Does Creative World School have an obligation to lease or sublease the Site to the franchisee?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
4.02 Lease of Site.
- (a) Sublease From Us: We may, but are not obligated to, lease or sublease the Site to you.
If we do so, you agree to sign our then-current form of lease or sublease.
If we sublease the Site to you, we may charge a rent that exceeds the cost of rent we pay under our master lease agreement for the Site.
- (b) Other Lease of Site: If you want to lease the Site from someone other than us, you agree to deliver copies of the proposed lease agreement and related documents to us prior to signing them.
You agree not to sign any lease agreement or related documents unless we have previously approved them.
Additionally, before entering into such a lease, you and the lessor must sign our then-current form of Conditional Assignment of Lease Agreement (the "Lease Assignment").
You will give the lessor our forms of the Lease Assignment when you begin discussions with the prospective lessor.
- (c) Lease Approval: You agree to obtain our approval of the lease of the Site before you sign it, or any renewal of it.
You agree to deliver a copy of the signed lease to us within 15 days after its execution along with the Lease Assignment.
You agree not to sign any lease or renewal of a lease unless you have also obtained the Lease Assignment signed by the lessor.
(d) Mandatory Lease Terms: We may require that the lease or any renewal contain certain provisions, including the following:
(i) a provision which expressly permits the lessor of the Site to provide us with all revenue and other information it may have related to the operation of your School as we may request;
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, Creative World School is not obligated to lease or sublease a site to the franchisee. The FDD states that Creative World School may, but is not required to, lease or sublease the site to the franchisee. If Creative World School does sublease the site, they may charge rent exceeding their own costs under the master lease agreement.
If a franchisee chooses to lease a site from a third party, they must provide Creative World School with copies of the proposed lease agreement and related documents for approval before signing. Franchisees cannot sign any lease agreement without prior approval from Creative World School. Additionally, both the franchisee and the lessor must sign Creative World School's current form of Conditional Assignment of Lease Agreement before the franchisee enters into such a lease.
Creative World School also requires franchisees to obtain their approval for any lease renewals. Franchisees must provide Creative World School with a copy of the signed lease and the Lease Assignment within 15 days of execution. Creative World School may also mandate that specific provisions be included in the lease or any renewal, such as allowing the lessor to provide Creative World School with revenue and other operational information about the school.