What type of dispute resolution methods are available for franchisors and franchisees?

In Washington, there are multiple dispute resolution methods available for franchisors and franchisees. These methods are put in place to allow the two parties to settle their disagreements without needing to go to court. The most common dispute resolution methods include mediation, binding arbitration, and non-binding arbitration. Mediation is a negotiation process in which an impartial third-party mediator helps the two parties reach an agreement. The mediator takes no part in the decision-making process, and their main goal is to help the two parties come to a mutually beneficial agreement. Binding arbitration is a process in which the two parties present their cases to an arbitrator, who then makes the final decision. The decision of the arbitrator is final and binding on both parties, meaning they must follow the arbitrator’s ruling. Non-binding arbitration is very similar to binding arbitration, but the decision of the arbitrator is not binding on either party. This means that either party can accept or reject the ruling. Finally, alternative dispute resolution (ADR) is another dispute resolution method available for franchise disputes. ADR typically consists of a third-party mediator, but sometimes a panel of three mediators is used. The mediators will work to bridge the gap between the two parties and create a mutually agreeable solution. These dispute resolution methods are available in Washington to help franchisors and franchisees settle their differences without needing to resort to court.

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