Where is the venue for arbitration regarding disputes with Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
18.2 Arbitration. Except to the extent we elect to proceed by judicial process as provided in Paragraph 18.3 below, any controversy, dispute, claim or question arising out of, in connection with, or in relation to this Agreement or its interpretation, performance, or any breach thereof, which cannot be settled amicably between the parties shall be determined solely and exclusively by arbitration with venue in Chicago, Illinois and shall be heard by one arbitrator that has specific franchise experience in accordance with the then existing commercial Rules of the American Arbitration Association ("Rules"). The parties hereby agree that arbitration shall be conducted on an individual, not a class-wide basis, and that an arbitration proceeding between us shall not be consolidated with any other arbitration proceeding involving us and any non-party to this Agreement, including other franchisees. Judgment upon any award, which may include an award of damages, may be entered in the courts of Cook County, Illinois, in the court of any jurisdiction in which you are located, or in any other court having jurisdiction thereof.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, any disputes that cannot be resolved amicably will be settled through arbitration. The venue for this arbitration is specified as Chicago, Illinois. The arbitration will be conducted by a single arbitrator with specific franchise experience, following the commercial Rules of the American Arbitration Association. The agreement emphasizes that arbitration will occur on an individual basis, preventing class-wide actions or consolidation with other proceedings involving Aw and non-parties, including other franchisees.
Following the arbitration, judgment upon any award, which may include damages, can be entered in the courts of Cook County, Illinois, the jurisdiction where the franchisee is located, or any other court with the appropriate jurisdiction. This ensures that the arbitration outcome can be legally enforced in a relevant court.
However, an addendum for franchisees in Illinois modifies these terms. While the franchise agreement may generally provide for arbitration outside of Illinois, claims arising under the Illinois Franchise Disclosure Act of 1987 must be brought in a court within Illinois that has the appropriate subject matter and personal jurisdiction. This ensures that franchisees in Illinois have the option to resolve disputes related to the Illinois Franchise Disclosure Act within the state's legal system.