What is the length of each renewal term for a Creative World School franchise?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section in | |||
|---|---|---|---|
| Franchise or | |||
| Other | |||
| Provision | Agreement | Summary | |
| a. | Length of the franchise | Section | 20 years |
| term | 2.3 | ||
| b. | Renewal or extension of the term | Section 3 | If you are in good standing, you can acquire 3 successor franchises for additional 10- year terms on our then current terms and conditions |
| c. | Requirements for franchisee to renew or extend | Section 3 | Your renewal rights permit you to remain as a franchisee after the initial term of your franchise agreement expires. However, to remain a franchisee, you must meet all required conditions to renewal, including signing our then-current form of franchise agreement, which may be materially different than the form attached to this disclosure document. |
| Other conditions are: Maintain Site or | |||
| secure substitute Site, bring School into | |||
| compliance with our then current | |||
| specifications and standards, sign new | |||
| Franchise Agreement and ancillary | |||
| agreements, general releases, satisfactory | |||
| completion of training and refresher | |||
| programs and pay renewal fee. | |||
| Upon renewal you may be asked to sign a | |||
| Franchise Agreement with materially | |||
| different terms and conditions than your | |||
| original contract/Franchise Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 53–57)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, franchisees in good standing have the opportunity to obtain three successor franchises, each lasting for an additional 10-year term. These renewals are based on the terms and conditions in place at the time of renewal. This means that the agreement and standards could be different from the original franchise agreement.
To remain a franchisee, certain conditions must be met. These include maintaining the current site or securing a suitable substitute, ensuring the school complies with the current specifications and standards set by Creative World School, and signing the then-current franchise agreement along with any related ancillary agreements. Franchisees must also provide general releases, complete any required training or refresher programs to a satisfactory standard, and pay the renewal fee.
It is important to note that upon renewal, Creative World School may require franchisees to sign a franchise agreement with terms and conditions that differ materially from the original contract. This is a fairly standard practice in franchising, as brands evolve and update their systems over time. Prospective franchisees should carefully consider these renewal terms and the potential for changes in the franchise agreement when evaluating the long-term prospects of a Creative World School franchise.