arbitration in franchising

Arbitration in franchising is a process where both the franchisor and franchisee agree to resolve disputes outside of court by appointing a neutral third party, called an arbitrator. This method is typically faster, more private, and less formal than court litigation. The arbitrator reviews the case, listens to both sides, and then makes a binding decision. Many franchise agreements include arbitration clauses to help prevent lengthy and costly legal battles, providing a clearer and more efficient way to settle disagreements related to the franchise relationship.