In the event that Crave acquires the assets of the Franchised Business after termination, how is the appraised value of the assets determined?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
If the parties cannot agree on the fair market value within thirty (30) days of our exercise of this option, fair market value shall be determined by two (2) appraisers, with each party selecting one (1) appraiser, and the average of their determinations shall be binding. In the event of such appraisal, each party shall bear its own legal and other costs, and each shall pay one-half (1/2) of the appraisal fees.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if Crave exercises its option to purchase the assets of a franchised business after termination of the franchise agreement, the determination of fair market value depends on whether both parties can agree on the price. If Crave and the franchisee agree on the fair market value of the assets within thirty days of Crave's notice to purchase, that agreed-upon value will be used.
However, if an agreement cannot be reached within the specified timeframe, the fair market value will be determined by two appraisers. Each party, Crave and the franchisee, will select one appraiser. The average of the two appraisers' determinations will then be considered binding for establishing the fair market value.
The franchisee and Crave will each bear their own legal and other costs associated with the appraisal process, and they will each pay one-half of the appraisal fees. This process ensures an independent valuation of the assets in case of disagreement, providing a structured approach to resolving valuation disputes.