Who is responsible for paying the fee charged by the independent appraiser if one is designated to determine fair market value for Bhc assets?

According to Bhc's 2025 Franchise Disclosure Document, in the event that an independent appraiser is designated to determine the fair market value of assets, the responsibility for covering the appraiser's fee is divided equally. The Master Franchisee and Bhc each bear 50% of the total fee charged by the independent appraiser. The determination made by the appraiser is considered binding for both parties.

This arrangement ensures that neither party is solely burdened with the cost of the appraisal, which can be a significant expense. By splitting the cost, Bhc and the Master Franchisee share the financial responsibility, promoting a more equitable process. This also underscores the importance of the appraiser's role, as their valuation is the final word, binding on both parties.

For a prospective Master Franchisee, this means that when determining the financial implications of acquiring or transferring assets, they must factor in the potential cost of an independent appraisal and allocate funds to cover their 50% share. Understanding this financial responsibility is crucial for budgeting and financial planning within the franchise agreement. This arrangement is fairly typical in franchise agreements to ensure fairness and prevent disputes over valuation.