What is the process for resolving disputes between a franchisor and franchisee?

Resolving disputes between a franchisor and franchisee in California is a process that begins with attempting to come to a resolution informally. Franchisors and franchisees are encouraged to approach each other in a spirit of cooperation and attempt to settle the issue through direct communication. If a resolution cannot be reached informally, the dispute can be taken to mediation or arbitration. Mediation involves a third party bringing the parties together to discuss the situation. The third-party makes sure everyone is heard and helps them work towards a resolution. The mediator does not make decisions or force an outcome. Arbitration is a way to take a dispute to a neutral third party who acts as a judge. The arbitrator listens to all arguments, weighs the evidence, and then makes a decision to resolve the dispute. Both mediation and arbitration are typically cheaper and faster than going through a lengthy and expensive court process. However, the decision in either case is binding, so it is important that both parties have legal representation and understand the implications of the outcome.

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