Who bears the costs of the appraisers when Chicken Guy exercises its option to purchase?

According to Chicken Guy's 2025 Franchise Disclosure Document, when Chicken Guy exercises its option to purchase the assets of a franchise, the fees and costs of any appraisers involved in determining the fair market value are shared equally between Chicken Guy and the franchisee. This applies both when determining the initial purchase price and when determining the rental value of a franchised location owned by the franchisee if Chicken Guy chooses to lease it.

This arrangement means that a franchisee will be responsible for half of the appraiser's costs, which can potentially be a significant expense depending on the complexity of the appraisal and the number of appraisers involved. If the initial two appraisers' valuations differ by more than 10%, a third appraiser is selected, adding to the overall cost. The franchisee needs to be prepared for this potential expense when negotiating the sale of their assets or the lease terms of their property to Chicken Guy.

Sharing appraisal costs is a fairly common practice in franchise agreements to ensure fairness and neutrality in the valuation process. However, franchisees should still carefully review the specific terms in the Franchise Agreement regarding appraisal procedures and cost allocation to fully understand their financial obligations. It would be prudent for a prospective franchisee to inquire about typical appraisal costs in similar situations to better prepare for this potential expense.