What is the amount of the deposit required for site assessment for a Creative World School franchise?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 5 INITIAL FEES
Deposit for Site Assessment
We may require prospective franchisees to pay us a deposit of $5,000 (the "Deposit"). We hold and apply the Deposit in accordance with our Deposit Agreement for Site Assessment (the "Site Assessment Deposit Agreement"). A copy of it is attached as Exhibit "B." You must pay the Deposit when you sign the Site Assessment Deposit Agreement. We will only refund a portion of the Deposit to you if you and we both do not sign a Franchise Agreement within 180 days of signing the Site Assessment Deposit Agreement. Solely in that event, we will refund the Deposit to you less the greater of: (i) $2,500; or (ii) our out-of-pocket expenses for time and effort expended in reliance upon your application. Otherwise, it is not refundable, but we apply it in full towards the Initial Franchise Fee, as applicable. The Deposit is uniformly imposed among franchisees who sign a Site Assessment Deposit Agreement.
Initial Franchise Fee
We currently charge an initial franchise fee that ranges from $75,000 to $80,000, depending on the number of Creative World School® Businesses you operate (the "Initial Franchise Fee"). Currently, the Initial Franchisee Fee is $80,000 for your first School. If you are a United States armed services veteran who presents satisfactory evidence of an honorable discharge (such as a DD214), the initial fee for your first Creative World® School franchise will be reduced to $75,000. If you are purchasing a second or subsequent School, the Initial Franchise Fee is reduced to $75,000.
Source: Item 5 — INITIAL FEES (FDD pages 14–15)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, a prospective franchisee may be required to pay a $5,000 deposit for site assessment. This deposit is held according to the terms of the Site Assessment Deposit Agreement, a copy of which is included as an exhibit to the FDD.
The $5,000 deposit is payable when the franchisee signs the Site Assessment Deposit Agreement. This deposit is generally non-refundable. However, if a Franchise Agreement is not signed by both Creative World School and the franchisee within 180 days of signing the Site Assessment Deposit Agreement, a portion of the deposit may be refunded. The refund will be the deposit amount less the greater of $2,500 or Creative World School's out-of-pocket expenses incurred while relying on the application.
If a Franchise Agreement is signed, the $5,000 deposit is applied in full towards the Initial Franchise Fee. The FDD states that this deposit is uniformly imposed among franchisees who sign a Site Assessment Deposit Agreement. Once a site for the school has been approved by both parties, the deposit is no longer refundable.