Franchise disputes can be a complicated concept to fully grasp. Like any area of law, franchise dispute lawyers deal with a range of complex cases that use terms difficult for the everyday person to understand. Disputes often occur between a franchisor and franchisee, with professional advice and assistance from a franchise disputes lawyer often required to settle the case. But what exactly is a franchise dispute, and is it time for you to call a professional?
What is a Franchise Dispute?
To understand franchise disputes properly, you need to first understand who they involve. Such disputes handled by franchise disputes lawyer professionals will involve two people – the franchisor and the franchisee.
A franchise is essentially an investment into another business (the franchisor) for the right to use their business model and products. There are many franchises around Australia, with these businesses known as independently owned "franchises" owned by franchisees.
Disputes between franchisors and franchisees are common, as any commercial relationship is at risk of an inevitable disagreement, breach of contract, economic conditions, and various other things that can impact the partnership.
Why do Franchise Disputes Happen?
Franchise disputes can occur for a wide range of reasons, which is why established franchise dispute lawyers often have experience with a range of dispute types and cases. Some of the reasons that a franchise dispute may occur include unsatisfied franchisees, misrepresentations by franchisors, breaches of any agreements, terminations, intellectual property matters, failure to comply with requirements, and more.
Whether you're a franchisor or a franchisee, it's likely that you'll face at least a very minor dispute at some stage. The good news is that such disputes can be handled behind closed doors. Only major franchise disputes will see the client and franchise dispute lawyers entering a courtroom.
What Terms Do I Need to Know?
- Franchise Law – In the most basic terms, franchise law is an area of law that's handled by a franchise disputes lawyer. Such lawyers will assist business owners (both franchisors and franchisees) with many different legal processes, from reviewing disclosure agreements through to advising them on the best way to stay protected throughout their operations.
- Dispute Notice – Dispute notices are sent out to identify a party's claim against another's. In a franchise dispute, a franchisor or franchisee will identify the action they want taken to resolve a franchise matter. Whether you've received one of these yourself or you're eager to have one drawn up, these legal documents need to be properly prepared by franchise disputes lawyers. If the notice doesn't achieve the intended outcome, mediation will be required.
Mediation – Mediation is a legal term that describes the stage in which two parties finally come together to resolve the franchise dispute. A mediator will be present, along with a franchise disputes lawyer for both parties. During mediation, the parties will attempt to negotiate. If the franchise dispute is high in complexity and the parties fail to agree on a settlement, the dispute can become a lawsuit.