Advantages Of Franchise Arbitration For Resolving Disputes

By Stephanie Lee


In case you are facing disputes with your franchisee or franchiser, the best way to resolve the conflicts is by a conciliation process. Franchise Arbitration is, therefore, the best and easiest way to resolve the disputes you may be having. This form of resolution is also suitable for people that do not want to go through the litigation process. This is, therefore, an alternative dispute resolution process. It is usually thought to be a light form or version of courtroom litigation. There are many advantages that make people prefer this ADR form. The following are some of the advantages that people get from this ADR.

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.

The process usually offers neutrality to both parties. Thus, the franchisee and franchiser can choose the location where the proceedings will take place. Therefore, no one will be favored or discriminated against when selecting the location. Usually, selecting a suitable location needs legal advice. This is because the parties must settle on a common place that will not favor any of them. Also, the implications may be positive or negative towards the case.

This form of ADR is flexible. It allows the parties to agree on how the process will work. Also, they have the right to select an arbitrator or arbitrators if they need more than one mediator. The parties also have the ability to decide on the procedural rules that will apply. This process is almost similar to court proceedings.

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 ADR is usually fast than court proceedings. Therefore, the process can be completed within a short time. The parties may even set a time-line for the case. Since the process does not take much time, the parties will save on costs as well as time. Hence, they can complete the case within the agreed time and continue with their work.

This process also offers finality. Therefore, when the mediators deliver a verdict, the process ends. There will be no appeal, like most cases in court. This also makes the process to run faster. Hence, the parties must ensure that they have gathered all critical information that will work in their favor as early as possible.

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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