What is the Creative World School franchisee's obligation regarding the Lease?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord warrants and covenants that Tenant shall peacefully and quietly have, hold and enjoy the leased premises for the entire term of this Lease, subject however to the terms, covenants and conditions of this Lease.
In the event Tenant assigns this Lease to a franchisee of Tenant, the following provisions shall apply following such assignment. For purposes of this Section 18, CREATIVE WORLD SCHOOL, INC. shall be referred to as "Franchisor."
- (a) Assignment and Subletting. Landlord's consent shall not be necessary for an assignment or subletting (i) to Franchisor or (ii) to a person or entity which directly or indirectly controls, is controlled by or is under common control with Franchisor or (iii) to any other franchisee of Franchisor. Tenant or Franchisor shall give Landlord notice of any such assignment or subletting prior to such assignment or subletting.
- (b) Default of Tenant. In the event a default occurs at any time during the term of the Lease, Landlord shall provide notice of such default to Franchisor by certified mail, return receipt requested or by nationally recognized overnight courier service to the following address:
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, a franchisee's obligations regarding the lease primarily concern assignment, subletting, and default scenarios. If a franchisee assigns the lease to another franchisee, Creative World School, or an entity under common control with the franchisor, the landlord's consent is not required. However, the franchisee or Creative World School must notify the landlord before any such assignment or subletting takes place. This simplifies the process of transferring the lease within the Creative World School network.
In the event of a default on the lease terms, the landlord is required to notify Creative World School. This notification must be sent via certified mail with return receipt requested or through a nationally recognized overnight courier service. This provision ensures that Creative World School is informed of any issues with the franchisee's lease obligations, giving them an opportunity to intervene or assist in resolving the default. This is a protective measure for both the franchisor and the franchisee, as it allows for potential mitigation of lease-related problems.
The landlord warrants that the tenant (franchisee) shall have peaceful and quiet enjoyment of the leased premises for the entire term of the lease, subject to the terms, covenants, and conditions of the lease. This clause ensures that the franchisee can operate their Creative World School without undue interference from the landlord, provided they adhere to the lease agreement. This is a standard provision in commercial leases, offering the franchisee a degree of security and stability in their business location.