Advantages Of Franchise Arbitration For Resolving Disputes

By Stephanie Lee


If you happen to be facing any franchiser disputes, you should decide to resolve the issues soon so that you can continue with your daily practices. You can choose to settle the disputes in court or through Franchise Arbitration. The latter is usually preferred by many people because of its simplicity. Also, it is convenient for parties that want disputes to be settled privately. Hence, if you and your franchiser prefer the ADR process, you should look for a qualified arbitrator to guide you. The advantages of this process are many. Keep reading to find out seven reasons for choosing the ADR process.

Franchisers typically prefer mandatory arbitration because they have a right to choose. Also, the process is not complicated, like formal litigation in court. More so, franchisees will not have a jury trial, which is an advantage to franchisers. This is therefore advantageous to franchisers who did not want to go to a court trial in the first place.

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.

This process is typically flexible. This means that the parties can decide and agree on the nature of the proceedings. They are thus given an opportunity to decide how they want the case to be handled. Also, they are the ones that select the arbitrator. The procedural rules of the case are also decided by the parties. The process is, however, similar to formal litigation in many ways.

Usually, court proceedings are captured on camera. Also, the public will know everything that is happening. ADR, on the other hand, offers total privacy for the parties. This kind of confidentiality is essential for business people. When the case remains confidential, the image of the participants will not be tarnished. Therefore, the participants will have the advantage of running their businesses successfully because their reputation will be intact.

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.

When the arbitrator gives a verdict, it becomes the final decision. This is after listening to both participants and gauging their pieces of evidence. Finality is, therefore, another critical advantage of this process. No participant can appeal unless it is in the rules. Thus, to win the case, both parties should come up with enough documents and evidence.

This process is also simple and straightforward. It does not have many rules compared to court proceedings. Therefore, the parties involved will not be subjected to rules that they are not aware of. If you have a dispute that you would like to resolve fast, you should consider this process as it is simpler.




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