What is the deadline for paying arbitration fees and costs after notice and demand in a dispute with 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, if a franchisee fails to pay their share of required arbitration fees and costs, they have ten days after notice and demand to make the payment in full. This is only if there isn't a previously issued court order stating otherwise.
If the franchisee does not make the payment within the ten-day period and lacks good cause for the failure, the arbitrator or the organization administering the arbitration is authorized to enter a final award against the franchisee. This can occur regardless of whether the franchisee appears at the arbitration proceeding or makes the required payment.
This clause emphasizes the importance of fulfilling financial obligations related to arbitration in a timely manner. Franchisees should be aware of this deadline and ensure they have sufficient funds available to cover their share of arbitration costs to avoid potential adverse rulings.