Franchise Arbitration - A Fast-Track Way To Sort Franchise Disputes

Franchise Arbitration is a fast method of Franchise Dispute Resolution with disputes often arising in franchise business.

With a number of individuals settling for franchise business instead of putting in their own resources to start a new business, the franchising business is touching new heights of success with each passing year. When you become a franchisee you have to agree to the terms and conditions set in by the franchisor in the franchise agreement. Everything both on franchisees and franchisor side may go on smoothly for a long time. But, franchise allocators or franchisors do make changes in their business with time seeing the market pattern for their business growth and this sometimes may not go well with the franchisee. He might not agree to the franchisor’s new terms and conditions and this is what gives rise to arguments between the two parties. Franchisees and franchisors are often seen arguing with each other. Franchise Arbitration if described rationally is a formal way of system of deciding disputes as against negotiations and conciliations. In Franchise Dispute Resolution, arbitration is a commonly used method of resolving franchise business disputes.


Franchise Arbitration involves an arbitrator selected on mutual grounds by the franchisee and the franchisor to sort out their issues. The arbitrator sits in a private court to announce his ultimate decision.

Franchise Arbitration used in Franchise Dispute Resolution has a number of advantages. Firstly, the most important among them is it is far more reasonable than filing a proper litigation case. You don’t have to shell-out the extra court fees from your pocket that happens in the case of a legal case. Second advantage of this kind of dispute resolution is that the decision ultimately delivered by the arbitrator is binding to both the franchisee and the franchisor. There are no chances of appealing it in the higher court of law. Thirdly, the warring parties in such kind of arbitration cases can choose an arbitrator of their personal choice who they both trust and mutually trust, not possible in legal cases.


And last but not the least, Franchise Arbitration helps to solve Franchise Dispute Resolution in a faster manner, which at times goes on for years.  

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