Franchisor-franchisee mediation
Franchisor-franchisee mediation is an amicable dispute resolution process involving a certified neutral third party. It precedes any legal proceedings under most French franchise agreements and aims to preserve the commercial relationship.
In practice
The French Franchise Federation and the government Médiateur des entreprises offer free or low-cost mediation procedures. A conflict over the use of the advertising fund or a unilateral change to the exclusive territory can reach a resolution in two to four months through mediation, compared to two to five years of litigation. Networks that embed mediation in their contractual culture show significantly lower dispute rates.