What is the deadline for Azal Coffee and the franchisee to select their respective independent appraisers after the event triggering the appraisal?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
If the parties are not able to agree on an independent appraiser within fifteen (15) days of the event triggering the appraisal, each party will select an independent appraiser qualified or certified to make the appraisal. The independent appraisers chosen will then select a third independent appraiser. The third independent appraiser will determine the applicable value and his or her determination will be binding on the parties. You and we agree to select our respective appraisers within fifteen (15) days after the event triggering the appraisal and the two appraisers 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 is appointed. You and we will bear the cost of our own appraisers and share equally the reasonable fees and expenses of the third appraiser. The parties will take reasonable actions to cause the appraiser to complete his or her appraisal within thirty (30) days after the third appraiser's appointment.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, if an appraisal is required to determine value and the parties cannot agree on an appraiser, both Azal Coffee and the franchisee must select their own independent appraiser within fifteen days of the event that triggered the appraisal. These two appraisers will then select a third independent appraiser to determine the value, which will be binding.
This appraisal process is triggered by events described in Sections 14.2 and 16.3 of the franchise agreement. The franchisee and Azal Coffee each bear the cost of their own appraiser, and they share the costs equally for the third appraiser.
Following the selection of the third appraiser, all parties involved are expected to take reasonable actions to ensure the appraisal is completed within thirty days. This structured approach ensures a fair and timely valuation process in situations where an independent assessment is needed, such as during a transfer or termination event.