mediation

franchise mediation in Guelph.

Franchise Agreements: Mediation Clauses

Franchise agreements are the ticket to a fair and healthy relationship between franchisee and franchisor. Without a proper franchise agreement, either party may be treated unfairly if a dispute arises. There are a variety of stipulations that can be included in franchise agreements to ensure disputes are resolved in an efficient and fair manner. Mediation and arbitration are two effective tactics that repeatedly provide amicable solutions. While these clauses often provide substantial benefits over litigation of disputes, there are situations where they may be inappropriate or counterproductive, increasing the complexity, time and cost of diffusing the situation. As a franchisee, it’s up to you to stay informed about the fine print of your contract, which includes understanding the different tactics involves in dispute resolution. To give you a head start, here is what you need to know about mediation.

Including mediation clauses in franchise agreements can provide a wide range of benefits to both parties, and can be very effective during the early stages of disputes to encourage a timely and cost-effective resolution. Particularly, mediation offers the greatest advantages for disputes between franchisors and existing franchisees when there is a mutual interest in preserving the franchise relationship.

With that being said, mediation is most effective when it is voluntary, and agreed to by both parties. In the absence of a mediation clause in franchise agreements, parties may agree to mediate without having to comply with a specific aspect of the franchise agreement. Additionally, a mediation clause can act as an obstacle to a franchisor who would rather proceed immediately to court instead of considering mediation. If you have any other questions, Law Works Guelph specializes in franchise law and can help guide you through the intricacies of your franchise agreements to help achieve a resolution.

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franchise dispute mississauga

3 Steps in Franchise Disputes

Day-to-day business responsibilities can be complex. Ensuring your business operates effectively and turns a profit can be a constant source of stress. The expectations for operation, double if your business is a franchise. Not only must you operate in a manner that meets your own business goals, the business must follow a certain set of criteria set out by the franchisor. The franchisor and franchisee relationship can be mutually beneficial however, there also is a potential for conflict. Franchise dispute can be an unfortunate circumstance, in franchise relationships and if you find yourself facing one there are a few steps to keep in mind:

Notify other party of the dispute

You must issue a formal notice of dispute, to the other part involved, wherein you explain what the dispute is about, what your preferred resolution is, and what other steps you believe the other party should take.

Attempt Resolution

Trying to resolve the matter is the preferred method but if a resolution is not possible either party has the right to request franchise mediation.

Attend Mediation

Both parties, in person, must attend mediation or a selected representative may attend on a party’s behalf. The goal is to resolve the dispute but ensure you are willing and able to attend because if you do not, you can be fined.

If you are facing a franchise dispute in Mississauga and require professional advice, guidance, and service then contact Law Works your expert in franchise litigation, arbitration and insolvencies.