Can the parties jointly approve a single appraiser for the Chop5 Salad Kitchen appraisal process?

According to the 2024 Chop5 Salad Kitchen Franchise Disclosure Document, both parties involved in the appraisal process can jointly approve a single appraiser. This applies when Chop5 Salad Kitchen exercises its option to purchase the franchisee's Restaurant and/or its assets at fair market value upon termination or expiration of the Franchise Agreement.

Typically, the appraisal process involves each party (Chop5 Salad Kitchen and the franchisee) appointing their own appraiser within 30 days of the agreement's termination or expiration. If both parties appoint appraisers, these two appraisers then have 30 days to agree on a third appraiser. If they cannot agree, the American Arbitration Association will appoint the third appraiser. However, the clause explicitly states that this standard procedure does not prevent both parties from agreeing on a single appraiser from the outset.

For a prospective Chop5 Salad Kitchen franchisee, this means there is flexibility in the appraisal process. Agreeing on a single appraiser could potentially save time and reduce costs associated with the appraisal. However, it would require mutual agreement and trust between the franchisee and Chop5 Salad Kitchen to select an appraiser who is perceived as fair and unbiased by both parties. If the parties do not agree on a single appraiser, the standard procedure of each party selecting their own appraiser, and those two appraisers selecting a third, will be followed.