The Process of Franchise Arbitration

1. The Process of Franchise Arbitration If you are involved in a dispute with your franchisor, there is, undoubtedly, a big possibility that you will need to go through arbitration process to obtain a solution. This is mainly because of the fact that arbitration is the most preferred method of International dispute resolution among franchise owners and franchise agreements usually include the arbitration clauses that say franchisees to go for arbitration instead of taking the dispute for the court trials. Arbitration is an international dispute resolution form that is similar to courtroom litigation version in some sense. Arbitration is a controversial process and a third party or arbitrator issues a binding decision upon the presented facts and evidence. During the process, the parties also engage in finding a suitable resolution and but meanwhile they attend the hearing too at which their hired lawyers present the facts and cross-question the witnesses to help the arbitrator in making an unbiased decision.

2. Arbitration offers quick results than litigation and so, it is less expensive. Why Do Franchisors only Prefer Arbitration? Franchisors usually prefer international arbitration for a couple of reasons. The very first reason for their preference is that they exercise full control within the provision of arbitration, but franchisees have to directly deal with the arbitration process nature. Here are 5 reasons why franchisors generally prefer arbitration process only: Arbitration ignores the franchisees’ right to go for judicial trials. • Franchisors can decide their hometown as the place for arbitration. • As franchisors have more records than franchisees, the limited discovery features benefit franchisor the most in arbitration. • Through arbitration clauses, franchisors prevent franchisees looking for punitive damages. • Through arbitration provisions, franchisors can force the franchisees to pay for the right to state a counterclaim in a dispute initiated by a franchisor. •

3. By considering above reasons, you must be thinking, if you have a dispute with your franchisor in future, is it worth to go for arbitration? This answer should only be replied after careful analysis. Going to arbitration will definitely cost you and to determine whether the International arbitration cost is justified, you will need to think on various factors like: What a favorable result could be for you? • What is your success chance? • How the arbitration filing will influence your relationship with your franchisor? • Does the result matter? • By working on these questions, you will be able to make a well- informed decision. Obviously, in many cases, it is mandatory and many franchisees have successfully enforced the legal and contractual obligation on their franchisor. For More About Our Services: www.franchise-law.com