In any agreement, two or more parties can only agree if there is the mutual benefit especially when it comes to business. This ensures that there are no disputes since all the parties involved will benefit equitably as agreed. However most of the times this is not how this normally happens as many agreements are prone to conflicts. This makes it very important to have franchise arbitration.
When the interest of the parties involved may collide, and things can get heated up very quickly. An unsatisfied individual can ruin the franchising appeal of the organization.However, the organization usually has the upper hand regarding legal resources.
The disputes should be resolved as quickly as possible so that everybody can go back to their normal businesses. When the disputes are resolved quickly, it serves as an advantage to the organization because they want to look good in the eyes of the investors. However, they may not like the result of the negotiations as they may be either positive or negative.
In mediation, the franchise tends to be the one that will benefit from the outcome as compared with the other party. When an organization sees that they are going to lose a case through mediation, they quickly try as much as possible to give room for litigation. When reconciliation is not their favorite, they will allow it to happen.
Litigation in this type of business can be very dangerous to the company because it is by being more public. This means that the company will disclose all their financial documents to the public and may make investors develop a negative opinion about the company. This may be a big blow to the organization regardless of outcome. Sometimes the risk may be worth it as it may advance the position of a franchisor.
Most of the time the organization has the upper hand when it comes to litigation regardless of the high risk of damage. This is because they have good legal team and finances to cater for all the legal preceding and actions. This makes some franchisee to be no match due to insufficient funds. Many end up dropping the case together with their claim.
These are rules that give the guideline of conflict resolution between the parties involved. The conflicting parties should always come to the table of mediation first before going or taking extreme measures. It says that arbitration should be the last resort that the complainant is supposed to take. This clause puts are fair ground for both parties to work out their issues, unlike litigation which gives the franchisor advantage. The franchisor usually leaves some room for more option especially to mediation and adjudication when they know it will work in their favor. This openness gives the organization a clear advantage over the petitioner.
You should be well aware of all complains you have as a franchise, you should know your position and understand it so that you do not incur huge expenses. These may close your case before it starts. You should also have good legal team support to will in a case.
When the interest of the parties involved may collide, and things can get heated up very quickly. An unsatisfied individual can ruin the franchising appeal of the organization.However, the organization usually has the upper hand regarding legal resources.
The disputes should be resolved as quickly as possible so that everybody can go back to their normal businesses. When the disputes are resolved quickly, it serves as an advantage to the organization because they want to look good in the eyes of the investors. However, they may not like the result of the negotiations as they may be either positive or negative.
In mediation, the franchise tends to be the one that will benefit from the outcome as compared with the other party. When an organization sees that they are going to lose a case through mediation, they quickly try as much as possible to give room for litigation. When reconciliation is not their favorite, they will allow it to happen.
Litigation in this type of business can be very dangerous to the company because it is by being more public. This means that the company will disclose all their financial documents to the public and may make investors develop a negative opinion about the company. This may be a big blow to the organization regardless of outcome. Sometimes the risk may be worth it as it may advance the position of a franchisor.
Most of the time the organization has the upper hand when it comes to litigation regardless of the high risk of damage. This is because they have good legal team and finances to cater for all the legal preceding and actions. This makes some franchisee to be no match due to insufficient funds. Many end up dropping the case together with their claim.
These are rules that give the guideline of conflict resolution between the parties involved. The conflicting parties should always come to the table of mediation first before going or taking extreme measures. It says that arbitration should be the last resort that the complainant is supposed to take. This clause puts are fair ground for both parties to work out their issues, unlike litigation which gives the franchisor advantage. The franchisor usually leaves some room for more option especially to mediation and adjudication when they know it will work in their favor. This openness gives the organization a clear advantage over the petitioner.
You should be well aware of all complains you have as a franchise, you should know your position and understand it so that you do not incur huge expenses. These may close your case before it starts. You should also have good legal team support to will in a case.
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