Mediation in franchise as a conflict resolution
Engage Koelewijn & Partners so that you don't have to terminate the franchise collaboration and don't need to take the step to court!
Franchising brings many entrepreneurs numerous benefits. However, sometimes the interests of the franchisor can be opposed to those of the franchisee(s). Collaboration can also come with differences in opinion and/or perspective. Since we support both franchisors and franchisees, we are uniquely positioned to play the role of mediator. This helps you avoid costly legal procedures with lawyers and arrive at a resolution more quickly.
What is mediation in franchise?
Mediation involves resolving conflicts outside of court with the help of an independent party who mediates. In a court case, usually only one party is satisfied with the outcome. Mediation focuses on a result that makes both parties happy. In a conflict, the franchisor and/or franchisee(s) may no longer be able to come up with a suitable solution together. Both remain steadfast in their own positions and cannot objectively assess the situation. A mediator is neutral, independent, and does not take sides. Only in this way is it possible to reach a solution. Choosing mediation in franchise costs you less money, time, and energy than a legal route and prevents the franchise relationship from unnecessarily deteriorating.
Because we also establish and develop franchise organizations, we understand the interests of franchisors and know the challenges franchisees face. In our role as mediator, we use our knowledge and experience to arrive at a good solution. Curious why we should fulfill this role in your situation? Read below how we have previously applied mediation in franchise.
Mediation in franchise for one of our clients
Situation
In the startup phase of the franchise organization, the franchise formula proved to be very successful. At the same time, it became clear that a step up in professionalism in supporting the franchisees was necessary. Through better support and agreements, the franchise formula as a whole could become more successful. The franchisees were unable to resolve issues with the franchisor and engaged us.
Challenge
A previously engaged law firm had viewed the renewal of agreements solely from the perspective of the franchisees' interests. They did this with too little regard for the specific franchise culture and too little focus on creating a win-win situation for both the franchisees and the franchisor. As a result, the franchisees became divided, the relationship with the franchisor deteriorated, and the renewal process stagnated.
Approach
By illustrating how other franchise formulas dealt with similar challenges, it became possible for the franchisor and franchisee to jointly come up with new opportunities and solutions. The joint goal was reestablished. From our role, we helped to approach the previously made agreements and arrangements primarily from an operational, but also from a legal perspective. Because we work for both franchisors and franchisees, and develop the work processes and organization of formulas ourselves, we were (and are) an accepted dialogue partner for both parties. Thus, we guide the process and impartially bring in professional knowledge when it can contribute to creating a solution.
Result
- Realization of an improved franchise agreement
- Acceptance by the association of franchisees and the franchisor with a unanimously positive recommendation by the franchise council
- Implementation of an improved contract and improved processes
- Space for restoring trust within the franchise organization
Want to know more about the possibilities of mediation in franchise? Feel free to contact us.
