How is the cost of the appraisal shared between the parties for Body Brain Center?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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. If the two (2) Qualified Appraisers fail to agree on the appointment of a third (3rd) Qualified Appraiser within the 30-day period, then a third (3rd) Qualified Appraiser shall be appointed by the American Arbitration Association (acting through its office located closest to our corporate headquarters) as promptly as possible after that, upon application by either us or you. Nothing in this provision shall prohibit us and you from jointly approving a single appraiser, nor shall it obligate us or you to do so.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the cost of the appraisal for a Body & Brain Center is determined by the process of selecting the appraiser. According to the agreement, both Body Brain Center and the franchisee each appoint their own appraiser. If both parties appoint an appraiser, the two appraisers then select a third appraiser. If they cannot agree on a third appraiser, the American Arbitration Association will appoint one.
The FDD does not specify which party is responsible for paying the appraiser they appoint. It also does not specify who is responsible for paying the third appraiser.
Prospective franchisees should clarify with Body Brain Center who is responsible for paying the appraiser they appoint and the third appraiser to fully understand the financial implications of this section of the franchise agreement.