Where in the Creative World School franchise agreement can I find the definition of 'cause' for termination?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| g. | Provision "Cause" defined – | Section in Franchise or Other Agreement Section 16.2 | Summary You have 5 days to cure health, safety or |
|---|---|---|---|
| curable defaults | sanitation law violations and education, licensure or certification, ordinance or regulation violations; 10 days to cure monetary defaults to us or our affiliates or approved suppliers; 30 days to cure noncompliance with any provision of the Franchise Agreement or the System Standards | ||
| h. | "Cause" defined – non curable defaults | Section 16.2 | Non-curable defaults include material misrepresentation or omission, failure to complete training to our satisfaction; failure to open within 12 months of construction approval; failure to commence construction of the School within 3 months; abandonment; unapproved transfers; conviction of, or a plea of guilty or no contest to, a felony or serious criminal misconduct or offense that we believe to indicate moral turpitude or is adverse to the Marks, indicates breach of trust, or which makes parents uneasy, uncertain or afraid to permit you to be alone with their children, is likely to adversely affect your reputation, our reputation or that of any other School; dishonest, criminal or unethical conduct; loss of the Site; unauthorized use or disclosure of the Manuals or confidential information; failure to pay taxes; failure to cure breach or default under any other agreement with us or our affiliates; repeated defaults (even if cured); an assignment for the benefit of creditors or written admission of insolvency or inability to pay debts as they become due |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 53–57)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, the definition of 'cause' for termination by the franchisor can be found in Section 16.2 of the Franchise Agreement. The FDD outlines two categories of 'cause': curable defaults and non-curable defaults.
The document specifies that if a franchisee has health, safety, or sanitation law violations, or violations of education, licensure, certification, ordinance, or regulation, they have 5 days to correct the issue. For monetary defaults to Creative World School, its affiliates, or approved suppliers, the franchisee has 10 days to cure the default. For noncompliance with any provision of the Franchise Agreement or the System Standards, the franchisee has 30 days to correct the issue.
The 2025 Creative World School FDD also lists non-curable defaults in Section 16.2. These include material misrepresentation or omission, failure to complete training to the franchisor's satisfaction, failure to open within 12 months of construction approval, failure to commence construction of the School within 3 months, abandonment, unapproved transfers, conviction of a felony, dishonest, criminal or unethical conduct, loss of the Site, unauthorized use or disclosure of the Manuals or confidential information, failure to pay taxes, failure to cure breach or default under any other agreement with Creative World School or its affiliates, repeated defaults (even if cured), or an assignment for the benefit of creditors.