What agreement predates the lease agreement for a Creative World School, and what is its significance?

According to the 2025 Creative World School Franchise Disclosure Document, the Franchise Agreement predates the lease agreement.

Exhibit A to the Agreement to Lease is the Form of Lease, indicating that a lease agreement is contingent upon the existence of a broader agreement. This means that before a franchisee secures a location for their Creative World School, they must first enter into a Franchise Agreement with Creative World Schools Franchising Company, Inc.

The Franchise Agreement establishes the relationship between the franchisee and Creative World School, outlining the rights and responsibilities of both parties. This includes the franchisee's right to use the Creative World School brand, the franchisor's support and training obligations, and the fees and royalties the franchisee must pay. Securing the Franchise Agreement before the lease ensures that both parties are aligned on the business terms before the franchisee commits to a specific location and its associated costs.

Prospective Creative World School franchisees should carefully review the Franchise Agreement to understand their obligations and the franchisor's commitments before signing any lease agreements. This sequence protects both the franchisee and the franchisor by ensuring a mutual understanding before significant financial investments are made in real estate.