Where in the Aw Franchise Agreement can I find information about dispute resolution?

According to Aw's 2025 Franchise Disclosure Document, details regarding dispute resolution can be found in Section 18 of the Franchise Agreement, which is located on page 36.

The Aw Franchise Agreement stipulates a mandatory mediation process that both parties must undertake in good faith before initiating arbitration or litigation. This involves attempting to resolve controversies through a mutually acceptable mediator or an established mediation service selected by Aw. Both parties are required to sign a confidentiality agreement. Arbitration or litigation can only commence after 30 days from the selection of the mediator, mutual agreement that mediation was unsuccessful, or if the notified party does not respond within 30 days of the mediation request. The costs associated with the mediator are to be shared equally between the parties.

If mediation fails, the Aw agreement specifies that disputes will be resolved through arbitration in Chicago, Illinois, using a single arbitrator with franchise experience, following the American Arbitration Association rules. Arbitration is to be conducted on an individual basis, not as a class action, and cannot be consolidated with other proceedings involving Aw and non-parties. However, Aw retains the right to seek injunctions or specific performance orders in court to enforce the franchisee's use of trademarks, non-disclosure, and non-competition obligations, or to address actions that violate laws or harm the brand's goodwill.

These dispute resolution procedures are typical in franchise agreements, aiming to provide structured and cost-effective methods for resolving conflicts. However, prospective Aw franchisees should carefully review these sections with legal counsel to fully understand their rights and obligations, especially regarding mediation, arbitration, and the franchisor's ability to seek injunctive relief.