Where there is the mutual benefit between different parties when it comes to a business deal, it is unlikely that there would be any disputes. This is because everything is being shared equally among the parties involved. However, in the real sense is in never the case as many deals are usually surrounded by disputes and require quick resolutions. Franchise arbitration is very important as it gives room for all the necessary measures to come up with a solution.
Disputes usually arise when the interest of the parties differ. This can result in a heated argument that may lead to big legal battles. The franchisee can create bring up some issues that may ruin the reputation of this franchising organization. Since the team has all the finances, it usually has advanced when it comes to legal battles.
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.
Most of the time the mediation favor the the other parties more compare to the franchisor. Many organization pushes for litigation if they have a feeling that their position may be weak. However, if they feel like the mediation favors the organization they will call for it.
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.
Litigation is expensive and very tiresome. For this reason, it gives the organization an upper hand since it has all the finances and be best legal team needed for a legal battle. The risks may be big, but they may be nothing compared to the gain they would have if they will make the case or get the lions share in a deal. Many times due to lack of finances many complaints drop their cases.
Some clauses govern the conflict between the parties involved are have a clear guideline in solving these issues. There are clauses that state that disputes between the parties concerned should first be brought into arbitration and mediation first. Sometimes adjudication may be the last recourse of a petitioner. This types of clauses are fair to both parties, unlike the litigation which favors franchisor and not the other parties. It is likely that the franchisor will prefer to make their options open to mediation and arbitration when they feel it will work to their advantage. This flexibility allows the company to have the advantage in most disputes.
You should be well aware of all complains you have as a franchise, you should know your position and understand it so that you do not incur huge expenses. These may close your case before it starts. You should also have good legal team support to will in a case.
Disputes usually arise when the interest of the parties differ. This can result in a heated argument that may lead to big legal battles. The franchisee can create bring up some issues that may ruin the reputation of this franchising organization. Since the team has all the finances, it usually has advanced when it comes to legal battles.
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.
Most of the time the mediation favor the the other parties more compare to the franchisor. Many organization pushes for litigation if they have a feeling that their position may be weak. However, if they feel like the mediation favors the organization they will call for it.
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.
Litigation is expensive and very tiresome. For this reason, it gives the organization an upper hand since it has all the finances and be best legal team needed for a legal battle. The risks may be big, but they may be nothing compared to the gain they would have if they will make the case or get the lions share in a deal. Many times due to lack of finances many complaints drop their cases.
Some clauses govern the conflict between the parties involved are have a clear guideline in solving these issues. There are clauses that state that disputes between the parties concerned should first be brought into arbitration and mediation first. Sometimes adjudication may be the last recourse of a petitioner. This types of clauses are fair to both parties, unlike the litigation which favors franchisor and not the other parties. It is likely that the franchisor will prefer to make their options open to mediation and arbitration when they feel it will work to their advantage. This flexibility allows the company to have the advantage in most disputes.
You should be well aware of all complains you have as a franchise, you should know your position and understand it so that you do not incur huge expenses. These may close your case before it starts. You should also have good legal team support to will in a case.
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