A Franchise Agreement defines the relationship between a franchisor and franchisee, setting the terms for brand use, operations, and ongoing support. This playbook outlines key negotiation strategies, performance obligations, and critical clauses to protect both parties’ long-term interests.
Why This Matters: A defined dispute resolution mechanism accelerates conflict resolution, reduces litigation costs, and provides certainty on enforceability. It also minimizes operational disruption.
Negotiation strategy
If you're the Franchisor:
Ensure the clause includes a tiered approach starting with negotiation, followed by mediation, and arbitration as a last resort. Specify preferred jurisdiction and governing law to align with company policy.
If you're the Franchisee:
Negotiate for a balanced dispute resolution process that includes mediation before arbitration. Ensure the jurisdiction and governing law are favorable and enforceable.
Essential elements
1
Negotiation Step
Initial attempt to resolve disputes.
2
Mediation Requirement
Mandatory mediation before arbitration.
3
Arbitration Clause
Final binding resolution method.
Action framework
ACCEPT
Propose edits if the clause lacks a tiered approach or specifies an unfavorable jurisdiction.
EDIT
Reject if the clause mandates litigation without alternative dispute resolution steps.
ADD
Add language to include mediation and specify jurisdiction if missing.
PRO TIP
Always ensure the dispute resolution clause aligns with your company's preferred jurisdictions and governing laws.
Example clauses
FAVORABLE
Preferred Dispute Resolution Clause
"Any dispute arising under this Agreement shall first be subject to negotiation between the parties. If unresolved, the dispute shall proceed to mediation, and if necessary, arbitration in [specified jurisdiction]. The governing law shall be [specified law]."
NEUTRAL
Fallback Dispute Resolution Clause
"Disputes shall be resolved through arbitration in [specified jurisdiction], governed by [specified law]."
UNFAVORABLE
Litigation-Only Clause
"All disputes shall be resolved through litigation in the courts of [specified jurisdiction]."
Fallbacks
High-Risk Projects
For high-risk projects, ensure the clause includes expedited arbitration to minimize potential delays and costs.
International Contracts
In international contracts, specify a neutral jurisdiction and consider international arbitration rules to ensure enforceability.
Long-Term Agreements
For long-term agreements, include periodic review of the dispute resolution process to adapt to any changes in law or business environment.
FEATURED SOLUTIONS
Contract Email Agent
Self-service Al for instant contract review and markups.
Never leave your inbox. Effortless contract markups and summaries—delivered straight to your inbox. No signups, no apps, no plugins, no playbooks, no delays.
Import PDF. Redline on DocJuris. Export to Word. Save a day of work.
Import locked PDFs or Word docs and get work done with our world-class contract editing platform. Track your changes and comments and export seamlessly to MS Word without the headaches of clunky add-ins.
Markup clauses in seconds. See the reasoning, stay in control.
Negotiate with confidence using DocJuris’s AI-powered suggestions. Pick a suggested action to balance or lean specific terms in favor of a party. Or, quickly make a clause mutual or simpler with a single click without the back-and-forth.
Uncover opportunities and risks in your signed contracts.
Turn your contracts into structured insights. With Repository AI, DocJuris analyzes every imported agreement—so you always know what’s expiring, auto-renewing, or exposing risk. Total visibility, zero guesswork.
Unlike complex CLMs with long implementations and steep learning curves, DocJuris is built for speed and simplicity. We integrate with your workflow—whether connecting to a CLM or uploading agreements manually—so you're up and running in days, not months.
WEEK 1
CLM Readiness and Design
Our CX team works with you to understand your contracting challenges, prioritize key workflows, and identify the biggest impact areas. We build a tailored implementation plan that fits your needs.
WEEK 2
Install Module
We connect DocJuris to your contract repositories, set up admin and user accounts, and ensure your environment is ready for success.
WEEK 3
Deliver & Test
Your team builds initial playbooks, reviews existing clause libraries, and trains the DocJuris agent to align with your internal standards and negotiation positions.
WEEK 4
Launch
We support you in rolling out DocJuris to a pilot group or your full organization—with launch materials, training, and hands-on support to drive adoption from day one.
Not another CLM
Tackle everything your team needs using existing IT without expensive consultants, outrageous user licensing fees, or complex coding. DocJuris takes on the heavy lift and delivers your requirements with its people, process, and technology.
See how DocJuris can automate your legal, procurement, and sales operations.
DocJuris is not a law firm or a substitute for an attorney or law firm. We cannot provide any kind of advice, explanation, opinion, or recommendation about possible legal rights, remedies, defenses, options,selection of forms or strategies.