How is a dispute regarding the value of assets or consideration determined if Bonchon exercises its right of first refusal?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Any dispute regarding the value of all or any part of the assets or rights proposed to be assigned and/or the consideration proposed to be paid or payable to you or any third party in connection with the proposed assignment shall be determined by a reputable independent appraiser we select, and you and we equally share the expense of, whose determination will be final and binding on us.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a dispute arises over the value of assets or the consideration to be paid in connection with Bonchon exercising its right of first refusal, a resolution process is defined. A reputable, independent appraiser, selected by Bonchon, will determine the value.
The cost of this independent appraisal is equally shared between Bonchon and the franchisee. The determination made by the appraiser is considered final and binding on both parties, ensuring an objective valuation.
This process provides a structured approach to resolving valuation disagreements, which can be beneficial for prospective franchisees. By using an independent appraiser, the process aims to ensure fairness and prevent either party from unilaterally dictating the value of the assets or consideration. Franchisees should be aware of this process as it could impact the financial outcome of a potential sale or transfer of their franchise.