What is the maximum timeframe for the Appraiser to submit the Appraisal Report to the franchisee and Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
We (or our assignee) will notify you of the identity of the Appraiser, who will make his determination and submit a written report ("Appraisal Report") to you and us (or our assignee) as soon as practicable, but in no event more than sixty (60) days after his appointment. You agree to promptly provide the Appraiser with such books and records as he or she may require, which you represent and warrant to be complete and accurate. In absence of such books and records or if the Appraiser is not satisfied with their completeness or accuracy, the Appraiser may make the determination of the Agreed Value on the basis of other sources and information he or she deems appropriate. The Appraiser's determination shall be final and binding on the parties hereto.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, when Checkers exercises its option to purchase a franchised restaurant upon termination or expiration of the franchise agreement, an appraiser is appointed to determine the value of the Purchased Assets. The Appraiser must submit a written Appraisal Report to both the franchisee and Checkers (or its assignee). The maximum timeframe allowed for the Appraiser to submit this report is sixty (60) days after their appointment.
This 60-day period provides a defined window for the valuation process, ensuring that both parties receive the appraisal report in a timely manner. The franchisee is obligated to provide the Appraiser with all necessary books and records promptly and accurately. Failure to do so allows the Appraiser to use alternative sources to determine the Agreed Value.
The determination made by the Appraiser is considered final and binding for both Checkers and the franchisee. This underscores the importance of the appraiser's role and the need for the franchisee to cooperate fully by providing accurate and complete information. Any disputes regarding the valuation are resolved through this appraisal process, making it a critical step in the purchase option.