A process of dispute resolution for franchising under the mandatory industry code, the Franchising Code of Conduct (the Code), has been in effect since October 1998. A mediation procedure outlined in Part 4 of the Code constitutes the centrepiece of this process. This mediation procedure is a great step forward from the days when there was no formally recognised mechanism for resolving disputes in franchising. There are ways, however, in which the process and procedures can serve the parties more comprehensively. This paper identifies some aspects of the nature of franchising that may be significant in the design of a dispute system to meet the needs of this unique business arrangement.