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Handling disputes within your franchise network

by Norton Rose
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All franchise networks have disputes. Successful systems have effective processes to identify and deal with the disputes at an early stage before they escalate.  

Non-legal dispute resolution processes can, in many situations, be very effective. They can be as simple as bringing in an independent person and getting the parties together in a simple setting, such as a coffee lounge or over lunch, to verbalise and work through the dispute.  

The Franchising Code of Conduct provides for dispute resolution mechanisms based on mediation. If disputes escalate to this stage, it is certainly preferable to use mediation rather than the courts. There are, however, other alternative dispute resolution mechanisms available. For example, in some cases where a specific matter only is at issue, an expert determination or arbitration may be better than a full scale mediation.  

See the running and franchise and buying a franchise pages for additional information.   

This article was created by Deacons and appears courtesy of Austrade . 10.07.2007
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