How many successor franchises can a Creative World School franchisee acquire?
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, a franchisee in good standing has the opportunity to acquire up to three successor franchises. Each successor franchise extends the franchise term by an additional ten years, allowing for continued operation under the Creative World School brand. However, these renewals are subject to the franchisor's then-current terms and conditions.
To secure these successor franchises, franchisees must meet specific conditions. These include maintaining the existing site or securing a suitable substitute, ensuring the school complies with the franchisor's current specifications and standards, and signing the then-current franchise agreement along with any ancillary agreements. The franchisor may require general releases, satisfactory completion of training and refresher programs, and payment of a renewal fee.
It is important to note that the terms and conditions of the renewed franchise agreement may differ materially from the original agreement. This means that franchisees need to be prepared for potential changes in operational requirements, fees, or other obligations when seeking to extend their franchise term. Prospective franchisees should carefully consider these factors and discuss them with the franchisor to fully understand the implications of renewing their franchise agreement.