Typically executed during the “good times”, they have proved to be an onerous burden on struggling units and when cash flow is tight and a business needs to be lean, the ability to renegotiate these leases is often the ‘make or break’ factor.
For restaurants intending to implement an arbitration policy, there are many steps to take prior to an actual arbitration. These range from peer reviews to an ‘open door policy’ where employers and employees can negotiate without an arbitrator present. Whatever a company chooses to do, of primary importance is ensuring the policy is clearly defined and understood, with the intention always being to resolve the issue prior to arbitration but knowing that arbitration itself is a practical and cost effective alternative to entering the court room.
