Alternative Resolution For Franchise Disputes

By Mark Kelly


Most people these days know the fact, that if you are aiming for a wealthy lifestyle, a good office job that pays well will never be enough. Which is the main reason why most people who have the enough saving in their accounts. Would make their own business from scratch, buy existing business or invest in franchising an existing business. But what if things do not go as planned and you are no longer in good terms with the owner of the main business, this is where franchise arbitration becomes very handy.

When cases like this occur the first thing that would come to mind is ask for a professional and legal advice. And in most cases, the advice would be to file a lawsuit which will cost you more money. This method provides you that option to settle all the legal disputes without the need for litigation.

The question is what is Arbitration in relevant to a franchise business? And how can it help in resolving the dispute? This method is an alternative resolution from a lawsuit. It includes hiring a panel of arbitrators to consider all the legal terms and come up with the best possible way to end the dispute.

That is why in most cases, when an interested franchisee wants to franchise a franchisors business. The franchisor will provide a contract, and along with it is an agreement that if any disputes arise in the future, both parties will seek this alternative.

If you go through with litigation, aside from spending too much money on that process, you are also heavily burden by the possibility that you may or may not win the filed lawsuit. However, in arbitration the panel composed of the 3 arbitrators will think of a way to end the dispute the best way possible, finding terms you and the other party could agree on.

What would go through ones mind is that, since the agreement was provided by the franchisor, then it must be because they would benefit from it the most. But that is a big misconception, in fact most franchisee would agree to these terms.

Because of the fact that in cases where there is a big dispute with the franchisee and the franchisor, the arbitrators will be the guide to assess the situation to come up with a decision that would be favorable for both parties.

But with arbitration, once the panel of arbitrator will have a common resolution, which you and the other party could agree upon. The dispute is over and with some resources left to stand back up and rebuild a new business that has been better thought of with the foundation of lessons that you have learned.

Your business will not be so easily shaken. And you will be able to control your business base on your experience in franchising a business.




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