How does the Creative World School franchise agreement define the term 'owner'?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
agreements, etc.). of Franchisee (e.g., articles of incorporation or organization, partnership or shareholder This Owner's Statement is current and complete as of , 20 FRANCHISEE: OWNERS: Individuals: Corporation, Limited Liabilty Company or Partnership: (Signature) (Name of Entity) (Print Name) By: Name: Title: Date: (Signature) (Name of Entity) (Print Name) By: Name: Title: Date: (Signature) (Name of Entity) (Print Name) By: Name: Title: Date: (Signature) (Name of Entity) (Print Name) By: Name: Title: Date:
EXHIBIT K TO THE DISCLOSURE DOCUMENT
STATE SPECIFIC ADDENDA TO DISCLOSURE DOCUMENT AND STATE SPECIFIC RIDERS TO FRANCHISE AGREEMENT
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
The Creative World School 2025 Franchise Disclosure Document does not explicitly define the term 'owner' within the provided excerpts. However, Exhibit K includes an 'Owner's Statement' form that requires signatures from individuals, corporations, limited liability companies, or partnerships associated with the franchisee. This form suggests that an owner can be an individual or a business entity.
Item 23 includes a clause regarding the transfer of ownership interests. It states that if a franchisee proposes to transfer a partial interest, Creative World School has the option to purchase or a right of first refusal, which they may exercise only if the proposed transferee is not a current owner or a family member of a current owner. This implies that the term 'owner' refers to those who currently hold an ownership stake in the franchise.
Because the FDD excerpts do not provide a precise definition, prospective franchisees should seek clarification from Creative World School regarding the specific criteria and implications of being considered an 'owner' under the franchise agreement. Understanding this term is crucial, especially concerning transfer rights, obligations, and potential liabilities.