What is the deadline for Bambu and the franchisee to select their respective appraisers when Bambu exercises its right of first refusal?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
nduct one appraisal. Bambu will appoint one appraiser, Franchisee will appoint one appraiser and those appraisers will appoint the third appraiser. Bambu and Franchisee will select their respective appraisers within 15 days after Bambu notifies Franchisee that Bambu is exercising the right of first refusal under this Section 17.4. The two appraisers will appoint the third appraiser within 15 days after the date on which the last of the appointed appraisers is appointed.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if Bambu exercises its right of first refusal to purchase a franchise, both Bambu and the franchisee have a specific timeframe to appoint their appraisers. This process is initiated if the parties cannot agree on a cash consideration for the franchise.
Specifically, Bambu and the franchisee each have 15 days after Bambu notifies the franchisee that it is exercising its right of first refusal to select their respective appraisers. These two appraisers then have 15 days after the appointment of the last of the two to appoint a third appraiser.
Following the selection of all three appraisers, they are instructed to complete the appraisal within 30 days. This structured timeline ensures a relatively prompt and orderly appraisal process, should Bambu decide to exercise its right of first refusal and the initial negotiation of the purchase price fails.