What is the deadline for the three appraisers to complete the appraisal of a Bambu franchise during Bambu's right of first refusal?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Bambu and Franchisee will instruct the three appraisers to complete the appraisal within 30 days after the third
appraiser's appointment. If Bambu chooses not to exercise its right of first refusal, Franchisee shall be free to complete the transfer subject to compliance with Sections 17.2 and 17.3 under the terms and conditions of the proposal transfer.
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 and the parties cannot agree on a cash consideration, three independent appraisers will conduct an appraisal. Bambu will appoint one appraiser, the franchisee will appoint one, and those two appraisers will appoint the third.
The FDD states that Bambu and the franchisee will instruct the three appraisers to complete the appraisal within 30 days after the third appraiser's appointment. This means the appraisers have one month from the date the final appraiser is selected to determine the fair market value.
This appraisal process is initiated only if Bambu and the franchisee cannot agree on a reasonable cash equivalent for the franchise. The cost of each party's appraiser is borne by that party, while the fees and expenses of the third appraiser are shared equally between Bambu and the franchisee.