Where there is the mutual benefit between different parties when it comes to a business deal, it is unlikely that there would be any disputes. This is because everything is being shared equally among the parties involved. However, in the real sense is in never the case as many deals are usually surrounded by disputes and require quick resolutions. Franchise arbitration is very important as it gives room for all the necessary measures to come up with a solution.
Disputes usually arise when the interest of the parties differ. This can result in a heated argument that may lead to big legal battles. The franchisee can create bring up some issues that may ruin the reputation of this franchising organization. Since the team has all the finances, it usually has advanced when it comes to legal battles.
To resolve the conflict like this one, it is necessary for mediation to be conducted between the franchise and the franchisor. In many situations the later usually prefer the situation to be resolved as quickly as possible since they do not want to damage their reputation in the presence of these shareholders. However, these negotiations can have both positive and negative results.
Talks will mostly favor the franchise. The respondent will only push for talks when they are very sure they are going to have the advantage. However, when they feel that their position may be weak, they rush for litigation.
Litigation exposes the franchising organization to the public as it is based on public opinion. Their financial record will be disclosed to the public. This can make some investors refrain from investing in these companies. Whichever the outcome, this can have a very negative impact on the organization. On the brighter side, the position of the company can be elevated despite the risks involved.
Even though litigation has a high risk of damaging the reputation of organization, it is inclined to the favor of the company . This is because the franchisor has huge financial and legal support than the other parties. This may cause the other parties to withdraw from a legal battle with the organization due to inadequate funds to cater to a legal team and the entire process.
Some clauses govern the conflict between the parties involved are have a clear guideline in solving these issues. There are clauses that state that disputes between the parties concerned should first be brought into arbitration and mediation first. Sometimes adjudication may be the last recourse of a petitioner. This types of clauses are fair to both parties, unlike the litigation which favors franchisor and not the other parties. It is likely that the franchisor will prefer to make their options open to mediation and arbitration when they feel it will work to their advantage. This flexibility allows the company to have the advantage in most disputes.
When you are the petitioner, you should ensure that you have a clear understanding of a complaint and position to avoid some huge and unnecessary expenses that you may incur when your case is discarded before it starts. Having an excellent legal team working on your case can be very encouraging as they will ensure that you have maximum benefit in any business deal you are making and can advise you accordingly.
Disputes usually arise when the interest of the parties differ. This can result in a heated argument that may lead to big legal battles. The franchisee can create bring up some issues that may ruin the reputation of this franchising organization. Since the team has all the finances, it usually has advanced when it comes to legal battles.
To resolve the conflict like this one, it is necessary for mediation to be conducted between the franchise and the franchisor. In many situations the later usually prefer the situation to be resolved as quickly as possible since they do not want to damage their reputation in the presence of these shareholders. However, these negotiations can have both positive and negative results.
Talks will mostly favor the franchise. The respondent will only push for talks when they are very sure they are going to have the advantage. However, when they feel that their position may be weak, they rush for litigation.
Litigation exposes the franchising organization to the public as it is based on public opinion. Their financial record will be disclosed to the public. This can make some investors refrain from investing in these companies. Whichever the outcome, this can have a very negative impact on the organization. On the brighter side, the position of the company can be elevated despite the risks involved.
Even though litigation has a high risk of damaging the reputation of organization, it is inclined to the favor of the company . This is because the franchisor has huge financial and legal support than the other parties. This may cause the other parties to withdraw from a legal battle with the organization due to inadequate funds to cater to a legal team and the entire process.
Some clauses govern the conflict between the parties involved are have a clear guideline in solving these issues. There are clauses that state that disputes between the parties concerned should first be brought into arbitration and mediation first. Sometimes adjudication may be the last recourse of a petitioner. This types of clauses are fair to both parties, unlike the litigation which favors franchisor and not the other parties. It is likely that the franchisor will prefer to make their options open to mediation and arbitration when they feel it will work to their advantage. This flexibility allows the company to have the advantage in most disputes.
When you are the petitioner, you should ensure that you have a clear understanding of a complaint and position to avoid some huge and unnecessary expenses that you may incur when your case is discarded before it starts. Having an excellent legal team working on your case can be very encouraging as they will ensure that you have maximum benefit in any business deal you are making and can advise you accordingly.
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