What is the time limit for initiating an arbitration or legal proceeding for claims related to the Aw franchise agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 is a one-year time limit for initiating arbitration or legal proceedings for claims arising out of or relating to the franchise agreement. This limitation begins from the date the claiming party knew or should have known of the facts giving rise to such claims. However, there are exceptions to this limitation.
Specifically, the one-year limitation does not apply to claims by Aw against the franchisee concerning the underreporting of Gross Revenue, 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 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.
It's important to note that these limitations and exceptions are subject to the laws of the state in which the Papa Ray's Pizza Restaurant is located, potentially modifying the terms of the agreement. Additionally, the Illinois Franchise Disclosure Act provides further protections and may supersede some of these limitations for franchisees operating in Illinois.