Can the Creative World School franchise agreement be terminated before the 20-year term expires?

According to the 2025 Creative World School Franchise Disclosure Document, the franchise agreement has a term of 20 years from the agreement date. However, the agreement can be terminated before the end of the 20-year term.

It is important for a prospective franchisee to understand the conditions under which either party can terminate the agreement early. This includes understanding what constitutes a breach of contract and what steps must be taken to remedy such a breach. Franchise agreements typically outline specific performance standards and operational requirements that franchisees must meet to avoid termination.

Additionally, the FDD includes state-specific addenda for Maryland, Illinois, New York, and Virginia, which may modify the general termination clauses of the franchise agreement. For example, the Illinois addendum references Section 19 of the Illinois Franchise Disclosure Act, which sets forth the conditions and notice requirements for franchise termination in that state. Similarly, the Maryland addendum states that the provision of the Franchise Agreement that provides for termination upon bankruptcy of the franchisee may not be enforceable under federal bankruptcy law. A prospective franchisee should carefully review these state-specific provisions to understand how they may affect their rights and obligations.

Upon termination or expiration of the Creative World School franchise agreement, the franchisee must immediately cease using any of the franchisor's confidential information and return all copies of the manual and any other confidential materials. Furthermore, for a period of two years after termination or expiration, the franchisee and their owners are restricted from having any direct or indirect interest in a Competitive Business operating at the Site, within a 20-mile radius of the Site, or within a 20-mile radius of any other School that is in operation or under construction.