Under the Aw Franchise Agreement, does Aw have the right to proceed by judicial process instead of arbitration to enforce payment obligations?

According to Aw's 2025 Franchise Disclosure Document, Aw retains the right to pursue judicial processes instead of arbitration to enforce a franchisee's payment obligations. Specifically, Aw can enforce the franchisee's obligations to pay under Section 10 of the Franchise Agreement and seek collection of fees owed through judicial process. This means that Aw is not obligated to resolve payment disputes through arbitration and can instead pursue legal action in court to recover any outstanding payments.

This provision offers Aw an alternative avenue for resolving payment disputes, potentially allowing for quicker and more direct enforcement of payment obligations. For a prospective franchisee, this highlights the importance of understanding and meeting all payment obligations outlined in Section 10 of the Franchise Agreement. Failure to do so could result in Aw initiating a lawsuit rather than engaging in arbitration.

It is important to note that while Aw reserves the right to pursue judicial process for payment obligations, the standard dispute resolution process involves mandatory mediation before initiating arbitration or litigation. However, this requirement does not apply to actions pursued under Paragraph 18.3, which includes Aw's right to seek judicial process for payment enforcement. This exception allows Aw to bypass mediation and proceed directly to court in cases involving payment disputes, streamlining the process for recovering owed fees.