What law governs matters relating to arbitration under the Aw Franchise Agreement?

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. However, the agreement and franchise are governed by the laws of Illinois, 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, or if the Papa Ray's Pizza Restaurant is located in a state that requires its laws to govern.

This means that any arbitration proceedings between Aw and a franchisee will be subject to the rules and regulations outlined in the Federal Arbitration Act. This Act provides a framework for how arbitration should be conducted, including aspects like the selection of arbitrators, the presentation of evidence, and the enforcement of arbitration awards. Franchisees should familiarize themselves with the key provisions of the Federal Arbitration Act to understand their rights and obligations in the arbitration process.

However, it's important to note that the laws of Illinois generally govern the franchise agreement itself, unless other federal laws like trademark law apply or the franchisee's restaurant is located in a different state with its own governing laws. This multi-layered approach to governing law means that franchisees may need to consider both federal and state laws when interpreting and enforcing their franchise agreement with Aw. Franchisees should seek legal counsel to fully understand the implications of these governing law provisions.