Publication Date


Executive Summary

The number of lawsuits filed by aggrieved parties in franchising contracts indicates that conflicts are not always preventable. This report presents findings from data analyzed from New York State court records arising from franchising contracts from the year 1956 to 2016. Acknowledging the importance of Alternative Dispute Resolution (ADR) in mitigating the tension in franchisor-franchisee relationship, this Research Report recommends that franchising regulations should consider the mandatory inclusion of ADR clauses in franchising contracts. This move will provide a fair balance between the power of the franchisor and the interests of the franchisees.