In any agreement, two or more parties can only agree if there is the mutual benefit especially when it comes to business. This ensures that there are no disputes since all the parties involved will benefit equitably as agreed. However most of the times this is not how this normally happens as many agreements are prone to conflicts. This makes it very important to have franchise arbitration.
The interest of those involved may not be the same, and this can be a source of conflict that may result in a huge fight and disputes. The franchisee can destroy the image of the franchisor in such arguments or fight. However, the franchisor has can easily win since they have all the human resources such as finances and good legal representation.
To resolve the conflict like this one, it is necessary for mediation to be conducted between the franchise and the franchisor. In many situations the later usually prefer the situation to be resolved as quickly as possible since they do not want to damage their reputation in the presence of these shareholders. However, these negotiations can have both positive and negative results.
In mediation, the franchise tends to be the one that will benefit from the outcome as compared with the other party. When an organization sees that they are going to lose a case through mediation, they quickly try as much as possible to give room for litigation. When reconciliation is not their favorite, they will allow it to happen.
Litigation is usually by public opinion and can have very detrimental consequences on the organization since they will be required to disclose all their financial documents to the public. They will be under scrutiny that may make investors shy away, and the company may collapse. This may have a very negative consequence despite the outcome.
Even though litigation has a high risk of damaging the reputation of organization, it is inclined to the favor of the company . This is because the franchisor has huge financial and legal support than the other parties. This may cause the other parties to withdraw from a legal battle with the organization due to inadequate funds to cater to a legal team and the entire process.
There are clauses of the law that have leveled the ground for every party to have equal rights to avoid dispute. There are clear guidelines that are stipulated to resolve these conflicts. The parties should first consider mediation before any other form of conflict resolution. Going to courts should follow when all the channels have been exploited and failed. Many franchisors will leave more room for mediation when they are sure they have the upper hand.
When you are pursuing a complaint as a franchise, you should understand your position to avoid huge expenses that may result in the fall of a claim before it even started. You should also have a good lawyer who can represent and negotiate on your behalf when it comes to legal matters that you may not understand.
The interest of those involved may not be the same, and this can be a source of conflict that may result in a huge fight and disputes. The franchisee can destroy the image of the franchisor in such arguments or fight. However, the franchisor has can easily win since they have all the human resources such as finances and good legal representation.
To resolve the conflict like this one, it is necessary for mediation to be conducted between the franchise and the franchisor. In many situations the later usually prefer the situation to be resolved as quickly as possible since they do not want to damage their reputation in the presence of these shareholders. However, these negotiations can have both positive and negative results.
In mediation, the franchise tends to be the one that will benefit from the outcome as compared with the other party. When an organization sees that they are going to lose a case through mediation, they quickly try as much as possible to give room for litigation. When reconciliation is not their favorite, they will allow it to happen.
Litigation is usually by public opinion and can have very detrimental consequences on the organization since they will be required to disclose all their financial documents to the public. They will be under scrutiny that may make investors shy away, and the company may collapse. This may have a very negative consequence despite the outcome.
Even though litigation has a high risk of damaging the reputation of organization, it is inclined to the favor of the company . This is because the franchisor has huge financial and legal support than the other parties. This may cause the other parties to withdraw from a legal battle with the organization due to inadequate funds to cater to a legal team and the entire process.
There are clauses of the law that have leveled the ground for every party to have equal rights to avoid dispute. There are clear guidelines that are stipulated to resolve these conflicts. The parties should first consider mediation before any other form of conflict resolution. Going to courts should follow when all the channels have been exploited and failed. Many franchisors will leave more room for mediation when they are sure they have the upper hand.
When you are pursuing a complaint as a franchise, you should understand your position to avoid huge expenses that may result in the fall of a claim before it even started. You should also have a good lawyer who can represent and negotiate on your behalf when it comes to legal matters that you may not understand.
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