In view of the fact that a franchise business model can be used for a wide range of businesses, it is usually advised to involve sector/industry experts in the resolution of conflicts arising from the franchise arrangements.
Where the issue is of a technical nature, an expert is best fitted to resolve the conflict and produce a binding decision.
However, the widely accepted proposition that it is more beneficial for parties to resolve their differences by negotiated agreement rather than contentious proceedings is one of the underlying principles for the adoption of Alternative Dispute Resolution (ADR) mechanisms.
These are suggested in a Whitepaper presented at a day ADR Awareness and Education for Businesses organised by Nigeria Association of Franchise Business Members (NAFMB) at Lagos Chamber of Commerce and Industries (LCCI), recently.
Speaking on the Whitepaper, the partner, Jackson Etti & Edu and keynote speaker, Asamah Kadiri, advised current and budding business owners to elicit the services of professionals to regularise their entities and contracts, especially in franchise business sphere.
According to Kadiri, the ongoing relationship between the franchisor and franchisee gives rise to dispute on the basis of shared interest thus; there is need for conflict management.
To manage the conflict, Kadiri said, “ADR offer several advantages for the resolution of franchising disputes”, adding that “The experiences of parties using the ADR processes have revealed the fact that parties tend to arrive at settlements that are more creative, satisfactory and lasting than those imposed by the court.”
To the senior advisor, Trade Policy and Business Enabling Environment, Nigeria Competitive Project (NICOP) SEDIN-GIZ, Omoware Akinropo, passion for business is one thing, but what is most important is to have the knowledge of the kind of business one is venturing into.
“You need to understand the basics of entrepreneurship. Mistake some people make is to say ‘I inherited this business from my father or mother. Therefore, entrepreneurship runs in our family’. Knowledge doesn’t run that way; the technicalities of business have to be learnt. And that is why fora like this are very important to appreciate different means to handle conflicts and resolve them,” Akinropo said.
The association president, Chiagozie Nwizu, reiterated the rationale for the Forum thus, “NAFBM is the same thing that obtains in other countries like the United States (Int’l Franchise Association), UK (British Franchise Association) and South Africa (Franchise Association of South Africa); these organizations play critical role in helping to educate, create the right standard, provide member-support and become like the go-to place for anyone that is interested in the industry.
“That is what we have started doing. In November last year when the Association was launched, it took up a responsibility that Nigeria should have proper Franchise Law. The Association is educating Nigerians on some policies or guidelines.
“So, the ADR forum was organised to create awareness and educate businesses and also a presentation of a whitepaper on the subject matter. So, business owners, especially in the franchise sector are taught how to integrate ADR in resolving disputes with the intent of fostering continued collaboration as against going to court where many cases are protracted.”
