When determining the Appraised Value for Itan's purchase, does it include goodwill or franchise rights?

According to Itan's 2025 Franchise Disclosure Document, the appraised value of the Acquired Assets will not include any value for goodwill and/or the franchise rights granted by the agreement. This is relevant if Itan chooses to exercise its purchase option upon termination or expiration of the franchise agreement.

In the event that Itan exercises its purchase option, the price for the Acquired Assets will be either a mutually agreed-upon price between the parties or the Appraised Value. If the parties cannot agree on the purchase price, the Appraised Value will be determined by independent appraisers. The parties will attempt to agree upon a single independent appraiser. If they fail to do so, each party will appoint an appraiser, and those two appraisers will jointly appoint a third appraiser.

This appraisal process ensures a fair valuation of the tangible assets, excluding intangible assets like goodwill or the value of the Itan franchise itself. This distinction is important for franchisees to understand, as it affects the potential compensation they might receive if Itan decides to purchase the assets of the franchise at the end of the agreement.