What happens if either I or All County fail to appoint an appraiser within the specified timeframe?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
Based on the 2025 All County Franchise Disclosure Document, if All County and the franchisee are unable to agree on the fair market value of the business, it will be determined by three independent appraisers. All County will appoint one appraiser, and the franchisee will appoint another. The two appraisers selected by each party will then appoint a third appraiser.
The franchisee and All County each have 15 days to select their respective appraisers 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 after the last of the two party-appointed appraisers was appointed. The FDD does not specify the consequences if either party fails to appoint an appraiser within the allotted time.
Since the FDD does not outline the specific repercussions of failing to appoint an appraiser within the given timeframe, it is important for a prospective franchisee to seek clarification from All County regarding this matter. Understanding the potential consequences of such a failure is crucial for making informed decisions and protecting their interests during the franchise agreement.