Franchise Disputes

If you are having problems with your franchise company, you are not actually alone. Actually, there are a lot of franchise owners who are experiencing problems with their franchise company.

In order for them to actually work on that particular problem, a franchise dispute is needed.

Here are the things that you need to know when it comes to Franchise Disputes.

There are only certain cases wherein you can file for a franchise dispute. Actually, all franchise companies who started after October 1, 1998 is required to provide a mandatory dispute resolution procedure. This will as a matter of fact will serve as a guide in the event that there disputes against the franchise company.

According to the Franchising Code of Conduct or simply known as the Code, the party which files for a dispute (either the franchise company or the franchisee) is required to provide the following in writing:

  • The party who is filing for a dispute must include the nature of the dispute itself.
  • The party who is filing for a dispute should indicate the outcome that he or she wants.
  • The party who is filing for a dispute should also provide possible solutions to the said problems so that the dispute may be settled.

Now, if either of the two parties (the franchise company or the franchisee) failed to have settled on the dispute within three weeks, they can actually refer to what they call Mediation.

You may be wondering what mediation is. From the term itself, mediation means that there will be a meeting for the two parties wherein the facilitator would be the mediator. It is important to take note that the mediator should not take either side – that is why they are called the mediator from the root term “middle”. The main objective of the mediator is to let the two parties discuss about their solutions to the dispute. The solution does not necessarily need to favor either side, instead it may be a solution wherein it will enable the two parties to go on and live with it. Mediation is the best thing that the two parties can do rather than going to the court to just settle their disputes which is by the way very expensive to both parties. The mediator will be responsible in providing commercial solutions to the problems of the two parties.

Usually, 75% of parties that resort to mediation resolve their problems especially those who conducted their mediation in the office of the Mediation Adviser. But in the even that the mediation facilitator has failed to provide a solution to the problem, there is no other way to resolve the case other than to resorting to the start a Court Proceeding.

In case that the nature of the dispute is something that needs to be taken care of as soon possible, mediation is not advisable.


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