Does the Creative World School lease bind the successors and assigns of the parties?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Binding Agreements: This Assignment and all provisions hereof shall be binding upon the Franchisor and the Franchisee, their successors, assigns and legal representatives and all other persons or entities claiming under them or through them, or either of them, and the words "Franchisor" and "Franchisee" when used herein shall include all such persons and entities and any others liable for payment of amounts under the Lease or the Franchise Agreement. All individuals executing on behalf of corporate entities hereby represent and warrant that such execution has been duly authoriz
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, the lease agreement is binding upon the franchisor and franchisee, including their successors, assigns, and legal representatives. This means that if either the Creative World School franchisee or the franchisor transfers their rights or obligations under the lease to another party (such as through a sale of the franchise or the business), the new party is also bound by the terms of the original lease agreement. This ensures that the lease obligations continue regardless of changes in ownership or management.
This provision also extends to any individuals or entities claiming under or through the franchisor or franchisee, further solidifying the binding nature of the lease. The terms 'Franchisor' and 'Franchisee' include all persons and entities liable for payments under the lease or the Franchise Agreement, clarifying that responsibility for financial obligations remains even with changes in representation or ownership.
For a prospective Creative World School franchisee, this clause provides both security and potential constraints. It ensures that the lease terms remain consistent even if the property owner or the franchise changes hands, offering stability. However, it also means that the franchisee cannot easily escape the lease obligations by transferring the franchise without ensuring the new franchisee is fully aware of, and willing to accept, the lease terms. Therefore, careful consideration of the lease terms is crucial before entering into the franchise agreement.