Who bears the cost of the appraisers during Bambu's right of first refusal?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If the parties cannot agree within a reasonable time on the cash consideration, such fair market value will be determined by three independent appraisers who collectively will conduct one appraisal.
Bambu will appoint one appraiser, Franchisee will appoint one appraiser and those appraisers will appoint the third appraiser.
Bambu and Franchisee will select their respective appraisers within 15 days after Bambu notifies Franchisee that Bambu is exercising the right of first refusal under this Section 17.4.
The two appraisers will appoint the third appraiser within 15 days after the date on which the last of the appointed appraisers is appointed.
Bambu and Franchisee will each bear the cost of their own appraiser and share equally the fees and expenses of the third appraiser.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, in the event that Bambu exercises its right of first refusal and the parties cannot agree on a cash consideration for the sale, three independent appraisers will determine the fair market value. Bambu will appoint one appraiser, the franchisee will appoint another, and those two appraisers will then appoint the third.
The costs associated with these appraisers are divided between Bambu and the franchisee. Each party is responsible for covering the expenses of their own appointed appraiser. The fees and expenses of the third appraiser, who is jointly selected, will be shared equally between Bambu and the franchisee.
This arrangement means that a franchisee considering a transfer needs to be prepared to pay for their own appraiser, as well as half the cost for the third appraiser. These costs can vary significantly depending on the location and expertise required, so it's important to factor this into the financial planning when contemplating a sale.