If Bft and the franchisee cannot agree on an appraiser, who appoints one?

According to Bft's 2025 Franchise Disclosure Document, if Bft chooses to purchase a franchisee's assets upon termination or expiration of the franchise agreement, and the parties cannot agree on the fair market value of those assets, an appraiser will be used to determine the value.

Specifically, if Bft and the franchisee cannot agree on the fair market value of the assets within 30 days of Bft's notice of intent to purchase, an experienced, professional, and impartial third-party appraiser will determine the value. This appraiser must be designated by Bft and acceptable to the franchisee. The determination made by the appraiser will be final and binding for both parties, and the cost of the appraisal will be split equally between Bft and the franchisee.

However, if Bft and the franchisee cannot agree on an appraiser, the American Arbitration Association will appoint one upon petition from either party. This ensures a neutral selection process if the parties reach an impasse. The appraisal will not consider goodwill or going concern value, focusing solely on the fair market value of the physical assets. This process is designed to provide a fair and objective valuation of the assets in the event of a franchise termination or expiration.