Is franchisee approval required for Creative World School to transfer the franchise agreement?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
• If Franchisee is proposing to transfer a partial interest in Franchisee and Franchisor has an option to purchase or a right of first refusal with respect to that partial interest, Franchisor may exercise such option or right only if the proposed transferee is not a current owner or family member of a current owner of Franchisee. If the Franchisor's consent is required for any transfer (full or partial), Franchisor will not unreasonably withhold such consent. In the event of an approved transfer of the franchise interest or any portion thereof, the transferor will not be liable for the actions of the transferee franchisee.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, if a franchisee proposes to transfer a partial interest in the franchise, Creative World School has an 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 of the franchisee.
The FDD states that if Creative World School's consent is required for any transfer, whether full or partial, the franchisor will not unreasonably withhold such consent. This implies that franchisee approval is indeed required for transfers of the Creative World School franchise agreement.
In the event that a transfer of the franchise interest or any portion thereof is approved, the transferor will not be held liable for the actions of the transferee franchisee. This provision protects the original franchisee from liabilities caused by the new franchisee after the transfer has been completed and approved.