factual

Which section of the Aw Franchise Agreement outlines the franchisee's payment obligations that Aw can enforce through judicial process?

Aw Franchise · 2025 FDD

Answer 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 Franchise Agreement outlines the franchisee's payment obligations that Aw can enforce through judicial process. Specifically, Item 22 details that Aw has the right to proceed by judicial process instead of arbitration to enforce the franchisee's obligations to pay them under Section 10 of the agreement and to seek collection of such fees.

This means that Aw can pursue legal action in court to collect any fees or payments that a franchisee owes them, as defined in Section 10 of the Franchise Agreement. This is an exception to the general dispute resolution process, which typically involves mediation and arbitration. By reserving the right to pursue judicial process, Aw retains a potentially faster and more direct route to recover owed payments.

For a prospective Aw franchisee, this highlights the importance of understanding all payment obligations outlined in Section 10 of the Franchise Agreement. Failure to meet these obligations could result in Aw pursuing legal action to recover the amounts owed. Franchisees should carefully review Section 10 with legal counsel to fully understand the scope of their payment responsibilities and the potential consequences of non-payment.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.