How many arbitrators will hear a dispute regarding Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
18.2 Arbitration. Except to the extent we elect to proceed by judicial process as provided in Paragraph 18.3 below, any controversy, dispute, claim or question arising out of, in connection with, or in relation to this Agreement or its interpretation, performance, or any breach thereof, which cannot be settled amicably between the parties shall be determined solely and exclusively by arbitration with venue in Chicago, Illinois and shall be heard by one arbitrator that has specific franchise experience in accordance with the then existing commercial Rules of the American Arbitration Association ("Rules"). The parties hereby agree that arbitration shall be conducted on an individual, not a class-wide basis, and that an arbitration proceeding between us shall not be consolidated with any other arbitration proceeding involving us and any non-party to this Agreement, including other franchisees. Judgment upon any award, which may include an award of damages, may be entered in the courts of Cook County, Illinois, in the court of any jurisdiction in which you are located, or in any other court having jurisdiction thereof.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, any dispute that cannot be resolved amicably will be settled by arbitration in Chicago, Illinois. The arbitration will be heard by one arbitrator with specific franchise experience, following the commercial Rules of the American Arbitration Association.
This means that if a franchisee has a disagreement with Aw that escalates to arbitration, only a single arbitrator will preside over the proceedings. This arbitrator must have experience in the franchise industry, suggesting they will possess relevant knowledge to understand the complexities of the franchise relationship. The arbitration process will adhere to the established rules of the American Arbitration Association, providing a structured framework for resolving the dispute.
The agreement specifies that arbitration will occur on an individual basis, preventing class-action lawsuits. This clause ensures that each franchisee's dispute is considered separately. The judgment upon any award may be entered in the courts of Cook County, Illinois, where Aw is located, or in the franchisee's jurisdiction, or any other court having jurisdiction.
It is important for prospective Aw franchisees to understand this arbitration clause, as it dictates the process for resolving potential disputes with the franchisor. Franchisees should consider the implications of having a single arbitrator, the location of arbitration, and the waiver of class-action lawsuits when evaluating the franchise agreement.