How long does Creative World School have to cure a breach before the franchisee can terminate the agreement?
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. | |||
| d. | Termination by franchisee | Section 16.1 | If we breach the agreement and do not cure the breach after 60 days notice from you, you may terminate 60 days after you provide us with written notice of termination |
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, a franchisee can terminate the franchise agreement if Creative World School breaches the agreement and fails to cure the breach within a specified timeframe. Specifically, Creative World School has 60 days to cure the breach after receiving written notice from the franchisee. If the breach remains uncured after this 60-day period, the franchisee can then terminate the agreement 60 days after providing Creative World School with written notice of termination.
This means that the termination process, initiated by the franchisee due to Creative World School's breach, involves a two-step notification. First, the franchisee must notify Creative World School of the breach and allow them 60 days to rectify the situation. If the breach persists, the franchisee must then provide a second written notice indicating their intent to terminate the agreement, with the actual termination occurring 60 days after this second notice.
This cure period is a standard practice in franchising, allowing the franchisor an opportunity to correct any issues before the franchisee takes the drastic step of terminating the agreement. It is important for prospective franchisees to understand these termination conditions, as they outline the circumstances under which they can end the franchise relationship if Creative World School fails to meet its obligations. Franchisees should consult the full franchise agreement for a complete understanding of their termination rights and responsibilities.