Does the Aw agreement allow for judicial proceedings to collect fees due?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) We shall have the right to proceed by judicial process in lieu of arbitration to enforce your obligations to pay us under Section 10 of this Agreement and to seek collection of such fees due and owing to us.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw retains the right to pursue judicial processes instead of arbitration to enforce a franchisee's payment obligations as outlined in Section 10 of the franchise agreement. This specifically includes seeking the collection of fees that are due and owing to Aw.
This clause in the Aw franchise agreement allows Aw to bypass the arbitration process and directly pursue legal action in court to recover unpaid fees from franchisees. This can be a faster and more direct route for Aw to recoup owed money compared to arbitration, which involves a more structured and potentially lengthy process.
For a prospective Aw franchisee, this means that Aw can take you to court if you fail to pay the required fees. This could lead to judgments against you, which could negatively impact your credit and business operations. It is important to understand Section 10 of the Aw franchise agreement, which details all the fees a franchisee is obligated to pay, and to ensure timely payments to avoid potential legal action.