What experience should the arbitrator have when arbitrating a dispute with Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
18.2 Arbitration. Except to the extent we elect to proceed by judicial process as provided in Paragraph 18.3 below, any controversy, dispute, claim or question arising out of, in connection with, or in relation to this Agreement or its interpretation, performance, or any breach thereof, which cannot be settled amicably between the parties shall be determined solely and exclusively by arbitration with venue in Chicago, Illinois and shall be heard by one arbitrator that has specific franchise experience in accordance with the then existing commercial Rules of the American Arbitration Association ("Rules"). The parties hereby agree that arbitration shall be conducted on an individual, not a class-wide basis, and that an arbitration proceeding between us shall not be consolidated with any other arbitration proceeding involving us and any non-party to this Agreement, including other franchisees. Judgment upon any award, which may include an award of damages, may be entered in the courts of Cook County, Illinois, in the court of any jurisdiction in which you are located, or in any other court having jurisdiction thereof.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, any controversy or dispute that cannot be settled amicably will be determined by arbitration in Chicago, Illinois. The arbitration will be heard by one arbitrator who has specific franchise experience. The rules of the American Arbitration Association will be followed.
This means that if a dispute arises between an Aw franchisee and the company that cannot be resolved through mediation, it will be settled through arbitration. The arbitrator selected to oversee the arbitration must have prior experience in the franchise industry. This requirement ensures that the arbitrator has a solid understanding of the unique legal and business issues that often arise in franchise relationships.
The arbitration will take place in Chicago, Illinois, regardless of where the franchisee's business is located. The document specifies that arbitration will be conducted on an individual basis and not as part of a class action. The judgment upon any award may be entered in the courts of Cook County, Illinois, or in the court of any jurisdiction in which the franchisee is located.