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In franchising, mediation and arbitration is used very infrequently as an alternative to court. The main reason is that the franchisor is more than happy to rely on their economic dominance by outspending the impoverished franchisee. Why would a franchisor do anything when they’ll win the war through attrition in the end? Mediation and arbitration can also be used to cynically scout out the opposition’s case.
Les Stewart is an independent franchise industry analyst. He has come to understand that franchising is as revolutionary to small business as the printing press was to education.
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