Legal Advice on Resolving Franchise Disputes

Are you in franchise business and suffering from strained franchisee-franchisor relationships? If yes, then the post below would help you in settling the franchise disputes-

In a franchise concept, there is a franchisor and a franchisee. Franchisee markets the franchisor's products by following the methods of franchisor and the franchisor provides rights and ongoing support to the franchisees.

For a successful business, it is important to have cordial relations between the partners as well as the customers. Similarly, in case of franchising cohesive and cordial relations between the partners paramount to assistance in success.

Today we'll read the general claims of both the parties and how should they deal with these disputes:

Franchisee Claims

• Lack of franchisee support from franchisors.
• When franchise is no more profitable.
• When the franchisor provided wrong information just to encourage the franchisee to sign the franchise agreement at the initial stage of buying a franchise.

Franchisor Claims

• Franchisors may sue franchisee who do not abide by system standards.
• Franchisors might sue a current or terminated franchisee to collect the money owed.
• A franchisor might also sue to enforce its intellectual property rights.

How to Resolve a Franchise Dispute the Best Possible Way?

Through mutual negotiation

Decide and find the best way to settle the disputes mutually before taking any legal action.

Through meditation- the first “formal” step

This step requires the involvement of a third party who tries and helps the parties towards a resolution.

Through arbitration

In arbitration, the parties opt for a private dispute resolution procedure instead of going to court. Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute.

Hopefully the post provides guidance and help to the franchisees and franchisors in settling down their franchise disputes.

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