Dispute Resolution

WIPO Alternative Dispute Resolution (ADR) for Franchising and Licensing

1. Introduction to WIPO

The World Intellectual Property Organization (“WIPO”) is the United Nations agency that serves the world’s innovators and creators, ensuring that their ideas travel safely to the market and improve lives everywhere.

In franchising, intellectual property (“IP”) assets such as trademarks, logos, brand systems, operations manuals, proprietary recipes, software, design elements and know-how, can form the backbone of a brand and are central to ensuring consistent customer experiences across different outlets and markets.

Through the WIPO Arbitration and Mediation Center (“WIPO Center”), WIPO provides practical, business-friendly ways to resolve disputes involving franchising and licensing, both in Singapore and internationally.

2. Why ADR Matters for Franchising

Franchise relationships are long-term partnerships, and disputes can arise over a wide range of commercial and brand-related matters. Common examples include, among other things:

  • Failure to make payments;
  • Renewal or termination of franchise agreements;
  • Use of trade marks, trade secrets and proprietary manuals;
  • Business system changes, re-branding, or new operational requirements;
  • Transfers of franchise rights or ownership changes;
  • Post-termination obligations; and
  • Licensing, distribution and IP ownership disputes.

These disputes can involve many stakeholders beyond the franchisor and franchisee, for instance, licensors, master franchisees, distributors, manufacturers, IP owners, joint venture partners and retail operators.

Court litigation is often slow, public, expensive and disruptive to ongoing business. ADR provides a confidential, quicker and more flexible way to find solutions that maintain network stability and protect the brand.

3. WIPO ADR Methods for the Franchise Sector

(a) Mediation

A neutral mediator helps both sides discuss their issues, understand each other’s concerns and reach a mutually acceptable settlement.

Mediation is particularly suited for franchising and licensing because it is:

  • Confidential and business-focused;
  • Typically completed within weeks;
  • Allows creative and practical solutions tailored to the franchise relationship;
  • Helps preserve the ongoing business partnership; and
  • Can address both legal and operational issues (e.g., quality standards, marketing practices, and other non-legal issues).

(b) Arbitration (including Expedited Arbitration)

A private arbitrator issues a binding decision after hearing both sides.

Suitable when parties need a final, enforceable outcome but wish to avoid the publicity and rigidity of court proceedings.

(c) Expert Determination

A subject-matter expert decides on specific technical issues—for example, whether brand standards were met, whether accounting methods were appropriate, or whether certain materials qualify as proprietary IP.

4. Why WIPO ADR Is Well-Suited for Franchising

Specialised Expertise

The WIPO Center maintains a global list of mediators, arbitrators and experts worldwide with experience in franchising, licensing, IP and technology.

Parties may select neutrals from inside or outside the List.

Flexible and Adaptable Rules

The WIPO Mediation, Arbitration and Expert Determination Rules can be used for disputes that involve IP as well as broader commercial issues.

The process is designed to be efficient, neutral and supportive of ongoing business operations.

Efficient Enforcement

Arbitration awards issued under WIPO procedures can be enforceable internationally, which is helpful for franchisors and master franchisees operating across borders.

Procedural Guidance and Training

The WIPO Center provides:

Collaboration with Franchise Industry Bodies

WIPO works closely with stakeholders globally, including the Franchising and Licensing Association (Singapore). 

FLA Members enjoy a discount of 25% on the WIPO Administration Fee in WIPO-administered cases.

5. Examples of Franchising and Licensing Disputes Resolved Through WIPO ADR

Case Example of a Trademark Dispute in an F&B Joint Venture Agreement

Two Singapore food and beverage (“F&B”) businesses, originally part of a joint venture, became embroiled in a trademark disagreement after their relationship deteriorated. The issue centred on the use and ownership of several brand marks developed during the joint venture. With discussions stalled and the risk of litigation rising, both companies opted to use WIPO Mediation, which offered neutral case administration and funding support under the WIPO-ASEAN Mediation Programme (“AMP+”).

The mediation was conducted in person and completed within a single intensive session of about 15 hours. Before the mediation day, the mediator held short online meetings with each side to clarify key concerns and prepare a focused agenda — a step that significantly streamlined the process. On the mediation day, the session began with a brief joint meeting before moving to private discussions, which allowed each party to express concerns openly and test different settlement options in confidence. With the mediator’s guidance, the parties gradually moved towards practical commercial solutions. Shortly after midnight, both sides signed a full settlement agreement. What could have been a long, costly court battle was instead resolved in one day, with the parties regaining certainty over their branding and moving forward without further disruption to their businesses.

Case Example of a Patent License Mediation

Two Singapore companies — a modular-structure provider and an F&B infrastructure specialist — were locked in a patent dispute involving a licensed shelter system used for major events. After court proceedings had already begun, both sides agreed to mediate through the WIPO Center, benefitting from the AMP+ funding support.

Given the tight court deadline, the WIPO Center scheduled the mediation within days. The mediation meeting took one day, running from morning to early evening at the WIPO Singapore Office. The mediator opened with a joint session to clarify key commercial concerns and to build a cooperative tone. This was followed by private sessions, where each side could discuss their real interests, alternatives to settlement, and commercial constraints. With this information, the mediator helped the parties evaluate risks, test practical options, and focus only on what was needed to reach a workable deal.

By early afternoon, the parties had agreed on the core terms. With a template settlement agreement provided by the mediator, counsel refined the document, and both sides signed a full settlement agreement before 6pm. The mediation avoided months or years of litigation, enabled business-focused solutions beyond what a court could impose, and achieved resolution in a single, intensive session.

6. WIPO–ASEAN Mediation Programme (“AMP+”)

For franchisors and franchisees operating in the region, AMP+ offers subsidised mediation and access to mediators familiar with ASEAN business practices and cross-border franchise issues.

AMP+ is especially valuable for:

  • Singapore-based franchisors expanding overseas
  • ASEAN franchisees dealing with multi-jurisdiction operations
  • SMEs seeking a cost-effective, neutral and high-quality mediation service

Most mediations under IPOS–WIPO collaboration involve SMEs, many of which have franchise or licensing elements.

7. Selected Resources for the Franchise Sector

8. Contact Information

WIPO Arbitration and Mediation Center Singapore

Maxwell Chambers Suites
28 Maxwell Road #02-14
Singapore 069120
T +65 6225 2129
F +65 6225 3568

WIPO Arbitration and Mediation Center Geneva

Chemin des Colombettes 34
1211 Geneva 20
Switzerland
T +4122 338 8247 or 0800 888 549
F +4122 740 3700 or 0800 888 550

General queries: [email protected]