Who pays for the qualified appraiser to determine the purchase price of a Dq Treat restaurant's assets?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
14.5 Purchase Option. Company may purchase or designate a third party to purchase any or all of the assets of the Restaurant that are owned by Licensee or any of Licensee's affiliates including the land, building, equipment, fixtures, signage, furnishings, supplies, leasehold, leasehold improvements, and inventory of the Restaurant, upon the following conditions:
(A) Company must give Licensee written notice of its intent to exercise its purchase rights under this section 14.5 within 30 days after the date of the expiration or termination of this agreement.
(B) The purchase will be at a price determined by a qualified appraiser paid for by Company and selected with the consent of both parties.
The price determined by the appraiser will be the reasonable fair market value of the assets based on their continuing use in, as, and for the operation of a DQ® Treat restaurant and the appraiser will designate a price for each category of asset (e.g., land, building, equipment, fixtures, etc. but not good will).
If the parties cannot agree upon an appraiser, either party may petition a judge of the United States district court for the district in which the Authorized Location is located to appoint an appraiser.
- (C) Within 45 days after Company's receipt of the appraisal report, Company must inform Licensee if Company or Company's designee intends to purchase any or all of the assets at the price in the appraisal report.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, in the event that Dq Treat exercises its option to purchase the assets of a Dq Treat restaurant, Dq Treat is responsible for paying for the qualified appraiser. The appraiser will determine the reasonable fair market value of the restaurant's assets, excluding goodwill, based on their continued use as a Dq Treat location. Both Dq Treat and the franchisee must agree on the selection of the appraiser.
If Dq Treat and the franchisee cannot agree on an appraiser, either party has the right to petition a judge in the United States District Court for the district where the authorized location is situated to appoint an appraiser. This ensures a fair and impartial valuation process, even if the two parties involved cannot come to a consensus on their own.
This appraisal process is initiated if Dq Treat notifies the franchisee of its intent to exercise its purchase rights within 30 days after the termination or expiration of the franchise agreement. Following the appraisal, Dq Treat has 45 days to inform the franchisee whether it or its designee intends to purchase the assets at the appraised price. This process ensures transparency and provides a defined timeline for both parties during the potential purchase of the restaurant's assets by Dq Treat.