What qualifications must the 'Appraiser' have to value a Checkers restaurant?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fair Market Value, the Appraised Asset Value and/or Net Book Value will be determined by a member of a nationally recognized accounting firm (other than a firm which conducts audits of our financial statements) selected by us who has experience in the valuation of restaurant businesses (the "Appraiser"). 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's 2025 Franchise Disclosure Document, the 'Appraiser' who determines the Fair Market Value, Appraised Asset Value, and/or Net Book Value of a Checkers restaurant must meet specific qualifications. Checkers selects the appraiser, who must be a member of a nationally recognized accounting firm. Importantly, this firm cannot be the same one that conducts audits of Checkers's financial statements, ensuring impartiality.
In addition to being part of a nationally recognized accounting firm, the appraiser must have experience in valuing restaurant businesses. This requirement ensures that the individual assessing the restaurant's worth has a solid understanding of the industry-specific factors that influence its value.
Checkers (or its assignee) will inform the franchisee of the appraiser's identity. The appraiser is then responsible for making a determination and submitting a written report (the 'Appraisal Report') to both Checkers and the franchisee (or its assignee). This report must be completed as soon as possible, but no later than 60 days after the appraiser's appointment. The appraiser's determination is considered final and binding for both parties.