How are the fees and expenses of the third appraiser shared between All County and the franchisee?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
If we and you are unable to agree on the Business' fair market value, its fair market value will be determined by three (3) independent appraisers who collectively will conduct one (1) appraisal.
We will appoint one appraiser, you will appoint one appraiser and the two party appointed appraisers will appoint the third appraiser.
You and we agree to select our respective appraisers within fifteen (15) days after the date we determine that we are unable to agree on the Business' fair market value, and the two appraisers so chosen are obligated to appoint the third appraiser within fifteen (15) days after the date on which the last of the two party appointed appraisers was appointed.
You and we will bear the cost of our own appraisers and share equally the reasonable fees and expenses of the third appraiser chosen by the two party appointed appraisers.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, in the event that All County and the franchisee cannot agree on the fair market value of the business, a third appraiser will be appointed. The fees and expenses for this third appraiser are shared equally between All County and the franchisee. Each party is responsible for covering the costs of their own appointed appraiser.
This arrangement ensures that neither party bears the full financial burden of determining the business's fair market value through appraisal. By splitting the costs associated with the third appraiser, All County and the franchisee share the expense of resolving valuation disagreements.
This clause promotes a balanced approach to resolving disputes over business valuation, preventing either party from being financially disadvantaged during the appraisal process. Prospective franchisees should consider this provision as a protective measure in case disagreements arise during the term of the franchise agreement.