For a Creative World School franchise, when are the monthly installments of Base Rent due?

According to the 2025 Creative World School Franchise Disclosure Document, royalties are due on the first day of the month following the sale. This means that a Creative World School franchisee is obligated to remit their royalty payments to the franchisor at the beginning of each month, based on the previous month's sales figures.

This arrangement is fairly standard in the franchise industry, as it allows franchisors to receive a consistent revenue stream tied directly to the performance of their franchisees. For a new Creative World School franchisee, it's crucial to factor this monthly royalty payment into their cash flow projections. They need to ensure they have sufficient capital to cover this expense, especially during the initial months of operation when revenue may be lower.

Furthermore, the FDD specifies that these royalties receivable are considered uncollateralized franchisee obligations. This implies that Creative World School does not require any specific asset as security for these payments. However, failure to pay royalties on time could lead to penalties, legal action, or even termination of the franchise agreement, as detailed elsewhere in the FDD. Therefore, maintaining timely royalty payments is essential for a Creative World School franchisee to remain in good standing with the franchisor.