The reasons are varied, and can range from a franchisee feeling they are not making the income they expected, or the support they were promised, to the franchisor feeling the franchisee is not pulling his or weight.

While the knee jerk reaction for some will be to contact their solicitor, a more sensible, and generally more satisfactory move, is to try and resolve the dispute through mediation.

The British Franchise Association has recognised the value of mediation and has established a specific mediation service for its members, which is underpinned by the involvement of a panel of qualified mediators who are also recognised, franchise experts.

BFA accreditation manager Catherine Jackson says: “We have a real enthusiasm for mediation as a means of dispute resolution. It is a positive process and uniquely suited to franchise disputes as it allows the parties to recover and restore their partnership.”

The mediator is an independent third party who tries to help and facilitate negotiations between the two parties in dispute. Any settlement reached by the parties is recorded in writing and will be final and binding. The settlement can be enforced but not in the same way as an arbitrator’s award, and the parties can walk away from the mediation at any stage.

Martin Plowman, of Norwich-based Mediation 1st, has worked as a mediator on a number of cases involving franchises. He says: “It does work. Around eight out of 10 mediations settle. It is cheaper, quicker and less uncertain than litigation, and it may be an opportunity to deal with a dispute before the problem has got out of hand.”

A key motive for going to mediation is to keep a franchisee, who the franchisor has spent time and money recruiting, on board.

“Recruitment is one of the biggest overheads for most franchisors,” says Martin. “It is easy to conclude that because franchisor and franchisee are in dispute a “mistake” must have been made in recruitment. But if the Franchisee was the right person when recruited they may still be.”

The dispute may show that they are strong characters, determined, articulate, and persistent, but if the dispute itself can be dealt with, these qualities –strength of character, determination, being articulate, persistence – don’t necessarily make them a bad business proposition or a bad franchisee. Putting the parties at the centre of the process can promote settlement in that few people actually want to go to court.

They have their say, at the initial joint meeting directly to the other party, or to the mediator in private meetings. Someone whose grievance has been heard may feel less of a compulsion to `have their day in court`. And the parties can talk directly to each other - the mediation can be the first time they do this since the dispute began.

A skilful mediator can use the fact that the power to settle is in the parties’ hands to create an environment where settlement becomes a joint project, perhaps by giving the parties some aspect of the `deal` to work on jointly.

Plowman says: “The dynamic of the negotiation can change to the extent that parties who may have perceived settling as a climb down involving loss of face, come to see failing to reach a solution as a bigger loss of face.”

Catherine Jackson adds: “Our panel of specialist mediators have a real and practical understanding of the issues facing franchisees and franchisors. This allows them to make a very positive contribution in the mediation process and is a true benefit for BFA members.”

For more information on the BFA and its services, visit the website at www.british-franchise.org.uk