What is the deadline for me and Creative World School to select our respective appraisers?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
(d) Appraisal. If we and you are unable to agree on the School's fair market value, its fair market value will be determined by 3 independent appraisers who collectively will conduct 1 appraisal. We will appoint one appraiser, you will appoint one appraiser and the two party-appointed appraisers will appoint the third appraiser. You and we agree to select our respective appraisers within 15 days after we notify you that we are exercising our option to purchase the School, and the two appraisers so chosen are obligated to appoint the third appraiser within 15 days after the date on which the last of the two party-appointed appraisers was appointed. You and we will bear the cost of our own appraisers and share equally the fees and expenses of the third appraiser chosen by the two party-appointed appraisers. The appraisers are obligated to complete their appraisal within 30 days after the third appraiser's appointment.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, if you and Creative World School cannot agree on the fair market value of the school in the event that Creative World School exercises its option to purchase the school, the fair market value will be determined by three independent appraisers. You and Creative World School each appoint one appraiser, and the two party-appointed appraisers will then appoint the third appraiser.
The deadline for you and Creative World School to select your respective appraisers is within 15 days after Creative World School notifies you that it is exercising its option to purchase the school. After the first two appraisers are chosen, they have 15 days after the last of the two party-appointed appraisers was appointed to choose the third appraiser.
The three appraisers are then obligated to complete their appraisal within 30 days after the third appraiser's appointment. You and Creative World School will each bear the cost of your own appraiser, and you will share equally the fees and expenses of the third appraiser.