Compliance & disputes

Conciliation

A dispute-resolution process where an independent conciliator helps the parties reach agreement and can suggest possible solutions, a more active role than a mediator.

What it means

Conciliation is one of the resolution options under the Code's dispute process. Like mediation, it is confidential and aims for a negotiated outcome, but the conciliator takes a more hands-on role, offering views and proposing options to bridge the gap.

It sits between mediation, where the third party mainly facilitates, and arbitration, where a decision is imposed. Conciliation can suit disputes where the parties want expert steering toward a settlement without a binding ruling.

In practice

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) can help arrange conciliation. Go in with a clear sense of your acceptable outcomes, the conciliator will test both sides and float compromises.

A real example

A territory dispute goes to conciliation; the conciliator proposes a boundary adjustment plus a marketing credit, a solution neither party had put forward, and both accept.

Conciliation, FAQs

What is the difference between mediation and conciliation?

In mediation the third party mainly facilitates discussion; in conciliation the conciliator takes a more active role, offering views and suggesting solutions. Both are confidential and non-binding unless the parties agree otherwise.

Who arranges conciliation for a franchising dispute?

The ASBFEO can help appoint a conciliator or mediator. State Small Business Commissioners also offer low-cost dispute services.

See the full franchise glossary, the Fee Index or our buyer guides.