Who is responsible for paying the appraisers involved in determining the Purchase Price of the Restaurant Assets if Dog Haus exercises its purchase option?

According to Dog Haus's 2025 Franchise Disclosure Document, if Dog Haus exercises its option to purchase the Restaurant Assets upon the expiration or termination of the franchise agreement, the cost of the appraisers is divided between Dog Haus and the franchisee. Specifically, each party is responsible for paying the appraiser they select. In addition, Dog Haus and the franchisee will each pay one-half of the fee charged by the third appraiser. They will also each cover one-half of all other costs related to determining the purchase price.

This arrangement means a prospective Dog Haus franchisee needs to budget for these potential appraisal costs. The exact amount will depend on the appraisers' fees and other related expenses at the time of the purchase option is exercised. It is common practice in franchise agreements for both parties to share the costs of determining fair market value in such scenarios, as it ensures a more balanced and fair process.

The Purchase Price will be determined by disregarding the appraiser's valuation that diverges the greatest from each of the other two (2) appraisers' valuations, and the arithmetic mean of the remaining two (2) appraisers' valuations shall be the Purchase Price. The determined Purchase Price is payable as Dog Haus and Franchisee mutually agree. If they are unable to so agree within ten (10) days after final determination of the Purchase Price, fifty percent (50%) of the Purchase Price shall be payable in cash and the remaining fifty percent (50%) of the Purchase Price shall be paid in eighty-four (84) equal monthly payments and shall bear interest at a rate equal to the greater of the prime rate of interest, as published by the Western Edition of the Wall Street Journal, plus three percent (3%), OR ten percent (10%) per annum, but in no event in excess of the maximum rate permitted by Applicable Law. Payment of the portion of the Purchase Price not paid in cash shall be secured by a security interest in the Restaurant Assets.