Are there any exceptions to the one-year limitation on claims for Aw franchisees?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
ses out of or in connection with this Agreement, whether such claim is in contract, tort or otherwise, except as otherwise explicitly provided herein, under no circumstances shall either party be liable for indirect, exemplary, incidental, consequential, aggravated or punitive damages, including, but not limited to, loss of anticipated income, profits or savings, or loss resulting from business interruption.
- 18.8 Limitation of Claims. Except for claims by us against you concerning the underreporting of Gross Revenue, for non-payment of any fee due under this Agreement, intellectual property infringement/violations, claims for violation of post-termination obligations, including, but not limited to, a breach of the covenant not to compete, and for claims against you by us relating to third party claims or suits brought against us as a result of your operation of the Papa Ray's Pizza Restaurant business, any and all claims arising out of or relating to this Agreement or the relationship between or among the parties hereto shall be barred unless an arbitration or legal proceeding is commenced within one (1) year from the date the claiming party knew or should have known of the facts giving rise to such claims.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, there are specific exceptions to the one-year limitation on claims that a franchisee can bring against Aw. Generally, any claims arising out of or relating to the Franchise Agreement or the relationship between the parties must be brought within one year from when the claiming party knew or should have known of the facts giving rise to the claim. However, this limitation does not apply to certain claims by Aw against the franchisee, including those concerning the underreporting of Gross Revenue, non-payment of fees, intellectual property infringement, violations of post-termination obligations (such as breaches of the covenant not to compete), and claims related to third-party suits brought against Aw as a result of the franchisee's operation.
Additionally, the Franchise Agreement states that the one-year limitation on claims does not apply to any cause of action arising under the Illinois Franchise Disclosure Act. This means that Aw franchisees in Illinois have the right to bring claims under the Illinois Franchise Disclosure Act without being subject to the one-year limitation period. Furthermore, any attempt to bind a franchisee to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois is void.
These exceptions are important for prospective Aw franchisees to understand, as they clarify the circumstances under which the one-year limitation on claims does not apply. Franchisees should be aware of these exceptions and consult with legal counsel to fully understand their rights and obligations under the Franchise Agreement and applicable state laws.