What assets can Creative World School exclude from the purchase when buying my Creative World School?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
We may exclude from the assets purchased cash or its equivalent and any equipment, signs, inventory, materials and supplies that are not reasonably necessary (in function or quality) to the School's operation or that we have not approved as meeting standards for Schools, and the purchase price will reflect such exclusions.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, when Creative World School exercises its option to purchase a franchise location, it may exclude certain assets from the purchase. Specifically, Creative World School can exclude cash or its equivalent. Additionally, Creative World School can exclude any equipment, signs, inventory, materials, and supplies that are not reasonably necessary for the school's operation, either in terms of function or quality.
Creative World School can also exclude any assets that it has not approved as meeting the standards for Creative World School locations. The purchase price offered by Creative World School will reflect these exclusions, meaning the franchisee will not be compensated for these items during the sale.
This policy protects Creative World School from overpaying for unnecessary or substandard assets when buying back a franchise. For a prospective franchisee, this means maintaining approved standards for all assets and understanding that non-essential or unapproved items may not be included in any potential future sale of the franchise back to Creative World School.