Monday, July 1, 2019

Reasons People Prefer Franchise Arbitration Over Litigation

By Stephanie Lee

In case you are facing disputes with your franchisee or franchiser, the best way to resolve the conflicts is by a conciliation process. Franchise Arbitration is, therefore, the best and easiest way to resolve the disputes you may be having. This form of resolution is also suitable for people that do not want to go through the litigation process. This is, therefore, an alternative dispute resolution process. It is usually thought to be a light form or version of courtroom litigation. There are many advantages that make people prefer this ADR form. The following are some of the advantages that people get from this ADR.

Franchisers typically prefer mandatory arbitration because they have a right to choose. Also, the process is not complicated, like formal litigation in court. More so, franchisees will not have a jury trial, which is an advantage to franchisers. This is therefore advantageous to franchisers who did not want to go to a court trial in the first place.

The process usually offers neutrality to both parties. Thus, the franchisee and franchiser can choose the location where the proceedings will take place. Therefore, no one will be favored or discriminated against when selecting the location. Usually, selecting a suitable location needs legal advice. This is because the parties must settle on a common place that will not favor any of them. Also, the implications may be positive or negative towards the case.

This process is typically flexible. This means that the parties can decide and agree on the nature of the proceedings. They are thus given an opportunity to decide how they want the case to be handled. Also, they are the ones that select the arbitrator. The procedural rules of the case are also decided by the parties. The process is, however, similar to formal litigation in many ways.

This process offers both parties confidentiality. Thus, unlike court proceedings, the procedure is confidential. This is essential because the reputation of the brand can be protected. Therefore, the franchiser will retain his/her business integrity. Also, the parties can exchange vital information that will remain confidential. Thus, whatever happens will not get to the media. This is one of the reasons people opt for this procedure.

The speedy nature of the process also attracts business people who are facing disputes. The participants can come up with a deadline of the case. Therefore, the arbitrator must ensure that the deadline has been met. When the case becomes handled quickly, it gives the participants time to continue with their operations.

This process also offers finality. Therefore, when the mediators deliver a verdict, the process ends. There will be no appeal, like most cases in court. This also makes the process to run faster. Hence, the parties must ensure that they have gathered all critical information that will work in their favor as early as possible.

This process is also simple and straightforward. It does not have many rules compared to court proceedings. Therefore, the parties involved will not be subjected to rules that they are not aware of. If you have a dispute that you would like to resolve fast, you should consider this process as it is simpler.

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