Disputes between franchisors and franchisees can stall operations, generate losses, and undermine an entire business model.
Commercial mediation allows these conflicts to be managed quickly, confidentially, and professionally, avoiding lengthy litigation and preserving the value of the network.
Book a free 30-minute consultation with a trained Case Manager.
Disputes in franchising
The relationship between franchisor and franchisee is governed by complex agreements that establish rights, obligations, operating standards, and shared investments. When one party believes these commitments have not been met, conflicts may arise regarding brand management, supplies, operational support, fees, compliance with guidelines, or financial expectations. Franchising disputes are often delicate because they involve both contractual aspects and commercial dynamics that are essential to the brand's reputation.
The consequences for companies
An unresolved dispute between franchisor and franchisee can generate significant consequences:
- blocking of point of sale activities
- risks to brand reputation
- drop in sales and loss of customers
- interruption of supplies and marketing campaigns
- claims for compensation or contractual penalties
- risk of long and costly litigation
Timely conflict management is essential to avoid impacts on the entire franchise network.
Why choose mediation
Commercial mediation is particularly effective in franchising because it allows the parties to manage the dispute in a protected, flexible, and collaborative environment. The main advantages include:
- quick turnaround times , often within a few weeks
- reduced costs compared to the court
- possibility of preserving the business relationship
- definition of customized solutions , not limited to contractual rules alone
- total confidentiality , important for brand protection
- management of relational as well as legal dynamics
Mediation allows for finding a compromise that takes into account the network's interests and the needs of the individual franchisee.
Why choose ADR Center
ADR Center is one of the most experienced organizations in Europe and worldwide in managing commercial disputes, including those in the franchising sector. We work with franchisors and franchisees to quickly identify the causes of conflict and develop a solution that protects both the brand and the business model.
Our support includes:
- Analysis of the franchising contract and areas of non-compliance
- impartial management of the parties' positions
- facilitation of a constructive discussion
- definition of new sustainable operational and commercial agreements
- protection of the confidentiality of the entire procedure
Common examples of franchising disputes
- The franchisee does not meet the operational or quality standards imposed by the franchisor.
- The franchisor fails to provide the promised support, causing drops in store performance.
- Delays or problems in centralized supplies that impact sales.
- Disputes regarding periodic fees, royalties, or calculation methods.
- Conflicts over the use of the trademark or the management of the assigned territory.
- Disputes over termination, renewal, or business transfer clauses.
How the service works
- Book a free consultation with an experienced franchising Case Manager .
- Let's analyze the dispute and the contractual aspects involved together.
- We evaluate whether mediation is the most suitable solution for your case.
- We arrange a meeting with a specialized franchising broker.
- The parties shall work together to reach a rapid, effective and sustainable agreement.
Questions & Answers
ADR Solve is a global online service powered by ADR Center that makes it easier and more accessible to start a mediation process to resolve legal disputes, anywhere in the world and in any language.
With the help of a professional, accredited mediator, parties can avoid lengthy court proceedings and find faster, cost-effective solutions to civil, commercial, or family disputes.
When you fill out the online request form, ADR Center will review the information you provide about the dispute and the parties involved.
Based on this, we will schedule a free 30-minute call with one of our experienced case managers, who speaks the selected language.
During the call, you and the case manager will evaluate whether your dispute is suitable for mediation.
If appropriate, you’ll have the option to officially file a request for a First Online Mediation Session and invite the other party to participate.
Once you file the request, our case manager will contact the responding party (by email or phone) to ask if they agree to attend the session.
- If they decline, no further action is taken and there are no additional costs.
- If they accept, ADR Center will appoint a professional mediator (in accordance with our International Mediation Rules) and coordinate the date and time for the online session.
The First Online Mediation Session is a confidential virtual meeting, up to two hours long, where a professional mediator meets both parties to discuss the dispute and possible ways to reach an out-of-court settlement.
The mediator may also use private breakout rooms for separate discussions with each party. All conversations are protected by confidentiality rules under ADR Center’s International Mediation Rules.
After the session, both parties (and their legal advisors, if present) can decide whether to:
- Continue with additional mediation sessions, or
- End the mediation process and consider alternative legal actions.
Parties can attend mediation with their lawyers or have them initiate the process on their behalf.
Lawyers and general counsel can actively support their clients throughout the mediation to ensure legal clarity and assist in reaching agreements.
ADR Solve can handle a wide range of civil, commercial, and family disputes of any value.
A full list of eligible dispute types is available in the online request form.
The initial 30-minute assessment call with a case manager is completely free and with no obligation.
Filing a request for the First Online Mediation Session requires a €100 administrative fee. If the other party does not agree to participate, there are no additional costs beyond the €100 filing fee.
If the responding party agrees to participate, each party pays €250 for the session.
If the parties decide to continue with the full mediation, the fees are agreed based on ADR Center fee schedule for full mediation.