For Augusta Lawn Care, what is the highest priority given to in the fair value hierarchy?

According to Augusta Lawn Care's 2025 Franchise Disclosure Document, when purchasing the franchisee's business assets upon termination of the franchise agreement, the equipment, supplies, and inventory will be valued at the lower of depreciated value or fair market value. Other tangible personal property will be valued at depreciated value calculated on the straight-line method over a five-year life, less any liens or encumbrances.

If Augusta Lawn Care decides to purchase the assets, they will operate the business at their expense while the purchase price is being determined. The FDD specifies a process for determining the purchase price, including options for independent appraisal if the parties cannot agree on a price within a specified option period. This appraisal process includes the possibility of extending the option period to allow for appraisal by an independent appraiser who is mutually satisfactory to both parties. If an appraiser cannot be agreed upon, each party will appoint an appraiser, and those two appraisers will agree on a third appraiser to determine the price.

Augusta Lawn Care has the right to exclude any assets that are not reasonably necessary for the operation of the business or that do not meet Augusta Lawn Care's current standards. The purchase price will reflect these exclusions. Augusta Lawn Care also has the right to offset any amounts owed by the franchisee or their related parties against the purchase price. The purchase price is due no later than ninety days after its determination, and the franchisee must deliver clear title to the assets, assign licenses and permits, transfer the leasehold interest, and provide a release agreement.