What is the 'Agreement to Lease' referring to in the Creative World School lease agreement?

According to Creative World School's 2025 Franchise Disclosure Document, the 'Agreement to Lease' refers to the franchisor's standard form agreement that is attached to the Franchise Disclosure Document. This agreement becomes relevant if the franchisor exercises its option to purchase the school from the franchisee upon termination of the franchise agreement, either by the franchisor for cause or by the franchisee without cause.

Specifically, if Creative World School decides to purchase the school, the franchisee may be required to lease the site to the franchisor or its designee. The terms of this lease would be governed by the 'Agreement to Lease' and a related Lease Agreement, both of which are standard forms included as exhibits to the Franchise Disclosure Document. The rental value will be the fair market rental value, but in no event less than the franchisee's monthly mortgage obligation for the site.

This arrangement ensures that Creative World School has a mechanism to continue operating a school at the location even after a franchisee exits the system, maintaining the brand's presence and minimizing disruption. For a prospective franchisee, it's crucial to carefully review the 'Agreement to Lease' to understand the terms and conditions under which they might be required to lease the property back to the franchisor, especially concerning the determination of fair market rental value and the potential impact on their mortgage obligations.