MANDATORY THIRD PARTY MEDIATION
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.
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.
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