What is the timeframe Crisp & Green has to provide an Appraisal Notice after termination or expiration of the 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, Crisp & Green has the option to purchase the franchisee's restaurant assets upon termination or expiration of the franchise agreement. To exercise this option, Crisp & Green must provide an "Appraisal Notice" within ten days after the termination or expiration date.
This Appraisal Notice initiates the process of determining the "Agreed Value" of the personal property used in the franchised restaurant. This includes items like non-perishable inventory, materials, supplies, furniture, equipment, and signs. However, it excludes cash, short-term investments, and items that don't meet Crisp & Green's specifications. Once the notice is given, the franchisee is prohibited from selling or removing any of the restaurant's personal property and must provide Crisp & Green and its representatives access to the premises and records for inventory and valuation purposes.
The "Agreed Value" is initially determined through consultation between the franchisee and Crisp & Green. If they can't agree within fifteen days after the Appraisal Notice, the value is then set as the Fair Market Value. This is defined as the amount an arm's-length purchaser would pay for the assets, minus any required remodeling costs if Crisp & Green also exercises its lease option. This process ensures that if Crisp & Green decides to purchase the restaurant's assets, a fair valuation method is in place, either through mutual agreement or a fair market assessment.