Mediation Case Study: Resolving a Restaurant Franchise Dispute

Overview

Mediator: Felicity Steadman

Sector: Hospitality Sector

Value: £200,000

Outcome: After nearly ten hours of mediation, a settlement was successfully achieved. The parties agreed on a compromise settlement figure and a comprehensive release agreement that addressed the concerns of both parties.

Background

In this case study, a franchise owner of restaurants was engaged in a commercial dispute with their franchisee. The franchise owner alleged unethical behaviour on the part of the franchisee, including deliberately damaging the franchise’s goodwill value and failing to make timely payments. The franchisee, in turn, sought termination of the franchise agreement and compensation for their perceived losses.

Challenges

The mediation process faced two primary challenges:

1. Reaching a mutually agreeable settlement figure: The parties were initially far apart in their proposed settlement amounts.
2. Negotiating acceptable release and discharge terms: The franchisee insisted on a full release from any future claims, while the franchise owner wanted to ensure they were adequately compensated for damages.

Mediation Strategy

The mediator, Felicity, employed a strategy focused on patience, thoroughness, and careful problem-solving. They engaged in private meetings with both parties to gain a deeper understanding of their perspectives and priorities. They meticulously reviewed a substantial volume of documents, including mediation statements, to thoroughly grasp the nuances of the case.

Conclusion

This case study highlights the importance of patience, meticulous preparation, and careful negotiation in resolving complex commercial disputes. The mediator’s expertise and experience proved invaluable in bridging the gap between the parties and achieving a mutually beneficial outcome.

Watch Felicity Steadman Discuss the Case here: