Can the Creative World School agreement be assigned without written consent?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
least thirty (30) days prior to the date of commencement of any offering or other transaction covered by this Section.
15.08 Effect of Consent to Transfer. Our consent to a transfer of this Agreement and the School or any interest in you does not constitute a representation as to the fairness of the terms of any contract between you and the transferee, a guarantee of the prospects of success of the School or transferee or a waiver of any claims we may have against you (or your owners) or of our right to demand the transferee's exact compliance with any of the terms or conditions of this Agreement.
15.09 Our Right of First Refusal. If you (or any of your owners) at any time determine to sell, assign or transfer for consideration an interest in this Agreement and the School or an ownership interest in you, you (or such owner) agree to obtain a bona fide, executed written offer and earnest money deposit (in the amount of 5% or more of the offering price) from a responsible and fully disclosed offeror (including lists of the owners of record and all beneficial owners of any corporate or limited liability company offeror and all general and limited partners of any partnership offeror) and immediately submit to us a true and complete copy of such offer, which includes details of the payment terms of the proposed sale and the sources and terms of any financing for the proposed purchase price. To be a valid, bona fide offer, the proposed purchase price must be denominated in a dollar amount. The offer must apply only to an interest in you or in this Agreement and the School and may not include an offer to purchase any of your (or your
owners') other property or rights. However, if the offeror proposes to buy any other property or rights from you (or your owners) under a separate, contemporaneous offer, such separate, contemporaneous offer must be disclosed to us, and the price and terms of purchase offered to you (or your owners) for the interest in you or in this Agreement and the School must reflect the bona fide price offered and not reflect any value for any other property or rights.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
The 2025 Creative World School Franchise Disclosure Document states that if a franchisee (or any of their owners) decides to sell, assign, or transfer their interest in the Franchise Agreement and the School, they must first obtain a bona fide, executed written offer and earnest money deposit (at least 5% of the offering price) from a responsible and fully disclosed offeror. The franchisee must then provide Creative World School with a true and complete copy of the offer, including payment terms and financing details.
Creative World School has the right to purchase the franchisee's interest at the price and terms outlined in the offer. This right is exercisable within 30 days of receiving a copy of the offer and any other requested information.
Creative World School's consent to a transfer of the Franchise Agreement or the School does not represent a guarantee of the fairness of the terms between the franchisee and the transferee, nor does it guarantee the success of the School or the transferee. It also does not waive any claims Creative World School may have against the franchisee or their right to demand compliance with the Franchise Agreement from the transferee. This clause ensures that Creative World School maintains control over who becomes a franchisee and protects their interests during a transfer.