What is the 'Lease' referring to in the Creative World School lease agreement?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
SECTION 17 QUIET ENJOYMENT
Landlord warrants and covenants that Tenant shall peacefully and quietly have, hold and enjoy the leased premises for the entire term of this Lease, subject however to the terms, covenants and conditions of this Lease.
SECTION 18 RIGHTS OF FRANCHISOR
In the event Tenant assigns this Lease to a franchisee of Tenant, the following provisions shall apply following such assignment. For purposes of this Section 18, CREATIVE WORLD SCHOOL, INC. shall be referred to as "Franchisor."
- (a) Assignment and Subletting. Landlord's consent shall not be necessary for an assignment or subletting (i) to Franchisor or (ii) to a person or entity which directly or indirectly controls, is controlled by or is under common control with Franchisor or (iii) to any other franchisee of Franchisor. Tenant or Franchisor shall give Landlord notice of any such assignment or subletting prior to such assignment or subletting.
- (b) Default of Tenant. In the event a default occurs at any time during the term of the Lease, Landlord shall provide notice of such default to Franchisor by certified mail, return receipt requested or by nationally recognized overnight courier service to the following address:
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, the 'Lease' refers to the agreement between the landlord and the tenant (franchisee) for the premises where the Creative World School will operate. The FDD outlines several provisions related to this lease, particularly concerning the rights and obligations of the franchisee (as the tenant), the franchisor, and the landlord.
Specifically, the FDD addresses scenarios where the franchisee might assign the lease to another party. Landlord consent is not required for assignments or subletting to Creative World School, to entities controlled by or under common control with the franchisor, or to any other Creative World School franchisee. The franchisee or franchisor must notify the landlord of any such assignment or subletting before it occurs.
Furthermore, the FDD details the franchisor's rights in the event of a tenant default. If the franchisee defaults on the lease, the landlord must notify Creative World School of the default via certified mail or overnight courier service. Additionally, upon termination of the Franchise Agreement, Creative World School has the option to purchase the school, including the leasehold rights to the site. The franchisee may be required to assign the leasehold interest to Creative World School or its designee, or enter into a sublease for the remainder of the lease term.