Successful franchisors participating in the NFMP
communicate to their franchisees about the program on an ongoing basis before any problems arise.
Larry Schauf was instrumental in starting and implementing the NFMP. "At the time it was done by a group of franchisors separate from any organization, because back then IFA included only franchisors, and we wanted to make sure it was seen as a good faith effort by one side of the issue to do it right and fair."
Schauf reports the NFMP has enjoyed tremendous results.
The National Franchise Mediation Program (NFMP) was created in 1993 by a group of International Franchise Association franchisor members who wanted to provide an alternative dispute resolution mechanism designed specifically for the franchise community and dedicated to resolving franchise disputes and preserving franchise relationships.
The NFMP was founded in 1993 and has served as a bulwark for franchisors and franchisees to resolve their disagreements through mediation rather than litigation.
In particular, the International Franchise Association (IFA) has become a major supporter of the NFMP, which is the only mediation program in the United States developed within and through the franchise community.
NFMP is requesting your support and endorsement of the program.
A: The NFMP
is a highly structured mediation program designed specifically for franchise companies.
No, the NFMP
was formed in 1993 by some of the most influential members of the franchising community, including PepsiCo, McDonald's and Holiday Inn.
The real-world effect of the NFMP is that franchise disputes are mediated.
Of the approximately 150 franchise disputes that have been formally submitted to the NFMP process, almost 90 percent have been resolved amicably.
The NFMP is governed by a steering committee that is made up of equal numbers of franchisor and franchisee' representatives.