What is the definition of 'Marketing Contributions' for Creative World School?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to contribute to the Marketing Fund such amounts that we prescribe from time to time (the "Marketing Contributions"), not more than 1% of your Gross Revenues per week (except as described below), payable in the same manner as the Royalty.
We reserve the right to defer or reduce contributions of a School franchisee and, upon 30 days' prior written notice to you, to reduce or suspend contributions to and operations of the Marketing Fund for one or more periods of any length and to terminate (and, if terminated, to reinstate) the Marketing Fund.
If the Marketing Fund is terminated, all unspent monies on the date of termination will be distributed to our franchisees in proportion to their respective contributions to the Marketing Fund during the preceding 12-month period.
We or our affiliates may contribute to the Marketing Fund on a different basis than other franchise owners until circumstances warrant otherwise because our affiliates' operations are currently more or less substantial than franchise operations.
We will not assess Marketing Contributions until at least 50 Schools are open and operating.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, Marketing Contributions are the amounts that Creative World School franchisees agree to contribute to the Marketing Fund. These contributions are prescribed by Creative World School from time to time, but will not exceed 1% of the franchisee's Gross Revenues per week. These contributions are payable in the same manner as the Royalty fees.
Creative World School retains the right to defer or reduce a franchisee's Marketing Contributions. They can also reduce or suspend contributions to, and operations of, the Marketing Fund for any length of time, with 30 days' prior written notice to the franchisee. Creative World School can also terminate and reinstate the Marketing Fund.
Notably, Creative World School will not assess Marketing Contributions until at least 50 Schools are open and operating. If the Marketing Fund is terminated, any unspent monies will be distributed to franchisees in proportion to their contributions to the fund over the preceding 12-month period. Creative World School or its affiliates may contribute to the Marketing Fund on a different basis than other franchisees until circumstances warrant otherwise, due to the affiliates' operations being more or less substantial than franchise operations.