Who is responsible for paying the expenses of the independent appraiser in a Floyds 99 franchise transfer dispute?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
If the parties cannot agree within a reasonable time on the cash consideration, an independent appraiser shall be designated by Franchisor, whose determination will be binding upon the parties.
All expenses of the appraiser shall be paid for equally between Franchisor and Developer; and
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, in the event that the franchisor exercises its right of first refusal and the parties cannot agree on a cash equivalent for the business, an independent appraiser will be designated by Floyds 99.
The expenses of this independent appraiser are to be split equally between Floyds 99 and the developer (franchisee). This means that a prospective franchisee needs to be prepared to cover half of the appraiser's fees should a dispute arise during a potential transfer.
This arrangement is fairly typical in franchising, as it ensures that both parties have a vested interest in keeping appraisal costs reasonable. It also prevents either party from unilaterally driving up the costs of the appraisal process. A prospective Floyds 99 franchisee should consider this potential expense when evaluating the financial implications of buying or selling a franchise.