Generally, if a franchise is not producing or is having problems, it is the franchisor's job to intervene and work with the franchisee to improve the situation. As conflict escalates and the relationship deteriorates, each side may want to end it. But they can't. They are locked in to a long-term franchise agreement, each with a substantial investment in the franchise. A mediator can help the parties resolve their conflict and restore a good working relationship.
Mediation is basically a negotiation process.
A franchisor can easily overcome this concern by having a policy that mediation is available and intended to be used in every case of franchisor-franchisee conflict whenever either party thinks it is needed. We encourage our franchisees to request mediation whenever they think there is a conflict problem that needs the assistance of a mediator to resolve. With such a policy, there doesn't need to be any doubt about either party's past actions, intentions, good faith or competence. Giving in - showing weakness Parties in different cities Parties in different states Time and cost Often, the franchisor and franchisee are in different cities . The mediator has to be skilled in handling the interpersonal conflicts present in such a case as well as being familiar with the business, legal, financial, corporate and contractual issues.