Running a large business is complex. We all have the best intentions, but disputes can occur. If disputes are not handled properly, they can escalate and be emotionally draining and expensive for all parties. A dispute need not be a big problem if both parties are fair and reasonable with each other and try to resolve it quickly so they can move on with positive business growth. Here are the steps in increasing order of severity:

1. Alert the Support Office with the issue with a phone call or email, and we will try to resolve it with you.
2. If it cannot be resolved, then it can be escalated to a formal notice of dispute. You must be specific about how you see it being resolved and, where possible, refer to any perceived breach in the franchise agreement.
3. We will discuss this with you on the phone or in person. After 3 weeks, if it hasn't been solved, either party can approach a mediator, and both parties may agree on this mediator. If parties don't agree on a mediator, the franchisor will usually tell the franchisee that they are contacting the Franchise Association of New Zealand to have a mediator appointed.
4. A mediator will contact both parties and try to resolve the issue. If a meeting is required, each party will have to contribute equally, and it is likely to cost between $1,000 to $2,000. Depending on where the mediation is held, one party may have to contribute to the other's travel costs.
5. If mediation is unsuccessful, parties can make a decision to involve lawyers or court action.

We recommend that if you are unhappy with us generally or being involved in the franchise, your goal should become to keep the business running as best you can, and sell the business to move on to something else. In doing that, you will preserve value, focus on positive improvement, and move on to something with other people. Involving lawyers generally costs large amounts, and all parties except the lawyers will lose.

You can not just enlist a lawyer the minute something goes wrong. You have signed an agreement that commits you to following the procedure outlined in the franchise agreement. So far, Kiwikrane has not had a dispute that it took as far as mediation. This is something we are proud of. We are not perfect franchisors, and neither are you likely to be a perfect franchisee, so we can all benefit from feedback from each other—we are open to your feedback. Yes, we've had the occasional issue with a franchisee, but we have always been able to resolve it in person before it escalated to involving mediators or lawyers in an adversarial situation.