Understanding Your Franchise Agreement: Common Dispute Triggers
Most franchise disputes stem from a handful of recurring issues in the franchise agreement. Here's what to watch for before a conflict escalates.
Litigation can take years and cost hundreds of thousands of dollars. Mediation resolves most franchise disputes in weeks — here's how.
When a franchise dispute escalates, the instinct is often to call a lawyer and prepare for battle. But litigation is expensive, slow, and unpredictable — and for most franchise disputes, it's unnecessary.
The average franchise litigation case takes 18 to 36 months to resolve and costs both parties between $150,000 and $500,000 in legal fees. Mediation typically resolves the same disputes in four to eight weeks, at a fraction of the cost.
The difference isn't just speed and money. Litigation is adversarial by design — it produces winners and losers, and it destroys the franchise relationship in the process. Mediation is collaborative. The goal is a negotiated resolution that both parties can live with, which often means the franchise relationship can continue.
For franchisees, mediation also levels the playing field. In litigation, the franchisor's resources and institutional knowledge give them a significant advantage. In mediation, both parties have equal standing, and a skilled mediator ensures both perspectives are heard.
Most franchise agreements require mediation before arbitration or litigation. Even when they don't, choosing mediation first is almost always the right decision. Contact us to learn how mediation can resolve your dispute.
Laura Canada Lewis
Franchise Mediator · Canada Lewis Mediations
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Start with a free, confidential consultation. We'll explain your options and how mediation can help.