Franchise Dispute Resolution

Franchise Dispute Resolution

In every business, problems can arise from time to time between you and your customers, suppliers, partners, employees – even other business owners (franchise). These disputes can be resolved quickly and efficiently by using our franchise dispute resolution services. Sparkleminds has set out a clear process for the resolution of disputes between a franchisor and a franchisee.

To assure successful dispute resolution we:

  • Listen to both the parties (put our self in their positions).
  • Ask for documentary evidence to verify the facts.
  • Understand your legal obligations – research relevant laws and regulations.
  • Negotiate face to face in a calm and professional manner.

Our team of experienced franchise dispute resolution specialists / advisors are an integral part of our franchise team. We advise on all stages of the dispute avoidance and resolution process from pre-contractual disclosure documents, audits of franchisee recruitment materials, and training on precautions to avoid the risks involved, such as minimizing the exposure to misrepresentation and breach of contract claims against the franchisor. We give initial trouble-shooting advice, and ultimately advise on mediation, litigation and arbitration.

Early dispute resolution input is serious. We advise on matters such as dissolution, managing franchisee performance issues, injunctive relief to prevent competition with the network, and strategies to avoid escalation of network-wide franchisee unrest. If disputes do escalate, we have substantial experience of mediation, arbitration and litigation – including enforcing post termination non-compete obligations.

In addition to our significant disputes expertise, we regularly advise clients on disputes arising out of international franchise relationships and roll-out programs. We regularly advice clients on franchise disputes in India. We have significant experience of franchisee class actions and have successfully represented groups to re-negotiate their franchise agreements, obtain damage relief, free themselves from contractual restrictions or buy out the business from the franchise.

The last method of dispute resolution is going to court. In some cases this may be the only way to find a solution although it is the most costly and the process can take years. This method is both franchisees and franchisors should look at as a method of last resort.