The information you submit via our enquiry form is shared only with the franchise business(es) that you have selected.

The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.

By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.

You also agree to receive further newsletter email marketing from What Franchise.

Close

What if things go wrong?

What if things go wrong?

Kate Matthews, partner at Boddy Matthews Solicitors, explains how to resolve disputes on a step-by-step basis

Owning a franchise can be a fruitful business relationship, where success for franchisor and franchisee is interdependent. Clear and effective communication is a key factor for that success.

It’s therefore all the more important to swiftly address concerns arising during the course of this relationship, however big or small, to avoid potentially long lasting adverse damage to the relationship or, at worst, its ultimate early termination.

A well drafted and ethical franchise agreement, as promoted by the British Franchise Association and the European code of ethics for franchising, will contain a clear alternative dispute resolution (ADR) clause. This clause will set out how to resolve disputes on a step-by-step basis.

How to choose? Which ADR step is best? What should I know?

Step 1: Communicate

Lack of communication may often be the root of a problem.

While some disputes cannot be avoided, many can be resolved through clear, open and effective communication.

A cost effective solution may simply be to open a dialogue with your franchisor and together negotiate and work towards a resolution. This is often the first ADR step.

Step 2: Mediate

Mediation is a private, confidential and flexible form of ADR, facilitating the parties in reaching an agreement where possible.

If the parties have agreed to mediate, discussions are carried out on a without prejudice basis.

Therefore, it’s not binding unless the parties, with the help of a neutral third party mediator, reach an agreement, which is then recorded in writing and signed by all parties.

A mediation can include all aspects of the relationship and is not limited to the legal issues.

A facilitative mediation can with agreement become an evaluative mediation if the parties so choose, where the mediator can provide a solution the parties agree to honour.

The franchise relationship can be preserved and it’s cost effective. The bfa operates a mediation scheme.

Step 3: Arbitrate

Arbitration is more formal than mediation and an alternative to litigation.

The parties agree to resolve their disputes through arbitration, not court. While it tends to follow a similar structure to court proceedings, depending on the arbitration rules applicable, it’s a private process that’s confidential and binding.

The parties choose and pay for the process and the arbitrator/s and their expertise. Arbitration is usually less expensive than litigation.

Step 4: Litigate

Litigation/court proceedings is often the last resort.

The parties follow court rules. An independent, impartial judge will make a binding judgement. Court fees apply, but not for the judge or venue.

Top tips

  • Avoid communication breakdown
  • Seek an informal solution
  • Negotiate
  • Check the alternative dispute resolution clause and steps
  • Check the governing law and jurisdiction
  • Seek a solution using alternative dispute resolution

Exciting Franchise Opportunities

Drivalia logo

Start your own Drivalia franchise

Profit Chart
Funding Support Available ? Help is available. Check out our franchising funds guide.

Yes

Find Out More
Expected Revenue After 2 Years

N/A

Request Free Information
Find Out More
Drivalia logo

Request Free Information

Send a free enquiry to Drivalia for further information!

By sharing your email, you're agreeing to our privacy policy, cookie policy and terms & conditions.
Business Partnership logo

Start your own Business Partnership franchise

Profit Chart
Funding Support Available ? Help is available. Check out our franchising funds guide.

Yes

Find Out More
Expected Revenue After 2 Years

N/A

Request Free Information
Find Out More
Business Partnership logo

Request Free Information

Send a free enquiry to Business Partnership for further information!

By sharing your email, you're agreeing to our privacy policy, cookie policy and terms & conditions.
Numi Scan  logo

Start your own Numi Scan franchise

Profit Chart
Funding Support Available ? Help is available. Check out our franchising funds guide.

Yes

Find Out More
Expected Revenue After 2 Years

Return of initial investment and an...

Request Free Information
Find Out More
Numi Scan  logo

Request Free Information

Send a free enquiry to Numi Scan for further information!

By sharing your email, you're agreeing to our privacy policy, cookie policy and terms & conditions.
Crunch Fitness logo

Start your own Crunch Fitness franchise

Profit Chart
Funding Support Available ? Help is available. Check out our franchising funds guide.

Yes

Find Out More
Expected Revenue After 2 Years

£1,782,200

Request Free Information
Find Out More
Crunch Fitness logo

Request Free Information

Send a free enquiry to Crunch Fitness for further information!

By sharing your email, you're agreeing to our privacy policy, cookie policy and terms & conditions.
Betterclean Services Franchising logo

Start your own Betterclean Services Franchising franchise

Profit Chart
Funding Support Available ? Help is available. Check out our franchising funds guide.

Yes

Find Out More
Expected Revenue After 2 Years

Average net profit margin 20%

Request Free Information
Find Out More
Betterclean Services Franchising logo

Request Free Information

Send a free enquiry to Betterclean Services Franchising for further information!

By sharing your email, you're agreeing to our privacy policy, cookie policy and terms & conditions.
View all opportunities