Franchise Mediation and Conciliation
The Franchising Code incorporates a mandatory dispute resolution process which includes mediation and conciliation.
This process allows a party to a franchise agreement to refer a dispute to mediation or conciliation (provided that the steps set out in the Franchising Code are followed).
Once a dispute is referred to mediation or conciliation, the other party is required to attend.
The purpose of the dispute resolution process is to provide the parties with a cost effective alternative to litigation.
What is Franchise Mediation?
If the parties to a franchise agreement have followed the dispute resolution procedure set out in the Franchising Code, but are unable to agree how to resolve the franchise dispute 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 an agreement. This means that the mediator does not impose decisions on, or provide advice to 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 to the parties to the dispute, but will not impose a decision on the parties.
Why choose Mediation or Conciliation?
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.
Why Haarsma Lawyers?
At Haarsma Lawyers we offer:
Accredited Mediators: Our team includes accredited and experienced mediators who can guide you through the process. We have assisted franchisors and franchisees Australia wide in franchise mediations since 1998.
Franchise Expertise: We specialise in franchising disputes, meaning we understand both the legal framework and the commercial realities facing franchisors and franchisees.
Practical, Commercial Solutions: Our focus is on outcomes that protect your business interests.
Our mediation services
- Drafting Notices of Dispute.
- Pre-mediation preparation.
- Mediation and/or conciliation facilitation.
- Drafting settlement agreements.
Next Steps
Contact us so that we can assist you with any franchise mediation.
Please read our guide on the franchise mediation process.
If you would prefer to avoid formal mediation - you can start with negotiation - our team of franchise lawyers can advise you on whether a settlement is realistic and cost-effective.
