Mediation is a highly effective method for resolving disputes, offering parties the opportunity to reach amicable settlements within a reasonable timeframe. It is recognized as a collaborative and voluntary approach to dispute resolution, allowing parties to retain control over the settlement process through cooperation. This cooperation occurs between the disputing parties on one hand, and the mediator from the Franchise and Trademark Association “Tagmoa” on the other. The mediator’s role is to manage the dispute professionally, facilitate constructive dialogue, and ensure the preservation of commercial relationships, contributing to a stable economic environment free from prolonged conflicts.
The 2024 Mediation Rules (the Rules) were issued by the Franchise and Trademark Association “Tagmoa” – United Arab Emirates, and officially came into effect in January 2025, following the adoption of the association’s bylaws. These bylaws provide a robust legal framework, which, in conjunction with these Rules, outline the standards that franchise companies must adhere to when engaging in mediation through “Tagmoa.” These standards are guided by the preliminary provisions stated herein, as well as the following key elements:
- The franchise agreement signed between the disputing parties (franchisor and franchisee).
- Relevant operational manuals (to be specified).
- The Non-Disclosure Agreement (to be specified).
- The legal framework established within the association’s bylaws, encompassing the overarching laws governing relationships between commercial entities.
- The Code of Professional Conduct.
These provisions ensure a structured, transparent, and fair mediation process, fostering trust and efficiency in dispute resolution within the franchise ecosystem.
Arbitration is a method of resolving disputes outside of the traditional court system. In arbitration, an impartial third party, known as an arbitrator, is appointed to hear evidence and arguments from the involved parties before making a binding decision. This process can be either voluntary or mandatory, depending on the context. Key features of arbitration include:
- Neutrality: Arbitrators are expected to remain neutral and unbiased towards all parties involved in the dispute.
- Confidentiality: Arbitration proceedings are generally private, keeping sensitive information and details out of the public domain.
- Flexibility: Arbitration can be tailored to the specific needs and preferences of the parties, such as scheduling and location.
- Enforceability: Arbitration awards are legally binding and enforceable in courts, with limited grounds for appeal.
Arbitration can offer several advantages over litigation, including faster resolution, cost-effectiveness, privacy, and expert decision-making. It is commonly used in commercial and international disputes but can be applied in various contexts, such as employment, family, and intellectual property disputes.
A meaningful collaboration between “Tagmoa” and the Dubai International Arbitration Centre (DIAC) to streamline the resolution of disputes through DIAC.
The new DIAC ARBITRATION RULES 2022 came into effect as of 21 of March 2022 .