If you have a dispute with your franchisor, your first step is to voice your concerns to your franchisor, either directly or via the franchisee advisory council (if one exists within your franchise system). Ensure you are clear on the rights, responsibilities and obligations of you, the franchisee, and your franchisor as outlined in your franchise agreement to make certain that the issue does not stem from a misunderstanding of an aspect therein.
If speaking to the franchisor and negotiating the issue directly does not resolve it to your satisfaction, the next step would be mediation. In mediation, a mutually agreed upon and neutral third party works with you and the franchisor to reach a mutually acceptable resolution.
The Canadian Franchise Association’s Ombudsman program may be a useful first step in this process. This confidential free service can help facilitate discussion of issues, assist both parties in finding a satisfactory solution and, where applicable, refer unresolved complaints to alternate methods of dispute resolution.
Litigation should be considered only as a last resort in cases where direct discussion and mediation have not been successful.
Expanding into unchartered territory can be nerve-wracking—which is why the CFA has several programs in place to support franchise systems and suppliers to help international franchisees settle into the thriving Canadian business landscape.