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Franchise Mediation

Michigan Franchise Mediation

When a franchisor and franchisee have a serious dispute, about either parties' performance under the franchise agreement, the franchise agreement may require mediation. Franchise mediation is one of the dispute resolution techniques that may end up saving you time and money in comparison to immediately pursuing litigation. 

Some franchise agreements may require the parties to agree on a mediator to help them resolve a dispute. Generally, franchise mediators are experts in the franchise industry and have a wealth of knowledge and experience to help the parties reach a resolution. Franchise mediators do not make any binding decisions for either parties, and any decision is not legally binding unless it is agreed by the parties. The purpose of the mediator is to facilitate discussion between a franchisor and franchisee and reach a mutually-beneficial decision or solution. 

The third-party mediator will weigh arguments without testimony, discovery, or document production. The mediator will give a decision that is non-binding, but it is intended to satisfy the needs of both parties. 

Why Use Franchise Mediation?

Franchise mediation may be required by the franchise agreement, but even if not, it is beneficial because it can be quickly and easily arranged, and there are many easy ways to find and decide upon a third-party mediator. A mediator may be found through Alternative Dispute Resolution (ADR) institutions or found and agreed upon by both sides. Both parties can express their self-interests while accompanied by legal counsel.

Franchise mediation should be done when both the franchisor and franchisee are making a considerable effort in solving the issue. Mediation provides no recourse if one side chooses not to show up for appointments, or in communicating possible solutions for the problem. If both sides are in strong opposition, immediately going forward with arbitration or litigation may be the correct move. Although it will come with costs, arbitration and litigation may have more impact.

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 will provide legal guidance in finding a third-party mediator, or advise you in franchise negotiation, franchise mediation, or franchise arbitration regarding your dispute.


Have any questions regarding the best course of action? Schedule a Franchise Consultation Today ›


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