How can I resolve a franchise dispute?

Hello. This is the fair trade specialist attorney at Daeryun Law Firm.

Franchise disputes often arise as differences develop between franchisees and headquarters in contract content, operating methods, and cost burdens.

In a situation like yours, it is first important to carefully check the contents specified in the contract.

You must check whether there are raw material supply conditions or price adjustment procedures specified in the contract, and whether the headquarters has the authority to unilaterally change them.

If the headquarters has violated the contract or the procedures specified in the Fair Transactions in Franchise Business Act, it is good to officially write and send a request for correction and leave evidence.

If the headquarters does not improve thereafter, you can apply for dispute mediation to the Franchise Business Transaction Dispute Mediation Council.

This council is a fair arbitration body that can resolve franchise business-related disputes without legal procedures, helping to resolve issues quickly and without cost burden.

In particular, if both parties agree to the mediation proposal, it has legal effect, so if the headquarters does not implement it, you can also claim compulsory execution in court.

That is, dispute mediation can be a substantive resolution means rather than a simple agreement process.

However, if the agreed matters are not implemented, the agreement or mediation record cannot become an enforcement title that can be enforced by the court, so the applicant must attach this and go through separate litigation procedures to obtain an enforcement title.

In this case, please proceed with direct consultation with a fair trade specialist attorney for franchise dispute resolution.