Keeping The Peace
Franchise dispute? Try mediation, says New York.
By Michelle Prather •
Opinions expressed by Entrepreneur contributors are their own.
The National Franchise Council (NFC) took one step forward inits quest to turn franchisors and franchisees away from litigationand toward mediation. This spring, state Attorney General EliotSpitzer made New York the first of 12 states with franchiseregulation to adopt the NFC's education process. Now theNFC's goal is to get the other states on board.
As it stands, if a franchisor commits a minor violation of theNew York Franchise Act (for example, not upholding the disclosurerequirement), the franchisor can go through NFC retraining infranchise sales practices rather than endure an enforcementproceeding and its consequences. "This shows franchisors arewilling to step up to the plate to solve problems and cooperatewith regulatory agencies, whether it's on a federal or statelevel," says NFC chair Morton Aronson.
Continue reading this article — and all of our other premium content with Entrepreneur+
For just $5, you can get unlimited access to all Entrepreneur’s premium content. You’ll find:
- Digestible insight on how to be a better entrepreneur and leader
- Lessons for starting and growing a business from our expert network of CEOs and founders
- Meaningful content to help you make sharper decisions
- Business and life hacks to help you stay ahead of the curve