To whom are the payments for required purchases currently paid by Creative World School franchisees?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
nd supplies, market changes, Discount Preschool's supplier relationships, as well as other factors.
The foregoing required purchases from us or Discount Preschool, in which we are the only supplier, constitutes less than 6% of the cost to establish and build a new School and less than 3% of the cost to operate a School. Currently, all of the foregoing payments for required purchases are paid to Discount Preschool. Our affiliate, Discount Preschool, received $424,299 of its total revenues of $582,317 as shown by its financial statemen
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, franchisees currently make payments for required purchases to Discount Preschool. Discount Preschool is an affiliate of Creative World School. For the year ending December 31, 2024, Discount Preschool received $424,299 from sales to Creative World School franchisees, which represented 73% of Discount Preschool's total revenues of $582,317.
Creative World School franchisees are required to purchase their Opening Package from Creative World School or its affiliate, Discount Preschool. The Opening Package includes the required computer system and software. Franchisees must also purchase teaching supplies, equipment, and curriculum from Creative World School or Discount Preschool during the operation of their school. Additionally, franchisees must pay Creative World School or Discount Preschool for management software and search engine optimization services.
Discount Preschool is the only approved supplier for interior equipment and furniture, including tables, chairs, desks, cots, cribs, shelving, tricycles, educational equipment, toys, games, puppets, school supplies, teaching supplies, curriculum, office computers, interior artwork/murals, and smallwares. Franchisees are required to purchase approximately 95% of the furniture, equipment, and products necessary to operate their Creative World School from Discount Preschool, ensuring that these items meet Creative World School's specifications and standards.