Our last three franchise bulletins have focused on various tools
and mechanisms for resolving disputes within a franchise
network.
But, as the saying goes, "Prevention is better than
cure."
Based on our experience in resolving disputes between
franchisors and franchisees, here are nine practical tips that will
help you better prevent such disputes within your network.
Be clear
Many disputes are the result of ambiguities or misunderstandings
between a franchisor and one or more of its franchisees.
It is therefore very important that all communications be as
clear as possible.
This advice applies both in the pre-contractual phase (where
the franchisee must have a clear understanding of what to expect
from the franchisor, as well as their respective roles and
responsibilities in the contractual and business relationship)
and in the franchise agreement itself, as well as in all
communications from the franchisor throughout the contractual
relationship.
