What financial information must a Body Brain Center franchisee furnish to the Qualified Appraisers?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, in the event that Body Brain Center elects to purchase a franchisee's Body & Brain Center and/or its assets upon termination or expiration of the franchise agreement, the fair market value will be determined by independent business appraisers.
The FDD states that Body Brain Center and the franchisee will each appoint an appraiser with experience appraising businesses comparable to the franchisee's Body & Brain Center in the United States. These appraisers are referred to as "Qualified Appraisers." The appointment of these appraisers must occur within 30 days after the Appraisal Date, which is the effective date of the termination or expiration of the agreement. The appointment is made by providing written notice to the other party with the name and address of the chosen Qualified Appraiser.
The excerpt specifies the process for selecting appraisers, including the appointment of a third appraiser if the initial two cannot agree. However, the FDD excerpt does not specify what financial information the Body Brain Center franchisee must furnish to the Qualified Appraisers. To fully understand this process, a prospective franchisee should ask Body Brain Center for a comprehensive list of the financial documents and data required for the appraisal process.