Is Creative World School able to modify the System from time to time?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
The System consists of a distinctive and innovative environment, service marks, trade names, distinctive business formats, methods, procedures, designs, layouts, signs, equipment, curricula, lesson plans, educational programs, trade dress, standards and specifications, all of which we have developed and which we (or our affiliates) may improve, further develop or otherwise modify from time to time (the "System").
You agree that System Standards prescribed from time to time in the Manual, or otherwise communicated to you in writing or other tangible form, constitute provisions of this Agreement as if fully set forth. All references to this Agreement include all System Standards as periodically modified.
11.03 Modification of System Standards. We may periodically modify System Standards, which may accommodate regional or local variations as we determine. Such modifications may obligate you to invest additional capital in the School ("Capital Modifications") and/or incur higher operating costs. However, such modifications will not alter your fundamental status and rights under this Agreement. We will not obligate you to make any Capital Modifications when such investment cannot in our reasonable judgment be amortized during the remainder of the Term, plus all eligible successor periods, unless we agree to extend the term of your franchise so that such additional investment, in our reasonable judgment, may be amortized; unless such investment is necessary in order to comply with applicable laws. We agree to give you 90 days to comply with Capital Modifications we require. However, if a Capital Modification requires an expenditure of more than $10,000 we agree to give you 180 days from the date such request is made to comply with such Capital Modification. You are obligated to comply with all modifications to System Standards, including Capital Modifications, within the time period we specify. The time periods and limits on Capital Modifications described in this Section will not apply to our requirements that, during Construction, you meet all of our System Standards for Construction, which may be modified by us during such Construction, upon our notice to you. In no event will we require you to spend in excess of 25% of our high estimate of the cost of the sum of leasehold improvements and furniture, fixtures and equipment from our Franchise Disclosure Document during the Term in connection with Capital Modifications.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, the System, which includes various elements such as business formats, methods, procedures, designs, layouts, signs, equipment, curricula, lesson plans, educational programs, trade dress, standards, and specifications, may be improved, further developed, or otherwise modified by Creative World School from time to time.
This means that as a franchisee, you must adapt to changes Creative World School makes to its operational standards and offerings. These modifications to System Standards may require additional capital investment in the school and/or lead to higher operating costs. However, these modifications will not alter your fundamental status and rights under the Franchise Agreement.
Creative World School will provide you with 90 days to comply with any Capital Modifications they require. However, if a Capital Modification requires an expenditure of more than $10,000, they will give you 180 days to comply. Franchisees are obligated to comply with all modifications to System Standards, including Capital Modifications, within the specified time period. However, Creative World School will not require you to spend in excess of 25% of their high estimate of the cost of the sum of leasehold improvements and furniture, fixtures and equipment from their Franchise Disclosure Document during the Term in connection with Capital Modifications.