Can Golden Krust Caribbean Restaurant exclude certain assets from the purchase of the Restaurant?

According to the 2024 Golden Krust Caribbean Restaurant Franchise Disclosure Document, Golden Krust Caribbean Restaurant has the option to exclude certain assets when purchasing a restaurant. Specifically, Golden Krust Caribbean Restaurant may exclude cash or its equivalent, as well as any equipment, signs, inventory, materials, and supplies that are not reasonably necessary for the Restaurant's operation in terms of function or quality. This also applies to items that Golden Krust Caribbean Restaurant has not approved as meeting their standards. The purchase price will be adjusted to reflect these exclusions.

This clause protects Golden Krust Caribbean Restaurant by allowing them to avoid purchasing unnecessary or substandard assets during a restaurant acquisition. For a franchisee, this means that the valuation of their restaurant for potential purchase by Golden Krust Caribbean Restaurant will not include items deemed unnecessary or not up to standard, potentially lowering the overall purchase price they receive.

If the franchisee and Golden Krust Caribbean Restaurant cannot agree on the fair market value, an independent appraiser will determine the value, and this determination will be binding. Furthermore, Golden Krust Caribbean Restaurant has the right to offset any amounts owed to them by the franchisee against the purchase price, reducing the final amount paid to the franchisee.