Is the initial franchise fee for a Creative World School refundable?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
o sign a Site Assessment Deposit Agreement.
Initial Franchise Fee
We currently charge an initial franchise fee that ranges from $75,000 to $80,000, depending on the number of Creative World School® Businesses you operate (the "Initial Franchise Fee"). Currently, the Initial Franchisee Fee is $80,000 for your first School. If you are a United States armed services veteran who presents satisfactory evidence of an honorable discharge (such as a DD214), the initial fee for your first Creative World® School franchise will be reduced to $75,000. If you are purchasing a second or subsequent School, the Initial Franchise Fee is reduced to $75,000. You must pay the Initial Franchise Fee in a lump sum when you sign the Franchise Agreement, less any Deposit. In consideration for this Initial Franchise Fee, we grant you a franchise to operate your School at a specific location and provide you with initial training. The Initial Franchise Fee is fully earned and nonrefundable. The Initial Franchise Fee is uniformly imposed among franchisees.
Opening Package Fee
You must purchase certain teaching supplies, equipment and curriculum; and other equipment, supplies, fixtures, and materials from us, or our affiliate (the "Opening Package"). You must pay to us, or our designee, a fee (the "Opening Package Fee") in an amount ranging from $275,000 to $500,000 depending on the makeup of the Opening Package and price of its contents, which varies depending on the size of your School and current vendor pricing. The contents of the Opening Package will be determined by us once we have approved the location for your School. The Opening Package Fee is due within 30 days from the date of our invoice, unless we otherwise agree in writing. The Opening Package Fee is not refundable under any circumstances. During 2024 Discount Preschools sold 1 Opening Package.
Accreditation Fee
You must participate in the accreditation program we designate.
Source: Item 5 — INITIAL FEES (FDD pages 14–15)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, the initial franchise fee is generally not refundable. The standard initial franchise fee for the first school is $80,000, but it can be reduced to $75,000 for United States armed services veterans with an honorable discharge or for franchisees purchasing a second or subsequent school. This fee is paid in a lump sum when the Franchise Agreement is signed. In return for the initial franchise fee, Creative World School grants the franchisee the right to operate a school at a specific location and provides initial training.
However, there is a potential refund related to a separate deposit for site assessment. Creative World School may require prospective franchisees to pay a $5,000 deposit for a site assessment. This deposit is held according to a Site Assessment Deposit Agreement. A portion of this deposit may be refundable if a Franchise Agreement is not signed by both parties within 180 days of signing the Site Assessment Deposit Agreement. In that specific case, Creative World School will refund the deposit, but will deduct the greater of $2,500 or their out-of-pocket expenses for time and effort spent processing the application. If the franchisee does proceed with the agreement, the deposit is applied towards the initial franchise fee.
In summary, the initial franchise fee itself is nonrefundable once the Franchise Agreement is signed. However, the $5,000 deposit for site assessment has a conditional refund policy if the agreement is not finalized within the specified timeframe. It is important for prospective franchisees to carefully review the Site Assessment Deposit Agreement to fully understand the conditions under which a portion of the deposit may be refunded.