Who are considered the "Indemnified Parties" that a Creative World School franchisee must indemnify?

Based on the 2025 Creative World School Franchise Disclosure Document addendum for the Commonwealth of Virginia, a franchisee is required to execute general releases, satisfactory in form and substance to the franchisor, which cover claims against Creative World School, its Affiliates, officers, directors, employees, agents, successors, and assigns. However, this requirement has an exception for matters falling under the Minnesota Franchise law. This means that while franchisees generally release the franchisor and related parties from liability, they retain their rights and protections under Minnesota franchise law. This addendum ensures that franchisees are not unfairly disadvantaged and can still pursue claims related to franchise law violations.

In practical terms, this clause means that if a Creative World School franchisee in Virginia has a dispute with the franchisor, they generally cannot sue the franchisor or its related parties, provided the release is properly executed. However, if the dispute involves a violation of the Minnesota Franchise law, the franchisee retains the right to bring a claim. This is a significant protection for franchisees, as it prevents the franchisor from using the general release to shield itself from liability for violations of franchise law.

Prospective franchisees should carefully review the scope of the general release and understand their rights under the Minnesota Franchise law. It is advisable to seek legal counsel to ensure that the release is fair and does not unduly limit their ability to pursue legitimate claims against Creative World School. Understanding these limitations and exceptions is crucial for any potential franchisee to make an informed decision.