Arbitration in Franchise Disputes

Arbitration in franchise disputes is a process where a neutral third party, called an arbitrator, helps resolve disagreements between franchisors and franchisees outside of court. Instead of a judge, the arbitrator listens to both sides, reviews evidence, and makes a binding decision. This method is often faster and less expensive than traditional litigation. Many franchise agreements include arbitration clauses, meaning both parties agree in advance to use arbitration for resolving conflicts. This allows for a more private and streamlined resolution, making it a popular choice in the franchise industry.