Is the Franchisor a third-party beneficiary of the Creative World School franchise agreement?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
Based on the 2025 Creative World School Franchise Disclosure Document, several addenda and riders to the franchise agreement include clauses that prevent franchisees from disclaiming reliance on statements made on behalf of the Franchisor. Specifically, these clauses ensure that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by Creative World School. These provisions are included in riders for use in Illinois, Virginia, Maryland, and New York. These riders supersede any conflicting terms in the standard franchise agreement.
For a prospective Creative World School franchisee, this means that the franchise agreement is structured to protect the franchisor's interests by preventing franchisees from later claiming they were not aware of or did not rely on statements made by the franchisor during the franchise sales process. This could limit a franchisee's ability to bring certain types of claims against Creative World School in the future.
It is important for potential franchisees to carefully review all riders and addenda applicable to their specific state, as these documents modify the standard franchise agreement and may contain provisions that affect their rights and obligations. Franchisees should seek legal counsel to fully understand the implications of these clauses and how they may impact their relationship with Creative World School.