How are Marketing Contributions for Creative World School payable?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to contribute to the Marketing Fund such amounts that we prescribe from time to time (the "Marketing Contributions"), not more than 1% of your Gross Revenues per week (except as described below), payable in the same manner as the Royalty.
We reserve the right to defer or reduce contributions of a School franchisee and, upon 30 days' prior written notice to you, to reduce or suspend contributions to and operations of the Marketing Fund for one or more periods of any length and to terminate (and, if terminated, to reinstate) the Marketing Fund.
We will not assess Marketing Contributions until at least 50 Schools are open and operating.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Marketing Fund. These Marketing Contributions must not exceed 1% of the Gross Revenues each week. The contributions are payable in the same manner as the Royalty fees.
Creative World School retains the right to defer or reduce a franchisee's Marketing Contributions. They can also reduce or suspend contributions to, and operations of, the Marketing Fund for any period, with 30 days' prior written notice. The Marketing Fund can also be terminated and reinstated by Creative World School.
It's important to note that Creative World School will not collect Marketing Contributions until at least 50 Schools are open and operating. This condition provides some financial relief to new franchisees during the initial stages of their business. Prospective franchisees should confirm the current number of operating schools to determine when the marketing contributions will commence.
Understanding the specifics of royalty payments is crucial, as the marketing contributions will follow the same payment method. Franchisees should clarify with Creative World School the exact procedures and schedule for royalty payments to ensure compliance with the franchise agreement.