What are all the fees a Creative World School franchisee might pay before opening, considering Items 5, 6, and 7?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure (1) | Low Amount | High Amount | Method Of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee (1)(2) | $75,000 | $80,000 | Lump Sum | Signing Franchise Agreement | Us |
| Building / Leasehold Improvements, not including landscaping, irrigation, sidewalk, trail and fencing (4) | $3,500,000 | $6,000,000 | As Agreed | By agreement with provider | Lessors, Contractors, Subs |
| Landscaping, Irrigation, Sidewalk, Trail, Fencing, Playground Equipment, and Playground Surfacing (4) | $800,000 | $1,000,000 | Lump Sum or Installments | As Incurred | Third Parties |
| Impact Fees and Utility Connection Fees | $100,000 | $500,000 | Lump Sum | Prior to construction | City/County |
| Land Costs (5) | $750,000 | $1,500,000 | As Agreed | By agreement with provider | Sellers |
| Architectural/Enginee ring, Legal & Accounting Services (6) | $175,000 | $250,000 | As Agreed | By agreement with provider | Suppliers |
| Training Expenses | $10,000 | $20,000 | As Agreed | As Incurred | Suppliers |
| (lodging, food, travel) | |||||
| Opening Package Fee (3) | $275,000 | $500,000 | As Agreed | By agreement with us or our designee | Us, or our Affiliate |
| Accreditation Fee | $2,000 | $2,000 | Lump Sum | As Incurred | Us or Suppliers |
| Systems Standards | $1,050 | $1,500 | Lump Sum | Monthly | Us |
| Fee (3 months) | |||||
| Signage | $12,000 | $20,000 | Lump Sum | Within 60 days of opening School | Suppliers |
| Opening Inventory and Supplies (7) | $15,000 | $20,000 | Lump Sum | Within 60 days of opening School | Suppliers |
| Type of Expenditure (1) | Low Amount | High Amount | Method Of Payment | When Due | To Whom Payment is to be Made |
| Grand Opening Advertising | $15,000 | $50,000 | As Incurred | Within 60 days of opening School | Third Parties |
| Utility Deposits | $3,000 | $10,000 | As Incurred | Prior to opening | Third Parties |
| Insurance (8) | $9,000 | $40,000 | Lump sum | As Incurred | Third Parties |
| Additional Funds ‒ 3 | $25,000 | $150,000 | As Incurred | As Incurred | Third Parties |
| months(9) | |||||
| TOTAL ESTIMATED | $5,767,050 | $10,143,500 | |||
| INITIAL | |||||
| INVESTMENT | |||||
| UNDER THE | |||||
| FRANCHISE | |||||
| PROGRAM(9) |
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, potential franchisees can expect to pay several fees before opening their school. The initial fees include a Deposit for Site Assessment, which may be $5,000. This deposit is potentially refundable, but only if a Franchise Agreement is not signed within 180 days, and even then, Creative World School may retain $2,500 or their out-of-pocket expenses. The Initial Franchise Fee ranges from $75,000 to $80,000, depending on whether the franchisee is a veteran or is purchasing a subsequent school. Additionally, there is an Opening Package Fee, which covers the interior items required to operate the school, and this ranges from $275,000 to $500,000.
Item 7 provides an estimated initial investment table, detailing further pre-opening costs. These include expenses for building/leasehold improvements ($3,500,000 to $6,000,000), landscaping, irrigation, playground equipment, and related items ($800,000 to $1,000,000), impact and utility connection fees ($100,000 to $500,000), land costs ($750,000 to $1,500,000), and architectural, engineering, legal, and accounting services ($175,000 to $250,000). Franchisees will also incur training expenses ($10,000 to $20,000), an accreditation fee of $2,000, initial systems standards fees ($1,050 to $1,500 for 3 months), signage costs ($12,000 to $20,000), and initial inventory and supplies ($15,000 to $20,000). A grand opening advertising expense is also anticipated ($15,000 to $50,000), along with utility deposits ($3,000 to $10,000) and insurance costs ($9,000 to $40,000). Additional funds for the first 3 months of operation are estimated at $25,000 to $150,000.
These fees are payable to Creative World School, its affiliates, or third-party suppliers, and the timing varies depending on the specific fee, with some due upon signing the Franchise Agreement and others as incurred or within a specified timeframe before or after opening. Note that most fees payable to Creative World School or its affiliates are non-refundable, except for the Deposit under certain conditions. The total estimated initial investment ranges from $5,767,050 to $10,143,500. Prospective franchisees should carefully review these costs and payment terms to understand their financial obligations before opening a Creative World School franchise.