Who is responsible for paying the appraiser's fees in the Carvel Appraisal Process?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
If we cannot agree within a reasonable time on the equivalent cash value, the equivalent cash value will be determined by three independent appraisers using the following appraisal process (the "Appraisal Process"): (i) you will designate one appraiser and we will designate one appraiser, and the two appraisers that you and we designate will select a third appraiser, (ii) the majority determination of the three appraisers will be binding, (iii) each party will pay the appraiser's fee for the appraiser designated by that party, and (iv) you and we will each pay 50% of the third appraiser's fee.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the costs for appraisers during the Appraisal Process are divided between Carvel and the franchisee. If Carvel decides to purchase the franchise back from the franchisee, an appraisal process may be initiated to determine the cash value of the business.
Specifically, the franchisee is responsible for paying the appraiser's fee for the appraiser they designate. Carvel, similarly, will cover the costs for their designated appraiser.
In the event that a third appraiser is needed, the fees associated with the third appraiser are split, with the franchisee and Carvel each paying 50% of the appraiser's fee. The majority determination of the three appraisers will be binding.