How is the purchase price determined if three appraisers are appointed for Bigfoot Forestry?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
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 three appraisers are appointed to determine the fair market value of the acquired assets, the purchase price will be determined in one of two ways. First, if at least two of the three appraisers agree on an appraised value, that agreed-upon value will be the purchase price.
However, if none of the three appraisers can agree on a single appraised value, then the purchase price will be calculated as the average of the two appraised values that are closest to each other. This method ensures that the final purchase price reflects a consensus, or at least the narrowest range of opinions, among the appraisers.
Both the franchisee and Bigfoot Forestry are responsible for promptly providing any documents or information requested by the appraisers during the valuation process. Each party is also responsible for paying 50% of the appraisal costs. This arrangement ensures a fair and transparent process for determining the value of the assets being acquired.