My franchisor had done me wrong. Who do I contact if I want a mediation or arbitration against the franchisor?
Answers:
The contract usually will have a provision specifying what organization should mediate the dispute. Be careful with this, as mediation can be very expensive and the contract may even specify that the party bringing mediation must pay all costs if they lose.
The contract binds both parties. Make sure you've read it and understand under what circumstances the franchisor may terminate. Asking for mediation doesn't, by itself, constitute breach of the contract as long as you keep performing.
someone above them within the franchise. If not, the court.
No, your franchisor cannot terminate you. If they do they have to refund your money. Does your contract specify who the arbitor is? If so, contact them.
If I may guess, the franchisor is Coverall.
Judge Judy!
Consult with a business lawyer first. Yes. It will cost you money but he or she will make sure that you keep yourself out of trouble while going after your franchisor to correct the problems.
Your contract spells out the ways the relationship can be terminated. Read through it and make sure you contact your franshisor according to the rules of the agreement. Going through arbitration won't terminate your agreement unless such an action is stated in the contract or it is one of the agreed results garnered from arbitration. Again, a business lawyer will help you stay protected.
And it's your lawyer who'll set up the arbitration with the franchisor according to the rules of the contract you signed. Your state may view those rules differently than what is stated in the contract. But here again, your lawyer will help you with that. And hopefully your state's laws will put things more into your favor. You might actually be able to sue when the contract states only binding arbitration.
Arbitration is cheaper than a lawsuit, but it's still not cheap.
One more bit of advice. Consult with your local chamber of commerce and other business owners for the names of lawyers they would recommend. And if the first lawyer doesn't want to pursue legal action then warily consult with a few more. It's all too easy to take a case without merit to a lawyer who's willing to bill you dry. Don't let anger cloud your judgment over the facts and what your long range goals are.
Good luck.
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