Who is responsible for the fees and costs of the neutral appraiser when Browns Chicken purchases the store?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Both Brown and the Franchisee shall select an appraiser, whose sole function would be to select a third, neutral appraiser, who would determine the fair market value of the Purchased Assets. The fees and costs of the neutral appraiser shall be shared equally by Brown and Franchisee.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, when Browns Chicken exercises its option to purchase a store, the cost of a neutral appraiser is shared equally between Browns Chicken and the franchisee.
Specifically, if Browns Chicken chooses to determine the fair market value of the Purchased Assets through a neutral appraiser, both Browns Chicken and the franchisee are responsible for selecting an appraiser. These two appraisers then select a third, neutral appraiser to determine the fair market value of the Purchased Assets.
This arrangement ensures that neither party bears the full financial burden of the appraisal, which is intended to provide an unbiased valuation of the assets being purchased. For a prospective franchisee, this means that if Browns Chicken decides to buy the store, the franchisee will be responsible for half of the neutral appraiser's fees, which could impact the overall financial outcome of the sale.