To whom is the initial franchise fee paid 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 the 2025 Creative World School Franchise Disclosure Document, the initial franchise fee is paid to 'Us,' which refers to the franchisor, Creative World School. The initial franchise fee ranges from $75,000 to $80,000 and is due when signing the Franchise Agreement.
Creative World School may require a $5,000 deposit when a prospective franchisee applies. This deposit is credited towards the initial franchise fee upon signing the Franchise Agreement. However, the deposit is generally non-refundable once a site for the school has been approved. If a Franchise Agreement is not signed within 180 days after signing the Site Assessment Deposit Agreement, Creative World School will refund the deposit, less the greater of $2,500 or their out-of-pocket expenses.
It is important to note that all fees payable to Creative World School or its affiliates are non-refundable, except for the deposit under the specific conditions mentioned. This means that once the franchise agreement is signed and the initial franchise fee is paid, it is generally non-refundable, regardless of whether the franchisee proceeds with opening the school. Prospective franchisees should carefully consider their financial situation and conduct thorough due diligence before signing the Franchise Agreement and paying the initial franchise fee to Creative World School.