Can Creative World School's financial statements be required to be reviewed or audited?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.03 Access to Information. You agree to verify and sign each report and financial statement in the manner we prescribe. We have the right to disclose data derived from such reports without identifying you or the location of the School. We also have the right to require you to have reviewed or audited financial statements prepared on an annual basis if we reasonably believe that the reports are incorrect. Moreover, we have the right as often as we deem appropriate (including on a daily basis) to access all computer registers and other computer systems that you are required to maintain in connection with the operation of the School and to retrieve all information relating to the School's operations.
- 13.04 Copies of Reports. You agree to furnish us with a copy of all sales, income and other tax returns relating to your School, at our request. You will also send us copies of any sales or other reports sent to any landlord or governmental agency, at our request.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, Creative World School retains the right to request that franchisees provide reviewed or audited financial statements on an annual basis. This is contingent on Creative World School reasonably believing that the franchisee's reports are inaccurate.
Creative World School also has the right to access all computer registers and other computer systems that franchisees are required to maintain in connection with the operation of their schools. This access can occur as often as Creative World School deems appropriate, potentially even on a daily basis, and allows them to retrieve all information relating to the school's operations.
Furthermore, franchisees are obligated to furnish Creative World School with copies of all sales, income, and other tax returns related to their school upon request. They must also provide copies of any sales or other reports sent to any landlord or governmental agency, if requested by Creative World School. This comprehensive access to financial data and records enables Creative World School to monitor the financial health and compliance of its franchisees, and to ensure the accuracy of reported information.