Mediation for Franchisee Dispute

(E- Magazine managing conflicts integrated in www.mediatoraffair.com)

The reporters detailed a bunch of commercial disputes, which have been taken into account for a detailed study and we, the publication group authorised to suggest means for resolutions to that effect.  One among those disputes reported is as follows and we are delighted to put forward some pragmatic suggestions to resolve the commercial conflict.

In Olloor, popularly known as jewellers hub in Kerala within the limits of Trichur Corporation, Kerala in India one Mr. Mathew, a jeweller for his proprietary concern and brand “Daffodils” have appointed franchisees all along Kerala State. In 2012, Mr.Shashidharan hailing from Palakkad availed a franchise of the said brand and he was automatically appointed as the franchisee in Palakkad District. But unfortunately he is in the losing side to a certain extent.

Against the Franchisee Agreement executed by Mr. Mathew and Mr.Shashidharan, Mr. Mathew failed to comply with the important clauses of the same apart from breaching his assurances to the effect of promoting the franchise business. With all these reasons behind,  the franchise of Mr.Shashidharan has become a wasteful affair. After facing the wrath of losses for one year, Mr.Shashidharan approached Mr. Mathew, the franchisor to return the entire amount includes the payment towards rent to his land lord and initial investment and subsequent payments against supplying of articles as he was experiencing a heavy loss. Mr.Shashidharan alleged that Mr. Mathew has violated all the clauses to the effect of promotion and advertisement in the Franchise Agreement. Hence as such Mr.Shashidharan reiterated that so far as the agreement in fact subjected to violation, he could not proceed with the franchisee business, and he wanted the above said money back.

Mr. Mathew did n’t yield to the requests of the franchisee. He still continued promising the promotional activities including advertisements. Yet while confronting with Mr.Shashidharan in respect of the issue, he never intended to loose his money against promotional activities.

Mr.Shashidharan decided to move the court.

RESOLUTIONS

(As Suggested by Our MEDIATOR)

If Mr. Mathew and Mr.Shashidharan are trying for a Mediation for resolution of their conflict, the following may be adopted for a settlement.

·         The monthly franchisee fees has to be discontinued till a  specified time limit

·         So far there is a great extent of breach of promises and violation of clauses to the effect of promotional activities of the franchisee including advertisement, the franchisor shall provide the franchisee a 25% of the rent amount per month.

·         The franchisor should comply with all the clauses provided in the franchisee agreement.

·         The franchisor should help the franchisee in marketing the articles in the market price value.

In case these above responsibilities are taken by the franchisor (Mr. Mathew), without much liabilities he could mend his relationship with the franchisee (Mr.Shashidharan) so that they can enhance the business to a level where further derailment in respect of he franchisee relationship can be avoided.