In the Bonchon appraisal process, if the disagreement pertains to lease terms for the franchisee's owned location, what designation must each appraiser have?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If you own the Bonchon Restaurant Location, we may instead of purchasing the Restaurant Location require you to execute and deliver to us or our designee a lease for the Restaurant Location on commercially reasonable terms.
If the parties cannot agree on such terms within a reasonable time, we will designate an independent appraiser.
The appraiser's determination will be binding, and you must execute and deliver to us a lease for the Restaurant Location on the terms determined by the appraiser to be commercially reasonable.
We and you will each pay 50% of the fee charged by the independent appraiser.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee owns the restaurant location and Bonchon chooses to lease it rather than purchase it, disagreements about commercially reasonable lease terms will be resolved via an independent appraiser. Bonchon will designate this independent appraiser. The FDD does not specify any particular designation or qualifications that the appraiser must possess.
The appraiser's decision regarding the lease terms is binding on both Bonchon and the franchisee. The franchisee is then obligated to execute and deliver a lease to Bonchon based on the appraiser's determined terms. The costs associated with the independent appraiser are split evenly, with the franchisee and Bonchon each covering 50% of the appraiser's fee.
Since the FDD does not specify the appraiser's required qualifications, it is important for a prospective franchisee to seek clarification from Bonchon regarding the criteria used to select an appraiser. Understanding these criteria can help ensure that the chosen appraiser has the appropriate expertise to fairly assess the commercial reasonableness of the lease terms. This is a crucial step in protecting the franchisee's interests during the lease negotiation process.