This document discusses mediating franchise disputes. It begins by asking where the discussion is headed and why mediation is important, as it is non-transactional, often involves material issues, and is driven by more than just the two parties. It then notes how franchise mediations can differ from other disputes in areas like system standards, trademark issues, the legal framework, and the involvement of third parties. Common claims in franchise mediations are then outlined for both franchisees and franchisors. Potential drawbacks of franchise mediation are acknowledged. The document encourages identifying interests, options, and alternatives. It provides tips for preparing for and getting the most out of a mediation process, noting the potential outcomes of full or partial settlement or

1. MediatingFranchise
Disputes:
What, Why, How, and
More
August 15, 2023
DBA Franchise and
Distribution Law Section

2. Whereare
weheaded?
– You
– Me
– Today’s Topic

3. Why?
– You have to.
– You want to.
– …and you’re right
on both fronts.

4. Isitdifferent?
– Occasionally, no.
– But…
– it’s nontransactional,
– it’s (often) material,
– …and it’s driven by more.

5. Whatelseis
different?
– System Standards
– Trademark Issues
– External Legal
Framework
– Third Parties ≠
Strangers

6. – By Franchisees
– Territory
– Training and
Support
– Marketing Fund
– Termination
– Transfer /
Assignment
– Good Faith
– Fraud and
Misrepresentation
CommonClaims
– By Franchisors
– System Standards
– Reporting
– Targets and Payments
– Termination
– Confidentiality / Trade
Secrets
– Noncompetition Covenants

7. Franchise
Mediation
Drawbacks

8. Whatdo
youwant?
– Your Position
– Your Interests
– Your Options

9. – The Calendar
– Neutral Ground
– Confidentiality
– Distance
– Evaluation
Usetheprocess.

10. Howdoyou
getthere?
– Your Call
– Your Brief
– Your Group
– Your “ATNAs”
– Your (Other) Alternatives
– The Coach Bannister
Rule

11. Whatdoessuccess
looklike?
– Settlement
– Settle Halfway
– Manage the Problem
– Define It
– Cabin It
– Fast Track It
– Acceptance Time:
Start the Clock

12. – Mass Actions
– Arbitration vs.
Litigation
– Equitable Relief
Lagniappe

13. E M A I L
O F F I C E
A D D R E S S
E D U C A T I O N
J.D., 1990
Duke University School of
Law
B.A., 1986
Mississippi State University
John DeGroote is a former global company general counsel now serving as an
arbitrator and mediator in complex commercial, technology, and business matters
involving parties and interests around the country and beyond. He believes early
case assessment, proactive matter management, and the right questions – at the
right time – drive results.
Hickory Street Annex
501 S 2nd Avenue, Suite A-
700
Dallas, Texas 75226
214.288.6864
john@degrootepartners.com
• Serves as mediator and arbitrator in significant business
disputes.
• Serves as a privately-appointed independent director or
corporate officer in select situations.
• Previously served as the Chief Litigation Counsel to KPMG
Consulting / BearingPoint; ultimately led a team of over 40
in-house lawyers in 10 countries as the Company's Executive
Vice President and Chief Legal Officer.
• Past Chair, State Bar of Texas ADR Section, Dallas Bar
Association ADR Section, and Duke Law Alumni Association
Board of Directors.
• Received mediation training from Pepperdine University's
Straus Institute for Dispute Resolution in 2005.
• Lives in Dallas with his wife, his sons that haven't left for
college yet, and his wife's two rescue labs.
John
DeGroote
Attorney-Mediator
DeGrootePartners,LLC