Who bears the costs of the appraisers when determining the asset value for a Chicken Guy franchise?

According to the 2025 Chicken Guy Franchise Disclosure Document, the costs of the appraisers are shared equally between Chicken Guy and the franchisee. This situation arises if Chicken Guy exercises its option to purchase the assets of the franchise and both parties cannot agree on the fair market value of those assets within 30 days of the franchisee receiving notice of the intent to purchase.

In such cases, the fair market value is determined by two professionally certified appraisers, one selected by the franchisee and one by Chicken Guy. If these two appraisals differ by more than 10%, a third appraiser is selected by the first two to provide another valuation. The average of the two or three appraisals then becomes the conclusive purchase price.

This arrangement ensures that neither party bears the full financial burden of determining the asset value, promoting a more equitable process. It also incentivizes both Chicken Guy and the franchisee to negotiate in good faith to avoid incurring appraisal costs, which can be significant depending on the complexity of the valuation. Sharing the costs of the appraisal is a fairly common practice in franchising when determining fair market value during a buy-out or transfer scenario.