What instruction regarding goodwill is given to the Qualified Appraisers for Body Brain Center?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
You must furnish to the Qualified Appraisers a copy of your current financial statements, as well as your financial statements for the prior three (3) years (or the period of time that you have operated your Business, if less than three (3) years), together with the work papers and other financial information or other documents or information that the Qualified Appraisers may request.
The Qualified Appraisers shall take into account the other information and factors that they deem relevant, but the Qualified Appraisers shall be instructed that there shall be no consideration of goodwill in the determination of fair market value.
- (d) Appraisal Process.
Within 60 days after the appointment of the third Qualified Appraiser, the three (3) Qualified Appraisers shall appraise the Appraised Assets at fair market value without taking into account any value for goodwill (the "Appraised Value").
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, when determining the fair market value of a Body Brain Center during a purchase by the franchisor, Qualified Appraisers are specifically instructed not to consider goodwill.
To facilitate the appraisal process, franchisees must provide the Qualified Appraisers with their current financial statements, as well as statements from the prior three years (or for the duration of their business operation, if less than three years). Franchisees must also provide any work papers, financial information, or other documents requested by the appraisers.
Within 60 days of appointing the third appraiser, the appraisers must evaluate the assets at fair market value, explicitly excluding any value attributed to goodwill. The FDD outlines procedures for how the Appraised Value is determined based on the agreement (or disagreement) of the three appraisers. This process ensures that the fair market value is assessed without inflating it due to the brand's reputation or customer base.