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標題: hollister uk How Franchisors Control Disputes [打印本頁]

作者: gwrasnjsoi    時間: 2013-5-30 18:22     標題: hollister uk How Franchisors Control Disputes

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How Franchisors Control Disputes
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Franchising is a golden opportunity for many investors. For those who have the drive,isabel marant, the determination and, most importantly, the capital to get into a lucrative franchise, they can be extremely profitable ventures. Franchising benefits investors and it benefits franchising companies, too. It would seem that in such a mutually beneficial setup that conflict could only rarely occur.
Sadly, that just isn't true. Conflict between franchisee and franchisor is all too common in the world of franchising. It is also sad to contemplate that in the majority of disputes it is the franchisee levying complaints that their franchisor has either violated their agreement or has infringed upon the business of the franchisee. In such instances it would be nice to think that the franchisee could find succor in court to recoup his or her loses.
The reality is,hollister outlet, unfortunately,louboutin pas cher, that in almost all cases, franchisors completely hold the upper hand. This isn't to say that franchisees are always at the mercy of their franchisors,hollister milano, but in most cases the franchisor is simply in a better position to manipulate circumstances in their favor. There are a number of ways of doing this,hollister, that can work for the franchisor at the expense of the franchisee.
Most franchisors will prefer to stay out of court if at all possible. Regardless of whether or not the franchisor feels that it could win in court, a court case will have to be disclosed in the franchisors Franchise Disclosure Document. Even if litigation goes in favor of the franchisor and the franchising company is cleared of wrong doing, having that complaint logged in the FDD is not exactly confidence-inspiring for potential new investors.
So, in order to try to stay out of court, the franchisor may push for mediation or arbitration. Mediation is simply a means of presenting the complain of the franchisee before and unbiased third party. This third party can then advise both sides on how to proceed in an equitable manner. Mediation is not legally or contractually binding in any way,karen millen outlet, but can be used as a means of quick resolution.
Arbitration is similar to mediation in that it is a quick means of conflict resolution that allows an objective third party to decide on the best course of action to resolve the issue. However,hollister online shop, arbitration is more formal and both parties are contractually agreed to abide by the decision reached in arbitration. Both mediation and arbitration are methods of conflict resolution that allow a franchisor to address a franchisee's concern without having to disclose the issue in the FDD.
However, franchisors will generally only push for mediation or arbitration if they feel that the decision is likely to go in their favor. If a franchisor feels that mediation or arbitration would not favor the company,hollister, it may leave the franchisee no option but to pursue litigation. Though litigation will have to be reported in the FDD it is much more likely to go in favor of the franchisor if for no other reason than lawsuits are expensive and many franchisors are unable to match their franchisors in shear legal and financial resources. Thus,hollister, many franchisees end up abandoning their complaints before they ever even get their day in court. In this manner, franchisors are able to dominate disputes arising from their franchisees.
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Submitted : 2010-01-21 14:44:41Word Count : 618Popularity: 20Tags: filtafry, filta fry, filta franchise,hollister, filta, franchise, franchisee, franchise business, restaurant management, restaurant
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