To whom is the initial franchise fee paid when opening 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, which ranges from $75,000 to $80,000, is paid to 'Us,' meaning the franchisor, Creative World School. This payment is due when signing the Franchise Agreement and is typically a lump sum. Note (1) in Item 7 states that all fees payable to Creative World School or their affiliate are non-refundable, except for the deposit.
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 becomes non-refundable once Creative World School and the franchisee approve a site for the school. 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.
In addition to the initial franchise fee, franchisees will also make payments to Creative World School or their affiliate for the Opening Package Fee, which ranges from $275,000 to $500,000, and Systems Standards Fee, which ranges from $1,050 to $1,500 monthly. Franchisees also pay an Accreditation Fee of $2,000 to Creative World School or Suppliers. These fees cover various aspects of setting up and running the Creative World School franchise, including interior items, training, and ongoing system standards.