What is the deadline for the two appointed appraisers to jointly appoint a third appraiser in the Itan appraisal process?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
If the parties cannot agree on the purchase price, the purchase price shall be the Appraised Value established in accordance with this Section. "Appraised Value" means the fair market value of the Acquired Assets as of the date this Agreement is terminated or expires, as applicable; provided, however, that fair market value shall not include any value for goodwill and/or the franchise rights granted by this Agreement.
The parties shall attempt to mutually agree upon a single independent appraiser.
If they fail to do so, either party may demand the appointment of three (3) appraisers in accordance with the following: (i) no later than 15 days after the demand, each party shall appoint one (1) appraiser and notify the other party of the appointed appraiser's name and contact information; and (ii) no later than 30 days after the demand, the two (2) appraisers appointed by the parties will jointly appoint a third (3rd) appraiser.
If either party fails to appoint an appraiser within the 15-day period, then the appraiser appointed by the other party shall be deemed the single appraiser approved by the parties.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if the parties involved in a purchase option cannot agree on the purchase price of acquired assets, an appraisal process will be initiated to determine the fair market value. If a single appraiser cannot be agreed upon, then each party will appoint an appraiser within 15 days of a demand for appraisers.
Following the appointment of the first two appraisers, they have 30 days from the initial demand to jointly appoint a third appraiser. This third appraiser is intended to help reach a consensus on the appraised value of the assets.
If either party fails to appoint an appraiser within the initial 15-day period, the appraiser appointed by the other party will be considered the single appraiser, and their valuation will determine the purchase price. This highlights the importance of adhering to the deadlines to ensure proper representation in the appraisal process. Franchisees should be aware of these timelines and be prepared to act promptly if an appraisal becomes necessary.