Franchise Mediation and Conciliation
Franchise agreements are required to include a complaint handling procedure which incorporates mediation and conciliation.
The Franchising Code of Conduct provides that where there is a dispute between a franchisor and a franchisee, the complainant must tell the respondent in writing:
- the nature of the dispute;
- what outcome the complainant wants; and
- what action the complainant thinks will settle the dispute.
The parties should then try to agree how to resolve the dispute, but if they cannot agree within three weeks then either party may refer the matter to mediation or conciliation.
Mediation allows the parties to a dispute to try to reach an agreement with the assistance of a mediator. The mediator's role is to facilitate. The mediator does not impose decisions or advice on the parties, but is there to assist the parties to reach a resolution.
Conciliation is similar to mediation, but with a more active role for the conciliator. The conciliator may offer advice and recommendations in the dispute, but they still do not impose decision on the parties.
Mediation or conciliation are genuine alternatives to litigation because either form of dispute resolution:
- is relatively inexpensive;
- is private and confidential (as the law allows);
- allows parties to have control over the outcome of the dispute;
- allows for settlements that have commercial flexibility;
- is less likely to destroy a business relationship.
How can we assist with franchise mediation and conciliation?
As experts in franchise law, we have resolved many franchise disputes through mediation since the implementation of the Franchising Code of Conduct in 1998.
Our team has extensive experience in mediating franchise and general disputes both locally and internationally, serving as both advisers and mediators.
