Franchise mediation

Franchise mediation is a process in which a neutral mediator helps a franchisor and franchisee try to settle a dispute by agreement. The mediator does not decide the dispute. Many franchise agreements require mediation before arbitration or litigation, but BC's franchise legislation does not itself require mediation or provide a mediation mechanism.

How BC law treats it

Unlike some other provinces, BC's Franchises Act, SBC 2015, c 35 contains no mediation mechanism, so mediation is required only if the franchise agreement or a later agreement provides for it. The Franchises Regulation requires the disclosure document to describe any mediation, arbitration or other dispute resolution requirements in the franchise agreement (s. 4).

What it means for your business

Mediation is usually faster and cheaper than litigation and can help preserve an ongoing franchise relationship.

Risks and common mistakes

Missing a contractual step, such as a required mediation notice, can delay or complicate later proceedings.

For the full explanation, see our entry on Franchise litigation.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.