What is the minimum character requirement for the proposed transferee of a Creative World School franchise?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
The proposed transferee and its direct and indirect owners must be individuals of good character and otherwise meet our then applicable standards for School franchisees.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, if a franchisee wishes to transfer their franchise, the proposed transferee and their direct and indirect owners must be individuals of good character and meet the then-applicable standards for Creative World School franchisees.
This means that Creative World School has the right to assess the character of anyone seeking to take over a franchise. This is a fairly standard practice in franchising, as franchisors want to ensure that new franchisees uphold the brand's reputation and meet their operational standards. The FDD does not specify objective criteria for "good character" but rather leaves it to Creative World School's discretion based on their standards at the time of the proposed transfer.
For a prospective franchisee, this implies that if they plan to sell their franchise in the future, the pool of potential buyers could be limited to those who meet Creative World School's character standards. It also means that the franchisor has significant control over who can become a franchisee within their system, maintaining consistency and quality across all locations. Franchisees looking to transfer their franchise should ensure that potential transferees are likely to meet these subjective standards to avoid delays or rejection of the transfer.