Can a Creative World School franchisee grant a security interest or lien on any of the art?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
We use, promote and license certain trademarks, service marks, logos, and other commercial symbols in the operation of Schools, including the trade and service marks "CREATIVE WORLD SCHOOL®," the design only mark described as "CHILDREN AND GLOBE" and other associated logos, designs, artwork and trade dress, which have gained and continue to gain public acceptance and goodwill, and may create, use and license additional trademarks, copyrighted works, Art, service marks and commercial symbols in conjunction with the operation of Schools (collectively, the "Marks"). We grant to persons who meet our qualifications and are willing to undertake the investment and effort, a franchise to own and operate a School offering the products and services we authorize and approve and utilizing the System. You have applied for a franchise to own and operate a School. You and we acknowledge and agree as follows:
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
Based on the 2025 Creative World School Franchise Disclosure Document, the franchisor, Creative World School, uses and licenses certain trademarks, service marks, logos, and other commercial symbols, including artwork, in the operation of its schools. These are referred to as the "Marks."
The FDD does not explicitly state whether a franchisee can grant a security interest or lien on the art. However, the agreement states that Creative World School may create, use, and license additional trademarks, copyrighted works, Art, service marks and commercial symbols in conjunction with the operation of Schools.
Because the FDD does not provide specific details on whether a franchisee can grant a security interest or lien on the art, it is important for a prospective franchisee to seek clarification from Creative World School regarding this matter. Understanding the restrictions on these assets is crucial for assessing the financial and operational aspects of the franchise.