What is the method of payment for the Systems Standards 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 |
|---|---|---|---|---|---|
| Initial Franchise Fee (1)(2) | $75,000 | $80,000 | Lump Sum | Signing Franchise Agreement | Us |
| Building / Leasehold Improvements, not including landscaping, irrigation, sidewalk, trail and fencing (4) | $3,500,000 | $6,000,000 | As Agreed | By agreement with provider | Lessors, Contractors, Subs |
| Landscaping, Irrigation, Sidewalk, Trail, Fencing, Playground Equipment, and Playground Surfacing (4) | $800,000 | $1,000,000 | Lump Sum or Installments | As Incurred | Third Parties |
| Impact Fees and Utility Connection Fees | $100,000 | $500,000 | Lump Sum | Prior to construction | City/County |
| Land Costs (5) | $750,000 | $1,500,000 | As Agreed | By agreement with provider | Sellers |
| Architectural/Enginee ring, Legal & Accounting Services (6) | $175,000 | $250,000 | As Agreed | By agreement with provider | Suppliers |
| Training Expenses | $10,000 | $20,000 | As Agreed | As Incurred | Suppliers |
| (lodging, food, travel) | |||||
| Opening Package Fee (3) | $275,000 | $500,000 | As Agreed | By agreement with us or our designee | Us, or our Affiliate |
| Accreditation Fee | $2,000 | $2,000 | Lump Sum | As Incurred | Us or Suppliers |
| Systems Standards | $1,050 | $1,500 | Lump Sum | Monthly | Us |
| Fee (3 months) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, the Systems Standards Fee, which ranges from $1,050 to $1,500 for three months, is paid via a lump sum on a monthly basis to the franchisor, Creative World School. This fee is part of the initial investment required to start the franchise.
This means that a new Creative World School franchisee must budget for this recurring monthly expense from the outset. The Systems Standards Fee contributes to the overall initial investment, which ranges from $5,767,050 to $10,143,500. It is important to note that this fee covers the first three months of operation, and franchisees should anticipate ongoing payments of a similar amount.
Prospective franchisees should carefully consider this monthly obligation when evaluating the financial feasibility of the franchise. Understanding the specific services and support covered by the Systems Standards Fee is crucial for assessing its value. Franchisees should inquire about what standards are covered under this fee.
It is also important to note that all fees payable to Creative World School or its affiliates are non-refundable, except for the deposit. Therefore, franchisees should ensure they fully understand the terms and conditions associated with the Systems Standards Fee before committing to the franchise.