Handling Disputes With Franchisors

First Prize Franchise:

Everyone is different and thinks differently. Therefore, disagreements and disputes are bound to arise some time or the other. So how can you deal with it in the right manner?

The first thing you need to do is ask yourself whether it is just you or if other franchisees have the same problem. Often franchisees blame franchisors when they actually only have themselves to blame. Others find it too convenient to blame their franchisors when things go wrong. Chat to other franchisees and get their input on the matter.

The Franchising Code of Conduct (UFOC) provides an excellent dispute resolution process which is a legal requirement in any franchise agreement. Both you and your franchisor are bound to the UFOC so take note of what it says.

Often, disputes arise because of poor communication or because matters have been allowed to worsen. As a franchisee, your first step is to raise your concern with the franchisor or your field representative so that they understand your position. If the matter is not resolved, put your position in writing and forward it to the franchisor requesting that the matter be intervened and resolved.

According to UFOC, a third party mediator is appointed to facilitate a resolution to a dispute. Both the franchisee and the franchisor pays a half of the cost of the mediation expenses. The mediator cannot dictate an outcome but the vast majority of franchisee/franchisor disputes are settled by this compulsory mediation process.

If you have any concerns or problems, deal with them immediately. Do not only any issues you may have to fester otherwise things will only be worse.

When trying to resolve matters with your franchisor, go in with the view to sorting things out. Do not have a ‘ready to fight’ attitude with you. Remember, you want to sort things out and have a good relationship with your franchisor as you will be in business with them for a long period of time.

Therefore, always seek a resolution and make sure the reasons for your dispute is valid. Sort things out with your franchisor!