What is Creative World School's definition of 'Improvements' relating to the school?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1 Alterations by Tenant. Tenant shall not make or cause to be made any structural alterations, additions or improvements to the leased premises without Landlord's prior written consent. Tenant may make non-structural alterations, additions and improvements without Landlord's prior consent. All alterations, additions and improvements shall be done in a good workmanlike manner. All alterations, additions or improvements excluding, however, Tenant's furniture, trade fixtures, equipment, and other personal property, shall become the property of the Landlord upon the expiration or termination of the Lease, except as Landlord may otherwise agree.
- 4.2 Construction Liens. Landlord's interest in the leased premises is not subject to liens for improvements made by Tenant and Tenant shall have no power or authority to subject the leased premises or any portion thereof to any mechanics', construction or other liens. Tenant shall promptly pay all contractors, subcontractors, materialmen, and laborers so as to prevent any liens from attaching to the leased premises. If any lien is made or filed against the leased premises or any part thereof, arising out of any services, labor or material furnished or alleged to have been furnished to, for or on behalf of Tenant, Tenant shall, at Tenant's sole cost and expense, discharge or transfer such lien to a lien transfer bond or other security in accordance with the Florida Construction Lien Law, within thirty (30) days after written request by Landlord.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, Section 4.1 outlines the stipulations regarding alterations, additions, and improvements to the leased premises. It distinguishes between structural and non-structural changes, noting that structural alterations require the landlord's prior written consent, while non-structural changes do not.
Importantly, all alterations, additions, and improvements, excluding the tenant's furniture, trade fixtures, equipment, and other personal property, become the property of the landlord upon the expiration or termination of the lease, unless otherwise agreed upon. This means that any significant investments a franchisee makes in improving the physical space of the Creative World School location could revert to the landlord at the end of the lease term.
Section 4.2 further clarifies that the landlord's interest in the leased premises is not subject to liens for improvements made by the tenant. The franchisee is responsible for promptly paying all contractors, subcontractors, materialmen, and laborers to prevent any liens from attaching to the property. If a lien is filed, the franchisee is obligated to discharge or transfer such lien within thirty days of a written request from the landlord, in accordance with Florida Construction Lien Law. This protects the landlord from any financial liabilities arising from the franchisee's improvements but places the onus on the franchisee to manage and resolve any construction-related financial disputes.
Prospective franchisees should carefully consider these terms, as they dictate the extent to which they can modify the leased premises and what happens to those modifications at the end of the lease. Understanding these conditions is crucial for managing investment costs and lease negotiations.