What is the All County franchisee's obligation regarding the selection of their appraiser for the business valuation?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 23.6.5. Appraisal. If we and you are unable to agree on the Business' fair market value, its fair market value will be determined by three (3) independent appraisers who collectively will conduct one (1) appraisal.
We will appoint one appraiser, you will appoint one appraiser and the two party appointed appraisers will appoint the third appraiser.
You and we agree to select our respective appraisers within fifteen (15) days after the date we determine that we are unable to agree on the Business' fair market value, and the two appraisers so chosen are obligated to appoint the third appraiser within fifteen (15) days after the date on which the last of the two party appointed appraisers was appointed.
You and we will bear the cost of our own appraisers and share equally the reasonable fees and expenses of the third appraiser chosen by the two party appointed appraisers.
You and we will take reasonable actions to cause the appraisers to complete their appraisal within thirty (30) days after the third appraiser's appointment.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, if All County and the franchisee cannot agree on the fair market value of the business, the fair market value will be determined by three independent appraisers who will collectively conduct one appraisal.
The All County franchisee will appoint one appraiser, and All County will appoint another. The two appraisers selected by each party will then appoint the third appraiser. The franchisee and All County must select their respective appraisers within 15 days after determining that they cannot agree on the business's fair market value. The two party-appointed appraisers then have 15 days to appoint the third appraiser.
The franchisee and All County will each bear the cost of their own appraiser. They will share equally the reasonable fees and expenses of the third appraiser. Both parties are expected to take reasonable actions to ensure the appraisers complete their appraisal within 30 days after the third appraiser's appointment.