What does Creative World School advise the franchisee to do regarding the lease?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event Tenant assigns this Lease to a franchisee of Tenant, the following provisions shall apply following such assignment. For purposes of this Section 18, CREATIVE WORLD SCHOOL, INC. shall be referred to as "Franchisor."
- (a) Assignment and Subletting. Landlord's consent shall not be necessary for an assignment or subletting (i) to Franchisor or (ii) to a person or entity which directly or indirectly controls, is controlled by or is under common control with Franchisor or (iii) to any other franchisee of Franchisor. Tenant or Franchisor shall give Landlord notice of any such assignment or subletting prior to such assignment or subletting.
- (b) Default of Tenant. In the event a default occurs at any time during the term of the Lease, Landlord shall provide notice of such default to Franchisor by certified mail, return receipt requested or by nationally recognized overnight courier service to the following address:
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, the franchisor outlines specific procedures related to the lease agreement, particularly concerning assignment, subletting, and default scenarios. If a franchisee (referred to as Tenant in the lease context) assigns the lease to another franchisee, Creative World School, Inc. (referred to as Franchisor), or an entity under common control with the Franchisor, the landlord's consent is not required. However, the Tenant or Franchisor must notify the landlord before any such assignment or subletting occurs. This provides franchisees with flexibility in transferring their lease under certain conditions without needing additional approval from the landlord. This is a beneficial clause for franchisees looking to sell or transfer their franchise.
In the event of a default by the Tenant under the lease terms, the landlord is required to provide notice of such default to Creative World School. This notice must be sent via certified mail with return receipt requested or through a nationally recognized overnight courier service to the Franchisor's designated address. This requirement ensures that Creative World School is informed of any potential issues with a franchisee's lease obligations, allowing them to intervene or assist in resolving the default. This protects the brand and potentially helps the franchisee avoid losing their location.
Furthermore, the lease agreement includes a clause ensuring the Tenant's quiet enjoyment of the leased premises for the entire term, subject to the terms and conditions of the lease. This means the franchisee has the right to use the property without undue interference from the landlord, provided they comply with the lease terms. Additionally, if the franchisee owns the real estate where the Creative World School is located, they will not be required to sell the real estate upon default or termination but may be required to lease the real estate for the remainder of the franchise term (excluding additional renewals) for fair market value. These provisions collectively aim to balance the interests of the franchisee, franchisor, and landlord, providing a framework for managing the lease throughout the franchise relationship.