What are the qualifications required for an appraiser to be considered a 'Qualified Appraiser' for a Body Brain Center?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
s 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)
According to Body Brain Center's 2025 Franchise Disclosure Document, a 'Qualified Appraiser' must have experience appraising businesses comparable to a Body & Brain Center in the United States. This definition is relevant when the franchisor exercises its right to purchase a franchisee's Body & Brain Center upon termination or expiration of the franchise agreement.
Specifically, if Body Brain Center decides to purchase a franchise location, the fair market value of the center and its assets will be determined by an independent business appraiser. Both the franchisee and Body Brain Center are entitled to appoint their own appraiser. To qualify, these appraisers must have experience appraising businesses similar to Body & Brain Centers within the United States.
If the two appointed appraisers cannot agree on a fair market value, they are required to appoint a third appraiser. Should they fail to agree on a third appraiser, the American Arbitration Association will appoint one. However, Body Brain Center and the franchisee can jointly agree on a single appraiser, which would streamline the appraisal process. This ensures that the valuation is conducted by professionals with relevant expertise, protecting the interests of both parties involved in the transaction.