What is the method of payment for the Opening Package Fee for a Creative World School?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure (1) | Low Amount | High Amount | Method Of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|---|
| Opening Package Fee (3) | $275,000 | $500,000 | As Agreed | By agreement with us or our designee | Us, or our Affiliate |
- (3) The Opening Package contains all interior items required to operate the School in accordance with our specifications and standards.
It includes the computer system, all movable fixtures, furniture and equipment, including tables, chairs, desks, cots, cribs and shelving; tricycles; educational equipment; toys, games and puppets; school supplies (such as construction paper, glue and paint); teaching supplies; curriculum; office computers; interior artwork/murals; and smallwares.
Most of the furniture and equipment is imported and therefore subject to tariffs which are currently difficult to forecast.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, the method of payment for the Opening Package Fee, which ranges from $275,000 to $500,000, is 'As Agreed.' This means that the specific payment method will be determined by an agreement between the franchisee and Creative World School or its designee. The payment is due as agreed upon with Creative World School or its affiliate, and it is to be paid to Creative World School or their affiliate.
The Opening Package encompasses all interior items necessary to operate the school in accordance with Creative World School's standards and specifications. This includes a computer system, movable fixtures, furniture, equipment like tables, chairs, desks, cots, cribs, and shelving, as well as tricycles, educational equipment, toys, games, puppets, school supplies, teaching supplies, curriculum, office computers, interior artwork/murals, and smallwares.
Prospective franchisees should discuss the payment terms for the Opening Package Fee with Creative World School to fully understand the available options and to negotiate terms that align with their financial situation. Given that the furniture and equipment are mostly imported and subject to tariffs that are difficult to forecast, understanding the payment schedule and any potential adjustments due to tariff changes is crucial. This will help in accurately budgeting for the initial investment and managing cash flow during the setup phase of the Creative World School franchise.