What is the process for resolving disputes between a franchisor and franchisee?
Resolving disputes between a franchisor and franchisee in Texas can be done through a variety of methods. Depending on the severity of the dispute, it may be best to seek out the help of a lawyer. In Texas, resolution of a dispute can be done through mediation, arbitration, or through the courts. Mediation is the process of resolving a dispute with the help of a third-party mediator who facilitates communication between the two parties and works to come to an agreed-upon resolution. This is usually a less expensive option than going through the courts and can help both parties save time and money. Arbitration is the process of resolving a dispute through the use of an arbitrator, who is a neutral third-party who is chosen by both parties and authorized to make a binding decision on the dispute. If the dispute is not able to be resolved through mediation or arbitration, then the parties can take the dispute to court. This will involve filing a lawsuit against the other party, which could lead to a jury trial if the case is complex enough. Going to court can be very costly and time-consuming, but it is an option if the parties are not able to resolve the dispute on their own. No matter what method is chosen to resolve the dispute between a franchisor and franchisee in Texas, it is important that both parties understand their rights and obligations under the franchise law and that they attempt to come to a mutually agreeable solution.
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