Alternative Resolution For Franchise Disputes

By Mark Kelly


Franchising business is a way for people who want to start their own business but have no experience in the field. With franchising business you earn a huge portion of the business profit with a ready made guideline in how to keep the business running provided by the owner of the main business. But what happens if it does not work that way you expected it to be. This is when franchise arbitration helps you with all these legal disputes.

Arbitration in franchise business is alternative resolution instead of filing a lawsuit that is both money and time consuming. You along with the franchisor could simply agree upon it and settle the dispute with arbitration. With that a panel of arbitrators will settle all the legal terms and dispute.

Why do most people prefer to agree in arbitration rather than litigation? One of the most basic reasons is that arbitration is less expensive in comparison to a lawsuit. Sure it will cost both of the parties because they are seeking the assistance of arbitrator to settle legal disputes. However unlike a lawsuit which will cost a sum amount of money, and could also take time. Arbitration is an easier and less costly way in settling disputes.

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.

Now in cases that one would really pursue litigation, then there is no stopping a long tiresome flow of court hearings with no sure possibility that you will be able to gain from it. And if the court takes favor at the other party, then what will that leave you? It will leave you with a thought that you have wasted a great amount of money.

Not all franchise business ends up in arbitration, because not all franchisee and franchisor end in disagreement or dispute. As an individual seeking for greener pasture, you must be wise enough in choosing a good business to franchise. A business that you understand, something that you are confident in managing.

In a daily basis most people would always prefer the options, which saves them the most time. Because what is the point of going at it for a long time without proper resolution, you would only be wasting money, and time, that could be useful in rectifying false outlooks and failed plans.




About the Author:



Aucun commentaire:

Enregistrer un commentaire