10 Steps to Solving Your Franchise Dispute

Disputes can arise within a franchise system for many reasons. A commercial litigation lawyer can help resolve a dispute with your franchisor. So, if you are having issues with your franchisor, what should you do? Follow these steps.

1. Give a Copy of the Written Summary to Your Franchisor

In this summary, you should state clearly what the problem is. Also, tell your franchisor what you expect. The write-up should be short and concise.

2. Arrange a Meeting

Arrange a meeting with your franchisor to see if you both can find a lasting solution to the dispute. Make sure you have the outcome of the meeting in writing.

3. Try to Compromise

In order to resolve the problem, both parties will have to shift grounds depending on the complexity of the issue. If for any reason either party finds it hard to reach a compromise within 21 days, you should enlist the services of a mediator. But first, your franchisor must agree to this decision. A mediator is a third party saddled with the responsibility of resolving issues between disputing parties. This process is known as mediation.

4. Talk to the Franchise Mediation Officer

If your franchisor doesn’t agree to a mediator within the designated timeframe (21 days), you can ask the Franchise Mediation Officer to appoint one for the dispute. The good thing is you don’t have to pay for this service. It is free. The officer provides mediation services to find a resolution to the problem. Also, the officer helps you understand the available options.

5. Attend the Proceedings

You have to be at the mediation proceedings. Failure to attend might attract a penalty. Keep in mind that both parties will share the service cost. The mediator will allow you and the franchisor to reach a conclusion that’s acceptable by you both.

6. Be Prepared

How can you get a favourable outcome at mediation? First, you have to come prepared for the proceedings. Bring all your supporting documents with you. Words are not enough—you need evidence. Back up your claims with proof. If necessary, seek the help of a commercial litigation lawyer.

7. Outline Your Case

At the start of the mediation, you need to clearly outline your case. Provide all supporting documents to back up your statements. Clearly, state your expectations with the franchisor.

8. Follow the Clause of Dispute

Make sure you follow the clause of disputes under your franchise agreement. Generally, mediation is a confidential process; hence, you’re not under any obligation to disclose what transpired during the mediation process.

9. Consider Alternatives

Check to see whether there are other alternatives to resolve the dispute. The most common is cash settlement. However, there are more options to explore. Seek the help of a commercial litigation lawyer who has experience dealing with this kind of issue.

10. Try All Means Available to Resolve the Problems

You may have to compromise on certain things to resolve the issue. The fact is you don’t necessarily have to bear the brunt alone. Your franchisor should as well. Whatever the outcome, put it into writing. This is very important.

Mediation is a great way to settle disputes. It is important to do everything possible to reach a resolution with your franchisor.

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