Disputes with Franchisors

[mediator]

My company has developed a new system for adapting mediation techniques to resolve disputes specific to the franchising industry. We would like to offer complimentary use of the service for a limited number of members who may be in dispute with, or have complaints against, their franchisor.

Resolving disputes outside of the courts is especially sensible in franchising. The benefits for the franchisee, who has invested a significant amount of money and time, in a speedy and low cost resolution is obvious. But the benefits are equally significant for the franchisors. After all, if a franchisee is unhappy and de-motivated, then the franchisor suffers from loss of business no matter how much ‘in the right’ he may feel himself to be.

Unlike with the courts or arbitration, the objective of mediation is to see if it is possible to resolve the dispute in a way that preserves the business relationship so that both sides can focus on making money together.

The techniques we have developed include use of online technology developed exclusively for our company TheMediationRoom.com. In order to help us establish our service in the franchising industry, we would like to offer to five members of this Forum an online mediation of any dispute they are engaged in at absolutely no cost to them. There really is no catch.

For more details please complete the enquiry form at TheMediationRoom.com

Thanks for your time.

[CatherineL]

I may need to take you up on your offer - will check out your website. But, did you know that some franchisors want to make some of their franchisees unhappy and demotivated, in the hope that they'll eventually give up and leave?

[fredS]

Originally Posted by CatherineL

I may need to take you up on your offer - will check out your website. But, did you know that some franchisors want to make some of their franchisees unhappy and demotivated, in the hope that they'll eventually give up and leave?

hi catherine
I've been told (by someone who worked in the franchise industry in a top job) that some franchisors rely on franchisees failing, for the reasons you give and the potential for increased profit this gives. The same person advised me that one third of franchisees failing should draw everyone's attention from Trading Standards to the BFA but try getting anyone to listen!

[Franchise Information]

Catherine,

I would really be interested to hear of any stories/facts etc to show that franchises are doing this. I am currently finishing off research for my book an this could help.

[willie04]

Hi mediator,
I don't doubt your good intention, I am just weary of the imbalance of power in mediation, which has seen it, tipped to favour the strong and take advantage of the weak. Franchise like divorce are emotional charged issues, you have invested time and energy. Because of the informality of the process, hence the absence of procedural and substantive rules. Mediation can magnify power imbalance and open the door to coercion and manipulation by this case the owner of the franchise or he who barks the loudest.
just my 2c

be well
willie

[JezgMBA]

Originally Posted by mediator

Resolving disputes outside of the courts is especially sensible in franchising. The benefits for the franchisee, who has invested a significant amount of money and time, in a speedy and low cost resolution is obvious. But the benefits are equally significant for the franchisors. After all, if a franchisee is unhappy and de-motivated, then the franchisor suffers from loss of business no matter how much ‘in the right’ he may feel himself to be.

This is very interesting. Please have a look at my own thread, "franchise business online - territorial encroachment", does your business have any involvement in cases such as this? If you have any experience of how this can work and any specific situations this has occurred in I would be very grateful to hear from you. Thank you.