What document must a Creative World School franchisee complete to describe all of their owners and their interests?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) the Principal Owners Statement will completely and accurately describe all of your owners and their interests in you. A copy of our current form of Principal Owners Statement is attached to the Franchise Disclosure Document;
- (d) you and your owners agree to revise the Principal Owners Statement as may be necessary to reflect any ownership changes and to furnish such other information about your organization or formation as we may request (no ownership changes that
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 51–52)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, if the franchisee is a business entity, such as a corporation, limited liability company, or partnership, they must complete the Principal Owners Statement. This document should accurately describe all owners of the business entity and their respective interests in the company. A copy of the current form of the Principal Owners Statement is attached to the Franchise Disclosure Document.
Creative World School requires this statement to ensure transparency regarding the ownership structure of its franchisees. This allows Creative World School to understand who is ultimately responsible for the franchise's operations and to assess any potential conflicts of interest or other risks associated with the ownership.
Furthermore, the franchisee is obligated to update the Principal Owners Statement as necessary to reflect any changes in ownership. They must also provide any additional information about the organization or formation of the business entity as requested by Creative World School. This ongoing requirement ensures that Creative World School maintains current and accurate information about the ownership of each franchise.
It is important for prospective Creative World School franchisees to carefully review the Principal Owners Statement form and understand the information required. Accurately completing and maintaining this document is a condition of the franchise agreement, and failure to do so could potentially result in a breach of contract.