How is the purchase price determined if a single appraiser is appointed for Bigfoot Forestry?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
If either party fails to appoint an appraiser within the 15-day period, then the appraiser appointed by the other party shall be deemed the single appraiser approved by the parties.
You must promptly provide any documents or information requested by the appraisers.
If a single appraiser is appointed, the purchase price shall be the Appraised Value established by the appraiser.
If three (3) appraisers are appointed, the purchase price shall be: (i) the Appraised Value agreed upon by at least two (2) of the appraisers; or (ii) the average of the two (2) Appraised Values that are closest to each other if none of the appraisers agree upon the Appraised Value.
Each party shall promptly pay 50% of the cost of the appraisal.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry FDD, if only one appraiser is appointed, the purchase price will be the appraised value established by that single appraiser. This situation arises if either party fails to appoint their own appraiser within a 15-day period, in which case the appraiser selected by the other party becomes the sole appraiser.
Both the franchisee and franchisor are responsible for providing any documents or information requested by the appraiser to aid in the valuation process. Each party is also responsible for paying 50% of the appraisal cost.
This appraisal process is used to determine the fair market value of the acquired assets. The final acquisition will be formalized through an Asset Purchase Agreement, which includes standard representations and warranties regarding the title and condition of the assets being transferred. Bigfoot Forestry has at least 60 days after the purchase price is established to close the transaction.