Can a Creative World School franchisee renew or extend their franchise term?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section in | |||
|---|---|---|---|
| Franchise or | |||
| Other | |||
| Provision | Agreement | Summary | |
| a. | Length of the franchise | Section | 20 years |
| term | 2.3 | ||
| b. | Renewal or extension of the term | Section 3 | If you are in good standing, you can acquire 3 successor franchises for additional 10- year terms on our then current terms and conditions |
| c. | Requirements for franchisee to renew or extend | Section 3 | Your renewal rights permit you to remain as a franchisee after the initial term of your franchise agreement expires. However, to remain a franchisee, you must meet all required conditions to renewal, including signing our then-current form of franchise agreement, which may be materially different than the form attached to this disclosure document. |
| Other conditions are: Maintain Site or | |||
| secure substitute Site, bring School into | |||
| compliance with our then current | |||
| specifications and standards, sign new | |||
| Franchise Agreement and ancillary | |||
| agreements, general releases, satisfactory | |||
| completion of training and refresher | |||
| programs and pay renewal fee. | |||
| Upon renewal you may be asked to sign a | |||
| Franchise Agreement with materially | |||
| different terms and conditions than your | |||
| original contract/Franchise Agreement. |
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, a franchisee in good standing has the opportunity to acquire up to three successor franchises, each for an additional 10-year term, based on the then-current terms and conditions set by Creative World School. The initial franchise term for Creative World School is 20 years.
To remain a franchisee and exercise these renewal rights, the franchisee must meet specific conditions. These include signing the then-current form of the franchise agreement, which could differ significantly from the original agreement. Additionally, the franchisee must maintain the site or secure a substitute site, bring the school into compliance with the current specifications and standards of Creative World School, sign new franchise and ancillary agreements, provide general releases, satisfactorily complete required training and refresher programs, and pay a renewal fee.
Prospective franchisees should be aware that the terms and conditions at the time of renewal may be materially different from those of the original franchise agreement. This could impact the financial obligations, operational requirements, and overall relationship with Creative World School. It is important to carefully review the renewal terms and assess their potential impact on the business before committing to an additional term.