Top Questions about Franchise Mediation Answered

Mediation is an effective form of alternative dispute resolution that allows parties in dispute to work together as partners. This process may be used in the context of franchise disagreements. Some of the questions that parties who are interested in this process may have include:

What Is Mediation?

Mediation is an informal process designed to help parties to a legal dispute resolve a problem without court intervention. The process uses the services of a neutral problem-solver who is trained in conflict resolution, the mediator. He or she helps guide the parties toward effective communication. While a mediator may make suggestions, he or she has no power to impose any orders on the parties. The parties are free to reach any agreement that they wish to make.

What Types of Disputes Can Franchise Mediation Resolve?

Franchise mediation can resolve nearly any legal dispute that arises within the context of a franchise relationship disagreement. As long as the parties are willing to submit their dispute to mediation, the mediator can help them tackle these issues. Some examples of common issues resolved through mediation include:

  • Impact of franchise
  • Encroachment issues
  • Concerns regarding lack of training or opportunity
  • Customer service concerns
  • Alleged under-reporting or other allegations of financial misconduct
  • Franchisee development rights
  • Renewal of franchise agreements
  • Modification of franchise agreements
  • Termination of franchise agreements

What Can I Get Out of Mediation?

Parties involved in mediation may underestimate the value of this process until they successfully resolve their dispute. Mediation provides ample benefits to parties. They learn to work together as a team and remain in control of decisions about their business and livelihood. They get to avoid expensive litigation that will likely sour any relationship. They also have the opportunity to craft customized solutions to their problems.