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Keys for Successfully Mediating Franchise Disputes

By Charles S. Modell
October 02, 2015

Many franchise agreements now require the franchisor and franchisee to meet face-to-face, with an independent mediator, before any adversary proceeding is initiated between them. Even without such a provision, many practitioners advocate mediation as a means of settling franchisor-franchisee disputes.

Mediation offers many advantages to both parties, not the least of which is the opportunity to avoid hundreds of thousands of dollars in legal fees incurred in a lawsuit. Even for those who can afford the cost of a legal battle, mediation allows resolution of their own differences, rather than having someone who knows nothing about their business, i.e., a judge, jury or arbitrator, decide for them.

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