The relationship between a franchisee and a franchisor is inherently unstable because although the franchisor isn’t the boss and the franchisee isn’t the employee, it can sometimes feel that way. The perception is that the franchisor calls the shots and the...

To the uninitiated, franchise agreements may appear to be heavily weighted in favour of the franchisor. They contain a large number of clearly defined actions that the franchisee must carry out while running the business. There are restrictions on exactly where...

Mediation is by far the most effective and least costly method of resolving a franchise dispute but, not surprisingly, success is dependent on appointing the right mediator. In a mediation, the mediator is neutral and non-judgemental. He or she works with each...

The ability to be in control is central to the concept of franchising. Franchisees are independently minded individuals who wish to have a greater level of control over their working lives than they would have as an employee. Franchisors regard the ability to...

The short answer is; sooner rather than later. The reason for this is that generally, the longer a dispute remains unresolved, the more the parties become entrenched and determined to defend their positions. It is not long before solicitors are consulted, and legal...

If a franchisee cannot settle a dispute with his or her franchisor by dialogue and negotiation, the first thing that they should do is to refer to the franchise agreement and see if there is a ‘dispute resolution’ clause. Most franchise agreements contain one. This...

Franchise agreements almost universally contain a clause that calls for disputes to be resolved by negotiation, failing which the parties will mediate. Only if that also fails should litigation be commenced. This is entirely sensible because mediation is far less...

Let’s start by accepting that not all franchisors act ethically and not all franchisees follow the franchise model and work hard to support and grow the brand. But this blog isn’t about bad franchises, it is about those that are successful for both the franchisor...

Almost universally, franchise agreements contain a ‘dispute resolution’ clause. This will usually set out a three-stage process; starting with a face-to-face meeting between the franchisee and the franchisor. If that fails, the second stage is mediation and if that...

Introduction This essay will address the question in three stages. Firstly, by identifying the pros and cons of imposing mandatory mediation. Secondly, by analysing the effectiveness of mediation in jurisdictions where it has been made mandatory. Finally, by...