In a dispute regarding the value of assets in a proposed Bonchon franchise assignment, who pays for the independent appraiser?
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, in the event of a dispute over the value of assets or rights during a proposed franchise assignment, Bonchon and the franchisee will equally share the expense of a reputable independent appraiser selected by Bonchon. The appraiser's determination will be considered final and binding for both parties.
This arrangement ensures that neither party is solely burdened with the cost of resolving valuation disputes, promoting a fairer process. By equally sharing the expense, both Bonchon and the franchisee have a vested interest in ensuring the appraiser is reputable and the valuation is accurate.
This clause is important for prospective franchisees to understand, as it outlines the financial responsibility they will bear in case of a disagreement over asset valuation during a potential assignment. Franchisees should consider this potential cost when evaluating the overall financial implications of the franchise agreement.