Under The Standardx agreement, what events are considered 'Force Majeure'?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Force Majeure" means (a) compliance with the orders, requests or recommendations of any federal, state, or municipal government, unless such order, request or recommendation arises because of Hyatt's or Franchisee's failure to comply with any applicable law, regulation or ordinance; (b) fire, flood, accident, hurricane, or other calamity or act of God; (c) strikes, embargoes, war, civil disturbance, acts of terrorism or similar events; or (d) any other similar event or cause.
Neither Hyatt nor Franchisee will be liable for loss or damage or be in breach of this Agreement, including Franchisee's obligations to develop and open the Hotel under ARTICLE II, if Hyatt's or Franchisee's failure to perform its obligations results from Force Majeure. Any delay resulting from Force Majeure will extend performance accordingly or excuse performance, in whole or in part, as may be reasonable, except that Force Majeure will not excuse payments of amounts owed at the time of the occurrence or payment of Royalty Fees, System Services Charges or other payments due afterward.
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, a 'Force Majeure' event encompasses situations where performance is hindered due to circumstances beyond reasonable control. These events include compliance with governmental orders unless stemming from The Standardx or the franchisee's non-compliance with laws, regulations, or ordinances.
Specifically, Force Majeure events include acts of nature such as fire, flood, accidents, and hurricanes. Additionally, strikes, embargoes, war, civil disturbances, acts of terrorism, and similar events fall under this definition. The agreement also includes a general clause for any other similar event or cause, providing a broad scope for unforeseen circumstances.
Neither The Standardx nor the franchisee will be held liable for failure to perform obligations if it results from a Force Majeure event. Delays caused by such events will extend the performance timeline or excuse performance altogether, except for payments already owed or those due for Royalty Fees, System Services Charges, or other subsequent payments. This means that while The Standardx may be understanding during a Force Majeure event, franchisees are still responsible for their financial obligations to the brand.