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Franchise Dispute Resolution

Franchise Dispute Resolution

Facing a Dispute as a Franchisor or Franchisee?

You may have more options than you think.

Any franchisor or franchisee that enters into an agreement is subject to benefits and risks. The party you enter into an agreement with may not always follow up on their contractual obligations. If your franchisee or franchisor does not follow up on contractual obligations, such as a franchisee not paying the agreed upon fees, or a franchisor terminating a franchise agreement early, you may think litigation is the only option.

Although the franchise attorneys at Fahey Schultz Burzych Rhodes are well versed and experienced in litigation, you may be limited by contract to first seek alternative dispute resolution processes. These processes include mediation or arbitration, both of which are meant to resolve disputes without waiting for the court process.

Our attorneys can help you identify and navigate the most efficient and fitting route of dispute resolution for your franchised business.

Looking to resolve your franchise dispute? Schedule a consultation with a franchise attorney.


Dispute Resolution Options for Franchisors

Franchise Mediation

Circumstances

  • Identification of potential dispute negotiation
  • Identification of potential common ground without escalation
  • No involvement of third parties...the parties just talk!
  • A mediator (neutral third party) facilitates dialogue to help both parties reach a mutually-satisfactory agreement
  • Mediator weighs arguments without testimonies or document production
  • The process is voluntary, and hopefully results in a satisfactory business resolution for both parties
  • Usually a decision-maker from both sides is present

Benefits

  • Simple, cost efficient
  • For business-minded parties, quick resolution to dispute
  • Informal process to air a business dispute
  • Mediation is easily arranged
  • Individuals can express their own self-interests and have more say in working out a solution
  • For parties trying to reach a business solution, a fast resolution to disagreements

Franchise Arbitration

Circumstances

  • An arbitrator (neutral third party) rules on a case, where both parties are usually accompanied by an attorney or advocate
  • The arbitrator makes a ruling after hearing testimony and reviewing relevant documents
  • Limited discovery
  • Arbitration can be binding on parties

Benefits

  • Arbitration is less formal in comparison to trial court
  • Either a binding or non-binding decision is reached
  • Decisions may be open to appeals in a trial court
  • Arbitrator is knowledgeable in franchise industry
  • Probably more expedited time frame to decision

Franchise Litigation

Circumstances

  • In some situations, litigation may be the only resolution
  • One party sues the other in state or federal court
  • Typically used in situations where one party is seeking injunctive relief

Benefits

  • Certain decision
  • Enforcement of court order
  • Injunctive relief can be granted


Where to Start With Franchise Dispute Resolution

Not sure where to start? The franchise attorneys at Fahey Schultz Burzych Rhodes can review your case and provide legal guidance whether you are seeking representation in litigation, negotiation, mediation or arbitration regarding your franchise dispute.

If you have any questions regarding the best course of action, please request a franchise consultation with one of our attorneys. 

What Our Franchise Clients Are Saying

"Trustworthy, experienced, protective, and insightful are words I would use to describe Mr. Burzych and his law practice. Mr. Burzych was instrumental in helping us at BD's Mongolian Grill to develop and grow our franchise business. I highly recommend Mr. Burzych for all franchise and general business-related matters."

- Billy Downs
BD's Mongolian Grill & Mongo Consulting, L.L.C.

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