When does the one-year period for commencing an arbitration or legal proceeding begin for Aw franchisees?

According to Aw's 2025 Franchise Disclosure Document, franchisees have a limited time to bring claims. Except for claims by Aw against the franchisee concerning the underreporting of Gross Revenue, for non-payment of any fee due under the Franchise Agreement, intellectual property infringement/violations, claims for violation of post-termination obligations (including breach of the covenant not to compete), and for claims against the franchisee by Aw relating to third party claims or suits brought against Aw as a result of the franchisee's operation of the Papa Ray's Pizza Restaurant business, any and all claims arising out of or relating to the Franchise Agreement or the relationship between or among the parties must be brought within one year.

The one-year period begins from the date the claiming party (either Aw or the franchisee) knew or should have known of the facts giving rise to such claims. This means a franchisee cannot wait an unreasonably long time to take action if they believe Aw has violated the agreement.

This limitation of claims is a standard practice in franchising, intended to provide certainty and prevent stale claims. However, franchisees should be aware of this limitation and promptly seek legal advice if they believe they have a claim against Aw to ensure they do not lose their right to pursue it. Franchisees should also keep detailed records and documentation to support any potential claims, as proving when they knew or should have known about the facts giving rise to the claim can be crucial.