Are Creative World School franchisees charged for initial samples of advertising materials?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ensure that expenditures by the Marketing Fund in or affecting any geographic area are proportionate or equivalent to the contributions to the Marketing Fund by Schools operating in that geographic area or that any School will benefit directly or in proportion to its contribution to the Marketing Fund from the development of advertising and marketing materials or the placement of advertising. Except as expressly provided in this Section, we assume no direct or indirect liability or obligation to you with respect to collecting amounts due to the Marketing Fund.
12.05 Advertising and Promotion. You agree that any advertising, promotion and marketing you conduct will be completely clear and factual and not misleading and conform to the highest standards of ethical marketing and the promotion policies which we prescribe from time to time. Samples of all advertising, promotional and marketing materials which we have not prepared or previously approved must be submitted to us for approval before you use them. If you do not receive written disapproval within 30 days after our receipt of such materials, we will be deemed to have given the required approval. You may not use any advertising or promotional materials that we have disapproved.
In addition to your required Marketing Contributions and the required grand opening advertising expenditures of $7,000 to $15,000, you are obligated to allocate 0.5% of your Gross Revenues quarterly for advertising and promotion of the School. We may review your books and records relating to your expenditures for such advertising and promotion. If we determine that you have not spent the r
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, franchisees are required to submit advertising, promotional, and marketing materials that Creative World School has not prepared or previously approved for the franchisor's approval before use. If the franchisee does not receive written disapproval within 30 days after receipt of such materials, Creative World School will be deemed to have given the required approval. The FDD does not specify whether Creative World School charges franchisees for initial samples of advertising materials.
However, the franchisee is obligated to allocate 0.5% of their Gross Revenues quarterly for advertising and promotion of the School, in addition to required Marketing Contributions and grand opening advertising expenditures of $7,000 to $15,000. Creative World School may review the franchisee's books and records relating to expenditures for such advertising and promotion. If Creative World School determines that the franchisee has not spent the requisite amounts, they may require the franchisee to pay the unexpended amounts into the Marketing Fund.
If a local advertising cooperative is established, the franchisee will be required to contribute to it an amount determined by the local advertising cooperative not more than 1% of their weekly Gross Revenues. There currently are no franchisee advertising councils or local advertising cooperatives that advise Creative World School on advertising policies. Creative World School reserves the right to establish an advisory council of franchisees that does advise them on advertising policies and other matters.
Because the FDD does not explicitly state whether Creative World School charges franchisees for initial advertising samples, prospective franchisees should clarify this point with the franchisor during their due diligence. Understanding these costs is essential for accurate financial planning.