Making the Most of Your Franchise Arbitration

Arbitration has become the go-to dispute resolution method for franchise disputes, and for good reason. It's typically faster and more cost-effective than litigation, and the private nature of proceedings helps preserve business relationships. Here are key tips for franchisees and their counsel to navigate the arbitration process successfully.

Choose Your Arbitrator Wisely

The arbitrator selection process is crucial. Look for someone with both franchise and industry-specific experience. Talk to colleagues who have appeared before them. Remember, you're not just looking for someone who might favor your position – you want a fair, efficient decision-maker who understands franchise dynamics.

Leverage the Informal Setting

One of arbitration's biggest advantages is its flexibility. Unlike court proceedings, you can often work with the arbitrator to streamline procedures and focus on what matters most. Consider:

• Limiting document discovery to essential materials
• Using written statements instead of live testimony for secondary witnesses
• Conducting preliminary conferences by video to save time and money

Prepare a Focused Case

Arbitrators appreciate concise, well-organized presentations. They're usually paying close attention to every exhibit and argument. Make it count by:

• Developing a clear narrative that ties your evidence together
• Using visual aids and chronologies effectively
• Submitting a detailed pre-hearing brief that maps out your case

Don't Ignore the Franchise Agreement

Your franchise agreement's arbitration clause isn't just about venue – it may contain important procedural terms. Review it carefully for provisions about:

• Required pre-arbitration mediation or negotiation
• Specific procedures for selecting arbitrators
• Any other terms relating to arbitration procedures

Keep the Big Picture in Mind

Remember, most franchisees and franchisors have ongoing relationships. Consider how your conduct during arbitration might affect future business dealings. A professional, solution-oriented approach often yields better results than scorched-earth tactics.

By following these guidelines, you'll be better positioned to achieve a favorable outcome while maintaining important business relationships.