Newsletter - Edition 63 - November 2024

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CSD-ABPI Discusses Mediation and Arbitration in Franchising

A technical and comprehensive debate featuring a distinguished group of experts in arbitration, mediation, and franchising marked the “Dialogue on Conflicts and Franchising” held on December 5 at ABPI’s headquarters in São Paulo. The event, organized by the Arbitration Chamber (CArb-ABPI) and Mediation Chamber (CMed-ABPI) of ABPI’s Dispute Resolution Center (CSD-ABPI), was conducted in a hybrid format, attracting significant in-person and online participation. It provided an open platform for discussion on arbitration and mediation issues, with a particular focus on strategic considerations and best practices in drafting arbitration clauses for franchise agreements.

In his opening remarks, Manoel J. Pereira dos Santos, President of CSD-ABPI and Director of CArb, welcomed attendees and highlighted recent updates to ABPI’s Arbitration and Mediation Chambers. He also announced an expansion in the roster of arbitrators: “We now have 11 new arbitrators specializing in franchising and expect to add another seven soon,” he stated.

The morning session, dedicated to arbitration, featured the panel “Suitability of Arbitration for Franchise Disputes: Sensitive Issues and the Strategic Appeal of this Choice,” moderated by Nathalia Mazzonetto, Deputy Director of CArb-ABPI. Panelists included Vera Monteiro de Barros, Chair of the Coordination Committee for Mediation, Conciliation, and Arbitration at the São Paulo Bar Association (OAB-SP) and the Brazilian Arbitration Committee, and Flávia Amaral, member of the Legal Studies Commission at the Brazilian Franchising Association (ABF).

Another morning panel, “Arbitration Clauses in Franchise Agreements: Drafting ‘Tricks’ and Best Practices,” was moderated by the CSD President. The speakers included Antonio Deccache, an attorney with a PhD in Commercial Law from USP, and Cândida Caffé, the Coordinator of ABPI’s Technology Transfer and Franchising Study Committee.

The afternoon session shifted focus to mediation, opening with a presentation by Karin Klempp Franco, Director of CMed, on “CMed’s Rules and Procedures and Their Suitability for Intellectual Property Disputes.” Karin shared insights into CMed’s activities since its establishment in 2015, noting that it has handled over 20 proceedings to date. “We are growing steadily, but it takes time to establish a mediation chamber. Our challenge is to promote CMed among ABPI members and others interested in this process,” she explained.

The event’s final panel, “Training for Mediators,” featured a presentation by Adolfo Braga Neto, President of the Council of the Brazilian Institute for Mediation and Arbitration (IMAB) and mediator for CMed. Adolfo shared his experience mediating franchise disputes, emphasizing how mediation and franchising are inherently connected. He highlighted the importance of maintaining relationships, restoring communication, ensuring the confidentiality of the mediation process, and its voluntary nature—all of which contribute to fostering a positive dynamic between franchisors and franchisees.

View some photos of the event.

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