Pandemics, Natural Disasters, Unrest: Litigating Force Majeure Clauses in Franchise Agreements[CC]

In these difficult and uncertain times due to the pandemic, franchisees and franchisors are attempting to stem the impact by shuttering doors, engaging in lay-offs, or ceasing or curtailing operations. These actions may impact obligations to franchisors or franchisees as well as creditors, employees, customers and clients. This webinar will explore force majeure clauses as a possible defense to the enforcement of various types of contracts such as leases and franchise agreements and the opposition to such clauses as well as similar common law defenses. The expert panel will analyze litigating force majeure issues, including the scope of different language used in force majeure provisions and whether the language in the force majeure clause includes COVID-19 cases; whether COVID-19 constitutes an unforeseeable or unavoidable occurrence as required for most force majeure clauses; the use of expert testimony in asserting or defending against the force majeure clause; and whether force majeure may be implied even where no provision is contained in the agreement. This panel will also discuss similar common law defenses, such as the doctrines of impossibility of performance, impracticability, or frustration of purpose as potential defenses. This panel is intended for franchise attorneys and other business attorneys who work with franchisee clients or other corporate clients, such as commercial landlords who work with franchisees.