What is the deadline for Crisp & Green to provide an Appraisal Notice after termination or expiration of the Franchise Agreement?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
16.04 Option to Purchase Franchised Restaurant.
- (a) Upon termination or expiration (without renewal) of this Agreement, we have the right, exercisable by giving notice thereof ("Appraisal Notice") within ten (10) days after the date of such termination or expiration, to require that a determination be made of the "Agreed Value" (as defined below) of all the personal property used in the Franchised Restaurant which you own, including inventory of non-perishable products, materials, supplies, furniture, equipment, signs, but excluding any cash and short-term investments and any items not meeting our specifications for Restaurants (the "Purchased Assets"). Upon such notice, you may not sell or remove any of the personal property of the Franchised Restaurant from the Premises and must give us, our designated agents and the "Appraiser" (as defined below) full access to the Franchised Restaurant and all of your books and records at any time during customary business hours in order to conduct inventories and determine the purchase price for the Purchased Assets.
- (b) The Agreed Value shall be determined by consultation between you and us. If you and we are unable to agree on the Agreed Value of the Purchased Assets within fifteen (15) days after the Appraisal Notice, then the Agreed Value will be the Fair Market Value, consisting of the amount which an arm's length purchaser would be willing to pay for the Purchased Assets, less the cost of any required remodeling of the Franchised Premises if we have exercised our option on the lease.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, following the termination or expiration (without renewal) of the Franchise Agreement, Crisp & Green has the option to issue an Appraisal Notice within ten days. This notice informs the franchisee of Crisp & Green's intent to determine the Agreed Value of the personal property used in the Franchised Restaurant. This property includes the franchisee's owned inventory of non-perishable products, materials, supplies, furniture, equipment, and signs, but excludes cash, short-term investments, and items not meeting Crisp & Green's specifications.
Upon receiving the Appraisal Notice, the franchisee is prohibited from selling or removing any personal property from the premises. The franchisee must also provide Crisp & Green, its agents, and the Appraiser full access to the restaurant and all relevant books and records during business hours. This access allows for inventories and the determination of a purchase price for the Purchased Assets.
The Agreed Value of the Purchased Assets will initially be determined through consultation between the franchisee and Crisp & Green. If an agreement cannot be reached within fifteen days after the Appraisal Notice, the Agreed Value will default to the Fair Market Value. The Fair Market Value is defined as the amount an arm's length purchaser would pay for the assets, less any costs for required remodeling of the Franchised Premises if Crisp & Green has exercised their lease option.