FAQs for Franchise Mediation Program
WHO'S IN THE FRANCHISE MEDIATION PROGRAM?
The Franchise Mediation Program has developed into a dynamic entity, offering not only dispute resolution services but also promotional, educational and training opportunities to encourage better use of alternatives to court proceedings. The leadership of the Program includes franchisors, franchisees and leading attorneys and franchise associations.
HOW DOES IT WORK?
The process begins with a Dispute Letter (Appendix A to the CPR Procedure), which alerts CPR that a dispute has arisen and the parties have decided to use the Franchise Mediation Program to help resolve it. If CPR is further notified that negotiations have not been successful, and with both parties concurrence, CPR provides the franchisee and the franchisor with the names of five qualified mediators located in the franchisee's region. If the parties cannot agree on a mediator, CPR assists them to do so.
Mediators are drawn from the CPR Franchise Panel of Neutrals, consisting of approximately 200 prominent attorneys located throughout the United States.
WHAT KINDS OF DISPUTES ARE MEDIATED?
Since the Program's inception, disputes have involved the following issues, and others:
- Alleged financial violation, e.g. under-reporting
- Franchisee development rights
- Termination of franchise
- Renewal of franchise
- Customer service
WHAT'S THE PROGRAM'S TRACK RECORD?
Thus far, a success rate of approximately 80% has been achieved in cases in which the franchisee agreed to participate, and in which a mediator was needed. Many more disputes have been resolved prior to the need for a mediator's intervention.
HOW DO I PARTICIPATE AND WHAT DOES IT COST?
Parties to a dispute who require assistance to identify a mutually acceptable mediator will incur a CPR administrative fee of $1,500, which is split between the parties or as the parties otherwise agree. CPR Mediators usually charge their normal rates as attorneys, most in the range of $200 - $450 per hour, depending significantly on location.