If litigation is necessary, in which state must the litigation occur for an Aw franchise dispute?
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. |
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 regarding a franchise dispute must occur in Illinois, although this is subject to state law. This is specified under the "Choice of forum" provision in Section 18.4 of the franchise agreement.
This means that if a franchisee has a legal dispute with Aw, they will likely need to pursue the matter in the state of Illinois, regardless of where their franchise is located. This could involve additional travel expenses and the need to hire legal counsel familiar with Illinois law. Franchisees should consider this when evaluating the potential costs and risks associated with investing in an Aw franchise.
It is important to note that the choice of forum is subject to state law, which means that in some cases, a franchisee may be able to pursue litigation in their home state. However, this would likely require demonstrating that the Illinois forum selection clause is unenforceable under the applicable state law. Prospective franchisees should consult with an attorney to understand their rights and options in the event of a dispute with Aw.