When is the initial franchise fee due for a Creative World School?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure (1) | Low Amount | High Amount | Method Of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee (1)(2) | $75,000 | $80,000 | Lump Sum | Signing Franchise Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, the initial franchise fee, ranging from $75,000 to $80,000, is due upon signing the Franchise Agreement. This fee is paid as a lump sum directly to Creative World School. Prospective franchisees should be aware of this payment schedule as they plan their initial investment.
Creative World School may, at its discretion, require a $5,000 deposit when a prospective franchisee applies. This deposit is credited towards the initial franchise fee once the Franchise Agreement is signed. However, the deposit may be partially or fully non-refundable if a Franchise Agreement is not signed within 180 days of the Site Assessment Deposit Agreement, or once a site has been approved.
Understanding the timing of the initial franchise fee payment is crucial for budgeting and financial planning. Franchisees need to ensure they have the necessary funds available when the Franchise Agreement is ready to be signed. The initial franchise fee is only one component of the total estimated initial investment, which ranges from $5,767,050 to $10,143,500, so prospective franchisees should carefully review all the costs involved.