At the Franchise Law Source, we recommend that our clients require a two stage mediation process before a franchisee can file a lawsuit or a demand for arbitration against the franchisor.

The first stage is an Internal Mediation Program in which the problem is discussed and hopefully settled with the help of people involved in the franchise system. Sometimes representatives of a Franchisee Council are involved.

The value of mediation is, quite simply, that it can yield quick resolutions without the expense and enmity of litigation - it can speed the process up.

The second stage we recommend is Third Party Mediation before an outside mediator still seeking an early resolution.

Although meant to speed a resolution, when settlement is hard to reach this process gives the franchisor precious time to figure out how to avoid litigation.

Let us design mediation requirements for your franchise system that will encourage resolutions but help you isolate and control franchisee complaints that are intractable. Contact us.

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