Does Creative World School negotiate purchase arrangements with suppliers for the benefit of franchisees?

According to Creative World School's 2025 Franchise Disclosure Document, Creative World School does not negotiate purchase arrangements with suppliers for the benefit of franchisees. However, the FDD states that its affiliate, Discount Preschool, negotiates with suppliers to obtain favorable pricing on certain items that franchisees must purchase. Discount Preschool also provides procurement, coordination, facilitation, and other services in dealing with suppliers. In return for these services, Discount Preschool may receive rebates on purchases made by franchisees. During the fiscal year ending December 31, 2024, Discount Preschool did not receive any revenue, rebates, or other consideration based on required purchases or leases by franchisees from approved suppliers.

This means that while Creative World School itself does not directly negotiate deals for franchisees, its affiliate, Discount Preschool, actively works to secure better pricing and terms with suppliers. This could potentially lead to cost savings for franchisees on required purchases. However, the actual discounts offered by Discount Preschool, if any, will depend on various factors, including the availability of equipment and supplies, market changes, and Discount Preschool's supplier relationships.

Prospective franchisees should be aware that while Discount Preschool aims to provide cost savings, these savings are not guaranteed and can fluctuate. It is important to understand the relationship between Creative World School and Discount Preschool and how this arrangement may impact the overall cost of operating the franchise. Franchisees should inquire about the specific types of discounts and rebates that Discount Preschool typically secures and how these are passed on to franchisees.