Introduction:
A franchise agreement is a binding Agreement, which the
franchisee is allowed to operate their business or to offer, sell,
and distribute goods or services (or do both). The franchise fee is
paid to the franchisor on an ongoing license basis or under a
one-time agreement. The primary goal of this agreement is
protecting franchisor's Intellectual Property. It's also to
ensure that every franchisee runs the company in the way the
franchisor is known for in terms of their name and field.
"Arbitration is a procedure in which a dispute is
submitted, by agreement of the parties, to one or more arbitrators
who make a binding decision on the dispute. In choosing
arbitration, the parties opt for a private dispute resolution
procedure instead of going to court."1 An
impartial and more franchise specific third party (arbitrator)
makes legally enforceable decisions following the evaluation of
evidence in arbitration, which is a type of Alternative
