. Launches Whitepaper on ADR
BY: Justice Godfry
In view of the fact that a franchise business model can be used for a wide range of businesses, it is usually advised to involve sector/industry experts in the resolution of conflicts arising from the franchise arrangements.
Where the issue is of a technical nature, an expert is best fitted to resolve the conflict and produce a binding decision.
However, the widely accepted proposition that it is more beneficial for parties to resolve their differences by negotiated agreement rather than contentious proceedings is one of the underlying principles for the adoption of Alternative Dispute Resolution (ADR) mechanisms.
These are suggested in a Whitepaper presented at a one-day ADR Awareness and Education for Businesses organised by Nigeria Association of Franchise Business Members (NAFMB) at Lagos Chamber of Commerce and Industries (LCCI), Victoria Island on Friday, May 17, 2019.
Speaking on the Whitepaper, the Partner, Jackson Etti & Edu and keynote speaker, Mr. Asamah Kadiri, advised current and budding business owners to elicit the services of professionals to regularise their entities and contracts, especially in franchise business sphere.
According to him, the ongoing relationship between the franchisor and franchisee gives rise to dispute on the basis of shared interest thus; there is need for conflict management.
To manage the conflict, Mr. Kadiri said, “ADR offer several advantages for the resolution of franchising disputes”, adding that “The experiences of parties using the ADR processes have revealed the fact that parties tend to arrive at settlements that are more creative, satisfactory and lasting than those imposed by the court”.
To the Senior Advisor, Trade Policy and Business Enabling Environment, Nigeria Competitive Project (NICOP) SEDIN-GIZ, Mr. Omoware Akinropo, passion for business is one thing, but what is most important is to have the knowledge of the kind of business one is venturing into.
“You need to understand the basics of entrepreneurship. Mistake some people make is to say ‘I inherited this business from my father or mother. Therefore, entrepreneurship runs in our family’. Knowledge doesn’t run that way; the technicalities of business have to be learnt. And that is why fora like this are very important to appreciate different means to handle conflicts and resolve them”.
The Association President, Mr. Chiagozie Nwizu, reiterated the rationale for the Forum thus, “NAFBM is the same thing that obtains in other countries like the United States (Int’l Franchise Association), UK (British Franchise Association) and South Africa (Franchise Association of South Africa); these organizations play critical role in helping to educate, create the right standard, provide member-support and become like the go-to place for anyone that is interested in the industry.
“That is what we have started doing. In November last year when the Association was launched, it took up a responsibility that Nigeria should have proper Franchise Law. The Association is educating Nigerians on some policies or guidelines.
“So, the Alternative Dispute Resolution (ADR) forum was organised to create awareness and educate businesses and also a presentation of a whitepaper on the subject matter. So, business owners, especially in the franchise sector are taught how to integrate ADR in resolving disputes with the intent of fostering continued collaboration as against going to court where many cases are protracted.
Also speaking, the Managing Director, Lagos Chamber of Commerce Internationial Arbitration Centre (LACIAC), Mrs. Funmi Iyayi, said that through the platform provided by NAFBM, businesses are better educated on how to properly contract and what ADR is all about.
“Generally, lawyers are the ones that advice the client when it comes to resolving disputes, but we want business owners to also appreciate what their options are in dispute resolutions outside the court.
“We noted the different dispute resolution processes that do not necessarily require the lawyer to initiate. The parties involved can decide to resolve amicably”, she said.
Mrs. Iyayi further said that LACIAC through her annually free mediation period offer free services to SMEs seeking to resolve conflicts with business partners.
“It is not just for LCCI members but for every business owner that needs such assistance. But if you register with LCCI you will have access to LACIAC services. We have a scale of fees for SMEs which in our opinion is affordable.
“So, entrepreneurs can approach us, and we enlist and contact them during mediation periods. We want business owners to know that conflict is not separate from business, you just need to manage it as you manage your business. That is why people contract, dispute is not ‘foreign’ to business”, she said.
NAFBM was set up be the support center for franchise business operators and service providers in Nigeria, with the goal to continuously improve value and opportunities for franchise stakeholders in Nigeria.
L-r: President, Nigeria Association of Franchise Business Members, Chiagozie Nwizu (left); Chief Executive, Lagos Chamber of Commerce International Arbitration Center LACIAC, Funmi Iyayi; Parner, Jackson Etti and Edu, Asamah Kadiri, and Senior Advisor, Trade Policy and Business Enabling Environment, Nigeria Competitive Project, Omoware Akinropo at the awareness and education for businesses on alternative dispute resolution (ARD), workshop in Lagos on 17/5/2019