Is a court order an exception to the requirement to pay arbitration fees for Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event that any party fails without good cause (i) to appear at any properly noticed arbitration proceeding; or (ii) to make payment in full of its share of the required arbitration fees and costs within ten (10) days after notice and demand, absent a previously issued court order to the contrary, then the arbitrator or the organization/entity administering the arbitration shall be authorized to enter a final award against such party, notwithstanding the failure to appear or to make the required payment.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a previously issued court order is an exception to the requirement to pay arbitration fees. Specifically, if a party fails to pay their share of arbitration fees and costs within ten days after notice and demand, the arbitrator can enter a final award against that party. However, this is only if there isn't a previously issued court order stating otherwise.
This means that if a franchisee has a court order that addresses the payment of arbitration fees, the arbitrator must abide by that order. This could protect a franchisee from penalties or adverse rulings if they are unable to pay arbitration fees due to the court order.
It is important for prospective Aw franchisees to understand the dispute resolution process, including the arbitration requirements and any exceptions. Franchisees should consult with a legal professional to fully understand their rights and obligations regarding arbitration and the potential impact of court orders on these obligations.