Truth be said, arbitrations are not as faster and cost-effective forums for individuals to solve their disparities. Even though arbitration can be efficient and cheaper compared to court, the benefits will only be realized when in the hands of the right practice. Thus, in the face of franchise arbitration, seek the perfect candidate who is extensively experienced and with proven record to back this fact. Otherwise, an inadequate practice can result in being elusive when it comes to the arbitration of franchise disputes.
More often, franchisors and their lawyers tend to categorize arbitration stipulations as a fit all agreement. In our writeup, you will learn more about what litigators feel about franchise arbitration. You also get to unveil the benefits of pursuing it as a franchisor.
Generally, arbitration is considered to be the proceeding that takes place privately. That leaves no much of its traces accessible to the general public. Therefore, it becomes a challenge to compare the timeframe of an arbitration process to that of the court process. However, the court has to come in to confirm an arbitration award; otherwise, it will be non-void, which means it cannot be enforced. The ratification process may prolong the arbitration timeline. Nevertheless, it gives the franchisor the chance to amicably and quickly resolve disputes out of the court.
In terms of the cost attached to arbitrations, it is vital to know the amount spent is reliant to the extent of the proceedings. Given that the parties involved are in contact, they are at liberty to make the process more efficient. Although, there are restrictions attached to the settlement of franchise disputes, such as discover. It is essential to have prepared details of your side of the story before heading for the trial. Documentation, such as printed responses, depositions, and other relevant documents, act as valuable tools that will ease the trial process for the parties as well as their legal representatives. But, remember, a lot of time in the arbitration process can be consumed at the discovery phase, which may turn out to be costly for the client.
Although the administrative costs and facility fees are an additional cost to the discovery, arbitrator charges should also be factored in. Note, getting an experienced candidate in franchising should be a priority if you want to have a successful proceeding. But will all these expenses outweigh what is paid for filling court litigation? According to records, you may incur less fee in arbitrations that in court. All you have to do is maintaining your costs law and being a good negotiator when looking for a knowledgeable arbitrator. Generally, lawyers are the highest cost elements in any litigation forum, but keeping the arbitrations shorter as opposed to court action can reduce the attorney’s cost.
Arbitrations are privately held proceedings only attended by the specific parties as may be designated by the particular individuals and their counsel. That is contrary to court hearings that are open to the general public. It is due to confidentiality attached to franchise arbitration that many franchisors choose to pursue this option to settle their disputes.