Does inaction by Creative World School waive any of its rights?
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)
According to the 2025 Creative World School Franchise Disclosure Document, specific addenda and riders modify the standard franchise agreement in certain states to protect franchisees' rights. For instance, in New York, Virginia, Maryland, and Minnesota, no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Creative World School. These provisions explicitly override any conflicting terms in the franchise agreement. This ensures that franchisees in these states retain their legal rights and protections regardless of any agreements made during the commencement of the franchise relationship.
In Minnesota, the addendum further stipulates that Creative World School must protect the franchisee's right to use trademarks and indemnify them against losses from claims related to the use of the name. Additionally, franchisees and their owners in Minnesota are required to execute general releases of claims against Creative World School, except for matters covered under Minnesota franchise law. This indicates a balanced approach where franchisees provide releases for certain claims while retaining protection under state franchise laws.
For franchisees in Maryland, the addendum specifies that the general release required for renewal, sale, assignment, or transfer does not apply to liabilities under the Maryland Franchise and Disclosure Law. It also clarifies that claims under Maryland law must be brought within three years after the franchise grant and that franchisees can file lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. These state-specific addenda collectively ensure that franchisees' rights are safeguarded and that Creative World School cannot use standard agreements to circumvent state franchise laws.