Does Exhibit A include an unaudited statement of income for Creative World School?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
HISTORICAL AVERAGE INCOME AND EXPENSES FOR CERTAIN COMPANY-OWNED AND FRANCHISED SCHOOLS
YEAR ENDED DECEMBER 31, 2024
The figures presented below represent the 2024 average and median actual income and expenses of 18 Schools with 12,000 square feet or larger that operated for a full 12 months as of December 31, 2024. This includes 5 Company-Owned Schools (owned and operated by our affiliates) and 13 Franchised Schools*.* There are no material financial and operational characteristics of the Company-Owned Schools that are reasonably anticipated to differ materially from future operational franchise Schools. Some Schools provided information that did not conform to generally accepted accounting principles, so the information was not included in the income and expense figures presented below. We have only included those Schools that meet this criteria and provided expense information to us. The expense figures presented include royalties, payroll salaries, payroll taxes and other, benefits, food and kitchen supplies, educational expenses, building expenses, automobile expenses, advertising, insurance, utilities, and general and administrative expenses. There are other expenses you will incur in operating a Creative World School® Business, but we do not present them in this Financial Performance Representation. A combination of factors, including, but not limited to, tuition charged, whether an owner chooses benefits for employees, extras provided by owners specific to their school, etc., may affect these amounts and percentages.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 80)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not explicitly stated whether Exhibit A includes an unaudited statement of income for Creative World School. However, Item 19 provides historical average income and expenses for certain company-owned and franchised schools. These figures represent the average and median actual income and expenses of schools that meet specific criteria, such as size and operation duration. The FDD includes data for the years ended December 31, 2022, December 31, 2023, and December 31, 2024.
The financial information presented is derived from data submitted by franchisees and affiliates. It's important to note that some schools' data was excluded if it did not conform to generally accepted accounting principles or if they did not provide expense information. The expenses included in the figures are royalties, payroll salaries, payroll taxes and other benefits, food and kitchen supplies, educational expenses, building expenses, automobile expenses, advertising, insurance, utilities, and general and administrative expenses. The FDD explicitly states that there are other expenses that a franchisee will incur that are not included in the financial performance representation.
While the FDD provides average income and expenses, it does not confirm whether an unaudited statement of income is included in Exhibit A. A prospective franchisee should verify if Exhibit A contains the unaudited statement of income and request to review the written substantiation that supports the financial performance representation from Creative World School to gain a comprehensive understanding of the financial data.