Who bears the cost of the appraisal for Body Brain Center?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
-fact to direct the Agencies to transfer the telephone numbers, domain names and listings to us if you fail or refuse to do so); and
- (xi) provide us with satisfactory evidence of your compliance with the above obligations within 30 days after the effective date of the termination, expiration or Transfer of this Agreement.
21.2 Right to Purchase Center and Assets
- (a) Generally. Upon the termination or expiration of this Agreement, we shall have the right, but not the obligation, to purchase your Body & Brain Center and/or its assets at fair market value as ascertained by an independent business appraiser. If we elect to exercise this option, the date of determination of the fair market value shall be the effective date of the termination or expiration of the Agreement (the "Appraisal Date"). We will notify you of the specific items that we wish to purchase (the "Acquired Assets").
- (b) Selecting Qualified Appraisers. You and we each shall appoint an appraiser with experience appraising businesses comparable to your Business in the United States (a "Qualified Appraiser"). This appointment of the appraisers shall be made within 30 days after the Appraisal Date by giving written notice to the other party of the name and address of the Qualified Appraiser. If either of us fails to appoint a Qualified Appraiser within the 30-day period, the appraisal shall be made by the sole Qualified Appraiser appointed within that period. If each of us shall have appointed a Qualified Appraiser
within the 30-day period, then within 30 days after that the two (2) Qualified Appraisers shall appoint a third (3rd) Qualified Appraiser.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
The 2025 Body Brain Center Franchise Disclosure Document outlines the process for determining the fair market value of a Body & Brain Center should the franchisor elect to purchase it upon termination or expiration of the franchise agreement. According to the FDD, both the franchisee and Body Brain Center will each appoint an appraiser. If these two appraisers are appointed, they will then appoint a third appraiser.
The FDD does not specify which party bears the cost of the appraisal. It states that both the franchisee and Body Brain Center each appoint an appraiser. If a third appraiser is needed, the American Arbitration Association will appoint them if the two parties cannot agree on an appraiser within 30 days.
Because the FDD does not specify who bears the cost of the appraisal, it would be prudent for a prospective franchisee to seek clarification from Body Brain Center regarding the financial responsibilities associated with the appraisal process. Understanding these costs is essential for making an informed decision about investing in a Body & Brain Center franchise.