Which section of the Aw Agreement outlines the franchisee's payment obligations that Aw can enforce through judicial process?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) We shall have the right to proceed by judicial process in lieu of arbitration to enforce your obligations to pay us under Section 10 of this Agreement and to seek collection of such fees due and owing to us.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Section 10 of the agreement details the franchisee's payment obligations that Aw can enforce through judicial process. Specifically, Item 22, Section 18.3(b) states that Aw has the right to proceed by judicial process instead of arbitration to enforce the franchisee's payment obligations.
This means that Aw can sue a franchisee in court to collect any fees owed under the franchise agreement. This is a significant point for prospective franchisees, as it clarifies Aw's legal options for recovering payments. Franchisees should carefully review Section 10 of the agreement to fully understand their payment obligations and the potential consequences of non-payment.
This approach is fairly standard in franchising, as franchisors typically reserve the right to pursue legal action for unpaid fees to protect their revenue streams and ensure compliance with the franchise agreement. Franchisees should be aware of this clause and factor it into their financial planning and risk assessment.