurrence, event, or condition beyond your or our reasonable control that is not reasonably foreseeable and cannot be reasonably avoided, which may include an (a) act of God, terrorism, war, insurrection, civil commotion, chemical or nuclear contamination, strike, epidemic, pandemic, or embargo; (b) lack of water, materials, or power specified or reasonably necessary for the operation of your Franchised Business or our business; (c) fire, hurricane, tornado, earthquake, flood, or other unavoidable property casualty; or (d) act or order by a governmental authority (not limited to or caused by the party asserting the Force Majeure) that prevent or materially hinder or delay either party from providing services under this Agreement.
If a Force Majeure occurs, provided that the party promptly provides the other party with written notice of the Force Majeure, the party so affected will be relieved of its respective obligations to the extent that that party is necessarily prevented, or materially hindered or delayed, in performance during the period of the Force Majeure, except a Force Majeure shall not relieve a party of any (i) payment obligations for monies owed, (ii) obligations that existed prior to the start of the period of the Force Majeure, (iii) obligations that start after the period of Force Majeure, or (iv) other obligations that are not necessarily prevented, or materially hindered or delayed during the period of the Force Majeure.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, the franchise agreement includes a section defining "Force Majeure" as occurrences beyond reasonable control that are not foreseeable and cannot be reasonably avoided. These events may include acts of God, terrorism, war, insurrection, civil commotion, chemical or nuclear contamination, strikes, epidemics, pandemics, or embargoes. It also covers situations involving a lack of essential resources like water, materials, or power needed to operate the franchised business.
The definition extends to unavoidable property casualties such as fire, hurricanes, tornadoes, earthquakes, and floods. Furthermore, it includes acts or orders by governmental authorities that prevent or significantly hinder either party from fulfilling their obligations under the agreement, provided the party asserting Force Majeure did not cause or limit the act or order.
If a Force Majeure event occurs, the affected party must promptly notify the other in writing. The party's obligations are then relieved to the extent that performance is necessarily prevented, hindered, or delayed during the event. However, this relief does not extend to payment obligations for monies owed, obligations existing before the Force Majeure, obligations starting after the event, or other obligations not directly affected by the Force Majeure. This clause is a fairly standard inclusion in franchise agreements, designed to protect both the franchisor and franchisee from unforeseen circumstances that could disrupt business operations.