What constitutes abandonment of a Creative World School franchise, leading to a non-curable default?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| g. | Provision "Cause" defined – | Section in Franchise or Other Agreement Section 16.2 | Summary You have 5 days to cure health, safety or |
|---|---|---|---|
| curable defaults | sanitation law violations and education, licensure or certification, ordinance or regulation violations; 10 days to cure monetary defaults to us or our affiliates or approved suppliers; 30 days to cure noncompliance with any provision of the Franchise Agreement or the System Standards | ||
| h. | "Cause" defined – non curable defaults | Section 16.2 | Non-curable defaults include material misrepresentation or omission, failure to complete training to our satisfaction; failure to open within 12 months of construction approval; failure to commence construction of the School within 3 months; abandonment; unapproved transfers; conviction of, or a plea of guilty or no contest to, a felony or serious criminal misconduct or offense that we believe to indicate moral turpitude or is adverse to the Marks, indicates breach of trust, or which makes parents uneasy, uncertain or afraid to permit you to be alone with their children, is likely to adversely affect your reputation, our reputation or that of any other School; dishonest, criminal or unethical conduct; loss of the Site; unauthorized use or disclosure of the Manuals or confidential information; failure to pay taxes; failure to cure breach or default under any other agreement with us or our affiliates; repeated defaults (even if cured); an assignment for the benefit of creditors or written admission of insolvency or inability to pay debts as they become due |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 53–57)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, abandonment is defined as a non-curable default that can lead to the termination of the franchise agreement. This means that if a franchisee abandons the Creative World School, they will not have the opportunity to correct the issue, and Creative World School can immediately terminate the agreement.
Other non-curable defaults include material misrepresentation or omission, failure to complete training to the franchisor's satisfaction, failure to open within 12 months of construction approval, failure to commence construction of the School within 3 months, unapproved transfers, conviction of, or a plea of guilty or no contest to, a felony or serious criminal misconduct or offense that the franchisor believes to indicate moral turpitude or is adverse to the Marks, indicates breach of trust, or which makes parents uneasy, uncertain or afraid to permit you to be alone with their children, is likely to adversely affect your reputation, our reputation or that of any other School; dishonest, criminal or unethical conduct; loss of the Site; unauthorized use or disclosure of the Manuals or confidential information; failure to pay taxes; failure to cure breach or default under any other agreement with us or our affiliates; repeated defaults (even if cured); an assignment for the benefit of creditors or written admission of insolvency or inability to pay debts as they become due.
Prospective franchisees should carefully consider these non-curable defaults, as they represent serious breaches of the franchise agreement that cannot be rectified. Understanding these conditions is crucial for maintaining a successful and compliant Creative World School franchise. Franchisees should seek clarification from Creative World School regarding specific actions that may be interpreted as abandonment to avoid unintentional default.