SENSIBLE GOALS AND STRATEGIES FOR YOUR MEDIATION PROGRAM

Why Franchisors Don’t Mediate?
Amazingly, most franchise companies do not require mediation of disputes with franchisees! This is because most franchise companies do not plan well – if at all – for the inevitable franchisee conflict. We help our franchisor clients understand that a certain amount of conflict is likely and that systematic planning for it is essential.

A key concept that we help franchisors with is the setting of Goals and Strategies for Mediation. Without prospectively determined goals and strategies, mediation lacks direction and can waste time and money.

Establishing Goals of Mediation
You must know what you want to get out of your mediation program if it is to be effective.

  • Is peace at all costs the goal?
  • Do you simply want to establish a reputation as being cooperative and supportive?
  • More cynically, do you just want to delay litigation?
  • Maybe your company just needs time to work out bugs in a young operating system?
  • Or, rather, do you want to create a forum for meaningful negotiation to create mutually beneficial solutions that make your franchise system a better place for your dealers?

Whatever you need to get out of mediation, you have to define your goals ahead of the disputes. Otherwise you cannot hope to design a mediation program that will achieve your ends.

Know Your Mediation Strategy
If you expect to achieve good results in mediation, you must set a strategy that is likely to result in the outcome you want.

We help clients understand the respective parties’ positions and how to define reasonably defensible demands. We help clients understand how to claim value in negotiation and how to use concessions judiciously. We teach clients how to conduct mediations to serve prospectively defined goals consistent with the company’s long term business interests.

Effective use of mediation involves much more than a clause in a franchise agreement making mediation mandatory. Contact us to see how much more can be done with a thoughtful mediation system.

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