What is the Creative World School franchisee's obligation regarding compliance with System Standards?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
equired licenses and permits; adhering to good business practices; observing high standards of honesty, integrity, fair dealing and ethical business conduct in all dealings with customers, suppliers and us; and notifying us if any action, suit or proceeding is commenced against you or the School; and
- (o) regulation of such other aspects of the operation and maintenance of the School that we determine from time to time to be useful to preserve or enhance the efficient operation, image or goodwill of the Marks and Schools.
You agree that System Standards prescribed from time to time in the Manual, or otherwise communicated to you in writing or other tangible form, constitute provisions of this Agreement as if fully set forth. All references to this Agreement include all System Standards as periodically modified.
11.03 Modification of System Standards. We may periodically modify System Standards, which may accommodate regional or local variations as we determine. Such modifications may obligate you to invest additional capital in the School ("Capital Modifications") and/or incur higher operating costs. However, such modifications will not alter your fundamental status and rights under this Agreement. We will not obligate you to make any Capital Modifications when such investment cannot in our reasonable judgment be amortized during the remainder of the Term, plus all eligible successor periods, unless we agree to extend the term of your franchise so that such additional investment, in our reasonable judgment, may be amortized; unless such investment is necessary in order to comply with applicable laws. We agree to give you 90 days to comply with Capital Modifications we require. However, if a Capital Modification requires an expenditure of more than $10,000 we agree to give you 180 days from the date such request is made to comply with such Capital Modification. You are obligated to comply with all modifications to System Standards, including Capital Modifications, within the time period we specify. The time periods and limits on Capital Modifications described in this Section will not apply to our requirements that, during Construction, you meet all of our System Standards for Construction, which may be modified by us during such Construction, upon our notice to you. In no event will we require you to spend in excess of 25% of our hi
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, franchisees must adhere to the System Standards outlined in the franchise agreement. These standards, which may be modified periodically, are considered provisions of the agreement as if fully detailed within it. The System Standards are prescribed in the manuals or communicated in writing or other tangible forms.
The Creative World School franchise agreement allows for modifications to System Standards, potentially to accommodate regional or local variations. These modifications may require franchisees to invest additional capital in the school or incur higher operating costs. However, these changes will not alter the franchisee's fundamental status and rights under the agreement.
Creative World School will not mandate capital modifications unless the investment can be reasonably amortized during the remaining term and successor periods, or if an extension is agreed upon, or if the investment is necessary to comply with applicable laws. Franchisees will be given 90 days to comply with capital modifications, or 180 days if the expenditure exceeds $10,000. Franchisees are obligated to comply with all modifications to System Standards within the specified time. During construction, franchisees must meet all System Standards for construction, which may be modified with notice. The total capital modifications required during the term will not exceed 25% of the high estimate of leasehold improvements, furniture, fixtures, and equipment costs as stated in the Franchise Disclosure Document.
Creative World School franchisees must maintain the school's interior and exterior, including the surrounding area, to the highest standards of cleanliness, orderliness, safety, and sanitation. Franchisees must also comply with the upkeep requirements established in the manuals and by federal, state, and local laws.