What does the Franchisee warrant regarding claims against Creative World School in the Release?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
RIDER TO CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC. FRANCHISE AGREEMENT FOR USE IN MARYLAND
This Rider is entered into this, 20 (the "Effective Date"), between CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC., a Florida corporation ("we," "us," "our" or "Franchisor"), with its principal business address at 25110 Bernwood Drive, Suite #104, Bonita Springs, Florida 34135, and , a whose principal business address is (referred to in this Rider as "you," "your" or "Franchisee") and amends the Franchise Agreement between the parties dated as of the Effective Date, (the "Agreement"). 1. Precedence and Defined Terms. This Rider is an integral part of, and is incorporated into, the Agreement. Nevertheless, this Rider supersedes any inconsistent or conflicting provisions of the Agreement. Terms not otherwise defined in this Rider have the meanings as defined in the Agreement. 2. Questionnaires and Acknowledgements. No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise. 3. Acknowledgments. Section 1.02 of the Agreement is deleted in its entirety. 3. General Release. The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. 4. Limitation of Claims. Provided, however, that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise to you. 5. Jurisdiction. Provided, however, that you may bring a lawsuit against us in Maryland for any claims arising under the Maryland Franchise Registration and Disclosure Law. 6. No Waiver. All representations requiring prospective franchisees to assent to a release, estoppel or wavier of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. Intending to be bound, you and we sign and deliver this Rider in 2 counterparts effective on the Agreement Date, regardless of the actual date of signature. CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC. YOU Date: Date:
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, the franchisee's obligations regarding claims against Creative World School depend on the state where the franchise operates. In Maryland, the general release required for renewal, sale, assignment, or transfer does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. Additionally, franchisees can bring lawsuits against Creative World School in Maryland for claims arising under this law, and all representations requiring franchisees to release or waive liability do not apply to liability incurred under the Maryland Franchise Registration and Disclosure Law.
In Virginia, New York, Maryland, and Minnesota, no statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Creative World School. This provision overrides any conflicting terms in other documents related to the franchise agreement.
In Minnesota, franchisees and their owners must execute general releases of claims against Creative World School and its affiliates, officers, directors, employees, agents, successors, and assigns. However, this requirement excludes matters covered under Minnesota Franchise law. Therefore, franchisees should be aware of the specific state laws and how they impact the scope and limitations of any releases they may be required to sign.