How do you deal with disputes between franchisors and franchisees?
When disputes arise between franchisors and franchisees in Washington, there are several steps that can be taken to resolve them. The first step is to try negotiating with the other party. This may involve the franchisor or franchisee presenting their case for why the dispute should be resolved in their favor. It may be helpful to enlist the help of an attorney or mediator to help facilitate the negotiation process. If the dispute still cannot be resolved, the next step is to file an official complaint with the Washington Franchise Investment Protection Board (FIPB). The FIPB is a government agency that has the authority to investigate franchise disputes in the state of Washington. The FIPB will review the complaint and contact the parties involved to determine their level of involvement and what the dispute is about. They will then attempt to resolve the dispute in an informal manner. If this is not successful, they may refer the case to the Washington Department of Financial Institutions (DFI). The DFI is an administrative court that is responsible for adjudicating franchise disputes. The DFI will review the case and make a decision based on the evidence presented by both parties. If a decision is reached, the court will order the parties to adhere to whatever terms the court has decided. Finally, the parties may always consider initiating legal action in civil court, if they believe the dispute is not suitable for an administrative court. However, it is typically best to resolve the dispute as quickly and efficiently as possible by engaging in negotiations at the early stages and is usually preferable to taking the matter to court.
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