Advantages Of Franchise Arbitration For Resolving Disputes

By Stephanie Lee


In case you are facing disputes with your franchisee or franchiser, the best way to resolve the conflicts is by a conciliation process. Franchise Arbitration is, therefore, the best and easiest way to resolve the disputes you may be having. This form of resolution is also suitable for people that do not want to go through the litigation process. This is, therefore, an alternative dispute resolution process. It is usually thought to be a light form or version of courtroom litigation. There are many advantages that make people prefer this ADR form. The following are some of the advantages that people get from this ADR.

Most franchisers opt for this form of dispute resolution because it is simple, fast, and private. Also, they will not go to court. This means that there will be no jury trial because the proceedings will not take place in court. Hence, this process favors parties that do not like formal litigation.

Since the case will not be settled in court, the parties must choose a suitable location that will be convenient for both of them. Therefore, there is neutrality for the parties. No person will be favored when it comes to selecting the site. Also, business people can have an opportunity to choose their home town. However, legal advice should be sought after during the selection of a location.

The flexibility of the process cannot be overlooked. This is because parties can select procedural nature. More so, they will be the ones to choose how the case will take place. They will also set the rules that will be used during the trial. ADR process is similar to formal litigation, but it is faster, simpler, and more flexible.

Unlike formal court proceedings, this process offers franchisers and franchisees total confidentiality. Therefore, unless the parties take the proceeding to the media, they will remain confidential. This is essential for both parties because they will protect their businesses as well as the brand. Thus, their networks will not be affected as well. Therefore, the parties have a chance to protect their reputation.

The process is usually speedy compared to typical court proceedings. Therefore, it will be both time and cost effective to the parties involved. The parties can get the process over with within a short time and go back to their businesses. Thus, the speed of the process attracts many people.

This process also offers finality. Therefore, when the mediators deliver a verdict, the process ends. There will be no appeal, like most cases in court. This also makes the process to run faster. Hence, the parties must ensure that they have gathered all critical information that will work in their favor as early as possible.

This process is straightforward. It does not involve a lot of clauses or rules that may not have been clear to the participants. Therefore, the laws that apply are the ones that are set by the franchisee and franchiser. This process is, therefore, a better alternative for resolving issues.




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