Wednesday 7 August 2019

Reasons People Prefer Franchise Arbitration Over Litigation

By Stephanie Lee


If you happen to be facing any franchiser disputes, you should decide to resolve the issues soon so that you can continue with your daily practices. You can choose to settle the disputes in court or through Franchise Arbitration. The latter is usually preferred by many people because of its simplicity. Also, it is convenient for parties that want disputes to be settled privately. Hence, if you and your franchiser prefer the ADR process, you should look for a qualified arbitrator to guide you. The advantages of this process are many. Keep reading to find out seven reasons for choosing the ADR process.

Most franchisers opt for this form of dispute resolution because it is simple, fast, and private. Also, they will not go to court. This means that there will be no jury trial because the proceedings will not take place in court. Hence, this process favors parties that do not like formal litigation.

When it comes to selecting the location where the process will take place, both parties have the right to choose. This is essential to create neutrality. Hence, no party will be discriminated against or favored. However, choosing the location may have some implications on the process. Therefore, the parties involved should seek legal advice before they select the location. More so, one area has to be chosen ultimately because the case cannot be handled in two places at once.

The flexibility of the process cannot be overlooked. This is because parties can select procedural nature. More so, they will be the ones to choose how the case will take place. They will also set the rules that will be used during the trial. ADR process is similar to formal litigation, but it is faster, simpler, and more flexible.

Unlike formal court proceedings, this process offers franchisers and franchisees total confidentiality. Therefore, unless the parties take the proceeding to the media, they will remain confidential. This is essential for both parties because they will protect their businesses as well as the brand. Thus, their networks will not be affected as well. Therefore, the parties have a chance to protect their reputation.

The process is usually speedy compared to typical court proceedings. Therefore, it will be both time and cost effective to the parties involved. The parties can get the process over with within a short time and go back to their businesses. Thus, the speed of the process attracts many people.

This process provides the parties with finality. Hence, the final verdict usually marks the end of the process. This means that no party can appeal. This makes this process to be fast and convenient for most people. Therefore, if you want the case to work in your favor, you should prepare yourself adequately.

The simplicity of the process is also another advantage that the parties get. The rules involved are straightforward because the parties are the ones that make them. Therefore, there will be no surprises. If you are currently facing a dispute, you should consider resolving it through the ADR process.




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