What am I obligated to deliver to Creative World School at the closing of the purchase of my school?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
The purchase price will be paid at the closing of the purchase, which will take place not later than 90 days after determination of the purchase price. We have the right to set off against the purchase price, and thereby reduce the purchase price by, any and all amounts you or your owners owe to us. At the closing, you agree to deliver instruments transferring to us:
- (i) good and merchantable title to the assets purchased, free and clear of all liens and encumbrances (other than liens and security interests acceptable to us), with all sales and other transfer taxes paid by you;
- (ii) all licenses and permits of the School which may be assigned or transferred; and
- (iii) the leasehold interest and improvements in the Site.
If you cannot deliver clear title to all of the purchased assets, or if there are other unresolved issues, the closing of the sale will be accomplished through an escrow.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, if Creative World School exercises its option to purchase your school, you are obligated to deliver certain items at the closing of the purchase. The closing will occur no later than 90 days after the purchase price is determined.
Specifically, you must deliver instruments transferring good and merchantable title to the assets purchased. This title must be free and clear of all liens and encumbrances, unless Creative World School finds the liens and security interests acceptable. You are also responsible for paying all sales and other transfer taxes.
Additionally, you must deliver all licenses and permits of the school that can be assigned or transferred to Creative World School. Finally, you must deliver the leasehold interest and any improvements made to the site. If you cannot deliver clear title to all purchased assets or if there are other unresolved issues, the closing of the sale will be accomplished through an escrow account.