Can Creative World School cancel unauthorized agreements entered into by the franchisee?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
Based on the 2025 Creative World School Franchise Disclosure Document, several addenda and riders address the enforceability and interpretation of agreements, acknowledgements, and waivers signed by franchisees, particularly in relation to state franchise laws. These clauses generally state that no agreement signed by the franchisee can waive rights under state franchise law or disclaim reliance on the franchisor. However, the FDD does not explicitly state whether Creative World School can cancel unauthorized agreements entered into by the franchisee.
Several state-specific riders included in the Creative World School FDD, such as those for Illinois, New York, Maryland, and Virginia, include clauses that reinforce the franchisee's rights under state franchise laws. For example, the addendum for Maryland states that general releases required for renewal, sale, or transfer do not apply to liabilities under Maryland franchise law. Similarly, the Illinois rider voids any provision that requires a waiver of compliance with Illinois franchise law. These provisions suggest a focus on protecting franchisees' statutory rights and ensuring that franchisees are not pressured into waiving legal protections.
While the FDD includes provisions aimed at protecting the franchisee's rights and preventing waivers of statutory protections, it does not directly address the scenario of a franchisee entering into unauthorized agreements and whether Creative World School can cancel them. A prospective franchisee should seek clarification from Creative World School regarding the specific policies and procedures related to franchisee-initiated agreements and the franchisor's rights to cancel such agreements if they are deemed unauthorized or non-compliant with the franchise agreement.