What is the nature of the assignment of telephone numbers and URLs from the franchisee to Creative World School?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Conditional Assignment: FOR VALUE RECEIVED, Franchisee hereby assigns to Franchisor: (a) those certain telephone numbers and regular, classified or other telephone directory listings (collectively, the "Telephone Numbers and Listings"); and (b) those certain Internet website addresses ("URLs") associated with Franchisor's trade and service marks and used from time to time in connection with the operation of the School. This Assignment is for collateral purposes only and, except as specified herein, Franchisor shall have no liability or obligation of any kind arising from or in connection with this Assignment, unless Franchisor shall notify the telephone company and/or the listing agencies with which Franchisee has placed telephone directory listings (all such entities are collectively referred to herein as "Telephone Company") and/or Franchisee's Internet service provider ("ISP") to effectuate the assignment pursuant to the terms hereof.
Upon termination or expiration of the Franchise Agreement (without extension) for any reason, Franchisor shall have the right and is hereby empowered to effectuate the assignment of the Telephone Numbers and Listings and the URLs, and, in such event, Franchisee shall have no further right, title or interest in the Telephone Numbers and Listings and the URLs, and shall remain liable to the Telephone Company and the ISP for all past due fees owing to the Telephone Company and the ISP on or before the effective date of the assignment hereunder.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, franchisees conditionally assign their telephone numbers, directory listings, and internet website addresses (URLs) to the franchisor. This assignment serves as collateral, meaning Creative World School Franchising Company, Inc. has no obligations related to the assignment unless they notify the phone company or internet service provider to enact the assignment terms.
Upon the termination or expiration of the Franchise Agreement, Creative World School has the right to execute the assignment of the telephone numbers and URLs. In this event, the franchisee forfeits all rights to these telephone numbers, listings, and URLs. The franchisee remains responsible for any outstanding fees owed to the telephone company and internet service provider up to the assignment date.
This conditional assignment is a fairly standard practice in franchising. It ensures that upon termination, the franchisor can maintain continuity of the business and customer relationships. Prospective Creative World School franchisees should ensure they understand their obligations for outstanding fees and the process for transferring these assets back to the franchisor upon the end of the franchise agreement.