What must each Qualified Appraiser do before issuing a report for Body Brain Center?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Before the issuance of a report by any Qualified Appraiser, each Qualified Appraiser shall advise the others of the value that will appear in his or her report to ensure that the determination of value made by any Qualified Appraiser is made with knowledge of the values determined by the other Qualified Appraisers.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, before a Qualified Appraiser issues a report regarding the fair market value of a Body & Brain Center, they must advise the other appraisers of the value that will appear in their report. This ensures that each appraiser is aware of the others' valuations before finalizing their own assessment.
This requirement is part of the appraisal process initiated if Body Brain Center elects to purchase a franchisee's center and/or its assets upon termination or expiration of the franchise agreement. The goal is to determine a fair market value for the business without considering goodwill.
This process involves both the franchisee and Body Brain Center each appointing an appraiser. If they cannot agree on a single appraiser, a third appraiser is selected, potentially through the American Arbitration Association. The sharing of values before the final report aims to promote a more informed and potentially more aligned valuation, which could reduce discrepancies and disputes in determining the final Appraised Value.