What happens if the two appraisers' valuations for a Noodles & Company franchise differ by more than 10%?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
If the valuations set by the two appraisers differ by more than 10%, the two appraisers shall select a third professionally certified appraiser who also shall appraise the fair market value of the Assets.
The average value set by the appraisers (whether two or three appraisers as the case may be) shall be conclusive and shall be the Purchase Price.
The appraisers' fees and costs shall be borne equally by Franchisor and Area Operator.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, if the initial two appraisers cannot agree on the fair market value of the assets of the franchise and their valuations differ by more than 10%, a third appraiser is brought in to assess the fair market value. This third appraiser must also be professionally certified.
The involvement of a third appraiser is triggered specifically when the difference between the first two appraisals exceeds 10%. This process is designed to ensure a fair and accurate valuation of the Noodles & Company franchise's assets, which directly impacts the purchase price if Noodles & Company exercises its option to purchase the assets.
The average value set by the appraisers, whether it's from the initial two or the subsequent three, will be considered conclusive and will determine the final purchase price. Both Noodles & Company and the Area Operator share the costs and fees associated with all appraisers involved.