What was the net change in the number of franchised Creative World School outlets during 2023?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| 2022 | 22 | 24 | +2 | |
| Franchised | 2023 | 24 | 23 | -1 |
| 2024 | 23 | 24 | +1 | |
| 2022 | 7 | 5 | -2 | |
| Company-Owned(1) | 2023 | 5 | 5 | 0 |
| 2024 | 5 | 5 | 0 | |
| 2022 | 29 | 29 | 0 | |
| Total Outlets | 2023 | 29 | 28 | -1 |
| 2024 | 28 | 29 | +1 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 75–80)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, the net change in the number of franchised outlets during 2023 was a decrease of one location. At the start of 2023, there were 24 franchised locations, and by the end of the year, the number decreased to 23. This indicates that more franchises closed or were terminated than new franchises opened during that period.
For a prospective franchisee, this information is crucial as it provides insight into the stability and growth of the Creative World School franchise system. A decrease in the number of franchised outlets could signal potential challenges within the system, such as difficulties in maintaining profitability or franchisee satisfaction. It is important to note that while the franchised locations decreased, the company-owned locations remained the same.
It would be prudent for a potential franchisee to investigate the reasons behind the net decrease in franchised locations. Understanding whether the closures were due to poor performance, disputes with the franchisor, or other factors can help in assessing the risks and opportunities associated with investing in a Creative World School franchise. Further research and conversations with current and former franchisees are advisable to gain a comprehensive understanding of the franchise's performance and stability.