Why Mediation?
Why is it better to resolve a franchise business dispute without going to court?
Franchise Mediation is a different arena than regular business mediation. In franchise, the existing relationship between franchisee and franchisor is often a much more personal relationship than a regular commercial partnership between a supplier and the buyer.
The partnership situation between franchisee & franchisor, relational aspects, preserving reputations, influence on the larger team and the possibility of a continued cooperation are important reasons to first explore mediation before going to court.
Main reasons to choose mediation*
-
Improve or carefully end the relationship with the other party
-
Faster than legal procedure
-
The real cause of the conflict can be better addressed
-
Creative solution possible
-
Emotions play a major role in the conflict
-
Confidentiality in mediation
-
Uncertainty about the outcome of a legal procedure
-
Keep matters in your own hands and thus manage risks
-
Lower costs compared to legal proceedings
* Source: Research report Platform Business Mediation: Opportunities and obstacles for business mediation among companies in The Netherlands - publication April 2024 ( platformbusinessmediation.nl )
More about mediation
What is mediation and what are the basic principles?
1
What is Mediation?
-
Mediation is a step-by-step process in which the parties themselves, under the guidance of a neutral expert, the mediator, seek to resolve or prevent a dispute or conflict arising between them through a structured process of balancing interests.
2
Legal mediation
-
Legal mediation focuses on the autonomy and the personal, business and commercial interests of the parties, with the mediator not only facilitating but also taking an active, solution-oriented and evaluative approach. Other, non-legal issues often can also be resolved.
3
Is legal mediation different to regular mediation?
Yes, in legal franchise mediation
-
the mediator ensures a total solution
-
relational aspects are addressed
-
conflict specific aspects are addressed if necessary
-
Legal aspects are, if needed, part of the mediation
-
the mediator has a distinctive role as director of the process
-
the mediator takes the initiative and does reality testing
-
the mediator actively thinks along with practical feasible and sustainable solutions
-
the mediator can submit a 'mediators proposal' for a solution
4
Basis principles mediation
-
voluntary
-
but commitment and willingness to resolve things
-
until a settlement agreement is signed by all parties, non-binding
-
confidentiality
-
focused on the argument rather than the person
-
focus on the future rather than the past
-
focusing on individual and mutual interests instead of positions
-
taking your own decisions instead of leaving them to others, e.g. the court
-
come up with your own solutions
-
communicate directly with each other and with the mediator
-
individual confidential (caucus) meetings with the mediator are possible