What is the time limit for commencing an arbitration or legal proceeding for claims related to the Aw franchise agreement?

According to Aw's 2025 Franchise Disclosure Document, there is generally a one-year time limit to commence arbitration or legal proceedings for claims arising out of or relating to the franchise agreement. Specifically, any and all claims arising out of or relating to the Agreement or the relationship between the parties will be barred unless an arbitration or legal proceeding is commenced within one year from the date the claiming party knew or should have known of the facts giving rise to such claims. This means a franchisee must act quickly if they believe they have a claim against Aw.

However, there are exceptions to this one-year limitation. Claims by Aw against the franchisee concerning the underreporting of Gross Revenue, for non-payment of any fee due under the 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 are not subject to this one-year limitation. These types of claims may have longer statutes of limitations under applicable law.

Additionally, this limitation of claims does not apply to any claims under the Illinois Franchise Disclosure Act of 1987. If a franchisee is located in Illinois, they may have additional rights and longer timeframes to bring claims under that specific state law. Franchisees should consult with an attorney to determine the applicable statute of limitations for any potential claims, considering the specific facts and circumstances and the governing state law. Aw franchisees should be aware of these limitations and exceptions to protect their legal rights.