What law governs matters relating to arbitration for Aw?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
18.4 Governing Law/Consent to Jurisdiction. All matters relating to arbitration shall be governed by the Federal Arbitration Act (9 U.S.C. Section 1 et. seq.). Except to the extent governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et. seq.) or other federal law, this Agreement and franchise shall be governed by the laws of the State
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the Federal Arbitration Act (9 U.S.C. Section 1 et. seq.) governs all matters relating to arbitration. This means that any arbitration proceedings between Aw and a franchisee will be conducted according to the rules and regulations established by this federal law.
This is a fairly standard practice in franchising, as the Federal Arbitration Act is often used to govern arbitration proceedings to ensure consistency and enforceability. However, the agreement and franchise itself, outside of arbitration matters, are governed by the laws of Illinois, except if the laws of the state where the Papa Ray's Pizza Restaurant is located require otherwise.
It is important for a prospective Aw franchisee to understand the implications of the Federal Arbitration Act, as it dictates the process and procedures for resolving disputes through arbitration rather than litigation. Franchisees should familiarize themselves with the Act and consult with legal counsel to fully understand their rights and obligations in the event of a dispute with Aw.