Under what condition would the law of the state in which the Aw Restaurant is located govern the agreement?

According to Aw's 2025 Franchise Disclosure Document, the franchise agreement and relationship are generally governed by the laws of the State of Illinois. However, there is an exception. The law of the state where the Papa Ray's Pizza Restaurant (an Aw brand) is located will govern the agreement to the extent that the state's law requires it. This means that if a specific state law mandates that franchise agreements within that state must adhere to its local laws, then those laws will supersede Illinois law in that particular instance.

This condition is important for prospective Aw franchisees because it means that the legal framework governing their franchise may vary depending on the state in which they operate. Franchisees need to be aware of the specific laws in their state that may affect the franchise agreement. This could include laws related to franchise termination, renewal, or transfer, as well as general business regulations.

It is advisable for potential Aw franchisees to consult with a legal professional in their state to understand how local laws may impact their franchise agreement. This will help them ensure compliance and protect their interests. The FDD also specifies that matters relating to arbitration shall be governed by the Federal Arbitration Act, and trademark issues are governed by the United States Trademark Act of 1946 (Lanham Act) or other federal law.