What happens if the determination of the purchase price for my All County business is delayed?
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.
- 23.6.6. Closing. The purchase price will be paid at the closing of the purchase, which will take place not later than ninety (90) days after determination of the purchase price.
We have the right to set off against the purchase price, and thereby reduce the purchase price by, any and all amounts you or your owners owe to us.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the closing of the purchase of your All County business will occur no later than 90 days after the purchase price is determined. This means that if there are delays in determining the purchase price, the closing date will be extended accordingly.
If All County and the franchisee cannot agree on the fair market value, three independent appraisers will conduct an appraisal. All County will appoint one appraiser, the franchisee will appoint one appraiser, and the two appraisers will appoint a 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 selected appraisers then have 15 days to appoint 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. The franchisee and All County will each bear the cost of their own appraiser and will equally share the fees and expenses of the third appraiser. All County also has the right to offset any amounts the franchisee owes to them against the purchase price, reducing the purchase price by that amount.