How should I handle a dispute with my franchisor?
Answered by Rod Young from DC Strategy
The first step is to look in the mirror and have a reality check. Ask the question, “Is it just me or do many of the franchisees have similar issues?”
A fully independent business person has only himself to blame, but in a franchise relationship the franchisor or their staff are often a convenient crutch to shore up a disgruntled franchisees ego.
The Franchising Code of Conduct, to which every franchisee and franchisor is bound, has an excellent dispute resolution process that is a legal requirement in any franchise agreement.
Disputes often arise out of poor communication and/or letting the matter fester. The first step is to raise your concern with the franchisor or your field representative so they understand your position. If the matter is not resolved, put your position in writing and forward it to the franchisor requesting that the matter be mediated.
Under the Franchising Code of Conduct a third party mediator is appointed to facilitate a resolution to the dispute.
Each party pays half of the cost of the mediation expenses. The mediator cannot dictate an outcome but the vast majority of franchisee/franchisor disputes are settled by this mandatory mediation process.
A fully independent business person has only himself to blame, but in a franchise relationship the franchisor or their staff are often a convenient crutch to shore up a disgruntled franchisees ego.
The Franchising Code of Conduct, to which every franchisee and franchisor is bound, has an excellent dispute resolution process that is a legal requirement in any franchise agreement.
Disputes often arise out of poor communication and/or letting the matter fester. The first step is to raise your concern with the franchisor or your field representative so they understand your position. If the matter is not resolved, put your position in writing and forward it to the franchisor requesting that the matter be mediated.
Under the Franchising Code of Conduct a third party mediator is appointed to facilitate a resolution to the dispute.
Each party pays half of the cost of the mediation expenses. The mediator cannot dictate an outcome but the vast majority of franchisee/franchisor disputes are settled by this mandatory mediation process.
About Rod Young
Rod Young is an Executive Director at DC Strategy. DC Strategy is widely recognised as the region’s leading Strategy, Franchising and International consulting group. DCS has developed the networks and brands of many of the region’s most successful businesses.
You should always check independently that an ask an expert answer published on Franchise Business applies to your particular circumstances
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