CHAPTER 9Managing Disputes
In a franchise system, conflict between the franchisor and franchisee is inevitable. Resolving conflicts with franchisees through formal litigation, however, is an expensive and time-consuming process that can significantly impede the growth of a franchisor as well as distract the franchisor from the attainment of its business objectives. In my experience, protracted litigation yields no winners, only successful or unsuccessful litigants.
As a result, most franchisors prefer to engage in battle in the marketplace or in the boardroom rather than in the courtroom. Nevertheless, in some instances an amicable resolution or settlement of a conflict seems unattainable. If a dispute with a franchisee or prospective franchisee ...
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