If litigation is necessary, in which forum must disputes with Aw be resolved?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| v. Choice of forum | Section 18.4 | Litigation must be in Illinois; subject to state law. |
| w. Choice of law | Section 18.4 | Law of the state of Illinois applies, except franchise laws only apply if you meet jurisdictional requirements, subject to state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–36)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, any litigation with Aw must take place in Illinois, although this is subject to state law. This information is found in Item 17, which covers dispute resolution.
For a prospective Aw franchisee, this means that if a lawsuit is filed against Aw, or if the franchisee needs to sue Aw, the legal proceedings will occur in Illinois. This could create additional expenses for franchisees who do not reside in Illinois, as they would need to travel to Illinois for court appearances and potentially hire local counsel.
It is important to note the phrase "subject to state law," which suggests there may be exceptions depending on the franchisee's state. Franchisees should seek legal counsel to understand how their local state laws might affect this clause, especially regarding jurisdictional requirements.
This type of forum selection clause is common in franchise agreements, as it allows the franchisor to manage legal disputes in a location convenient for them. However, franchisees should carefully consider the potential costs and inconveniences associated with litigating out-of-state.