The four stages of a franchise dispute
Stage 1 – Initial dispute
When a dispute arises, it will usually be dealt with informally during a conversation between the franchisor and franchisee. Even at this early stage, legal advice can help you to deal with the initial matters in conflict and arrive at a strategy if the dispute is ongoing.
Franchisors may at times overlook the need for early advice, relying on their existing knowledge of the Franchise Agreement. Our lawyers can assist you to avoid escalating the matter by setting out your rights against the franchisee and communicate with the franchisee on your behalf. Similarly, franchisees should obtain early advice to understand their position.
Stage 2 – Notice of dispute
If a franchisor and franchisee cannot reach an agreement through informal conversations, one party will issue a Notice of Dispute. This notice outlines the specific issue at hand and the necessary steps that party requires to reach a resolution. As this notice may be the starting point for any formal proceedings, it is important that its content is carefully considered.