What is the process for resolving disputes concerning the Agreement to Lease for Creative World School?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS AGREEMENT REQUIRES CERTAIN DISPUTES TO BE SUBMITTED TO BINDING
ARBITRATION.
In the event Tenant assigns this Lease to a franchisee of Tenant, the following provisions shall apply following such assignment. For purposes of this Section 18, CREATIVE WORLD SCHOOL, INC. shall be referred to as "Franchisor."
(a) Assignment and Subletting. Landlord's consent shall not be necessary for an assignment or subletting (i) to Franchisor or (ii) to a person or entity which directly or indirectly controls, is controlled by or is under common control with Franchisor or (iii) to any other franchisee of Franchisor. Tenant or Franchisor shall give Landlord notice of any such assignment or subletting prior to such assignment or subletting.
(b) Default of Tenant. In the event a default occurs at any time during the term of the Lease, Landlord shall provide notice of such default to Franchisor by certified mail, return receipt requested or by nationally recognized overnight courier service to the following address:
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- Limitations of Claims. Section 20.06 is amended so that any and all claims arising out of this agreement or the relationship among you and us must be made by written notice to the other party within 3 years from the occurrence of the facts giving rise to such claim (regardless of when it becomes known).
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- Governing Law. The following sentence is added at the end of Section 20.07:
MINN. STAT. §80C.21 AND MINN. RULE 2860.4400J PROHIBIT US FROM REQUIRING LITIGATION TO BE CONDUCTED OUTSIDE MINNESOTA. IN ADDITION, NOTHING IN THE DISCLOSURE DOCUMENT OR AGREEMENT CAN ABROGATE OR REDUCE ANY OF YOUR RIGHTS AS PROVIDED FOR IN MINNESOTA STATUTES, CHAPTER 80C, OR YOUR RIGHTS TO ANY PROCEDURE, FORUM, OR REMEDIES PROVIDED FOR BY THE LAWS OF THE JURISDICTION.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
Based on the 2025 Creative World School Franchise Disclosure Document, certain disputes are required to be submitted to binding arbitration. In the event that the Tenant (franchisee) assigns the lease to another franchisee, the landlord's consent is not required for the assignment or subletting to Creative World School, Inc., to an entity that controls or is controlled by Creative World School, or to another Creative World School franchisee. Creative World School or the franchisee must provide the Landlord notice of any such assignment or subletting prior to it taking place.
If a default occurs during the lease term, the landlord must notify Creative World School of the default via certified mail, return receipt requested, or through a nationally recognized overnight courier service. This notice provision ensures that Creative World School is informed of any issues with the franchisee's lease obligations, providing an opportunity for the franchisor to intervene or assist in resolving the default.
For franchisees in Minnesota, the FDD specifies that Minnesota law prohibits Creative World School from requiring litigation to be conducted outside of Minnesota. Additionally, the franchise agreement cannot reduce any of the franchisee's rights as provided under Minnesota statutes or their rights to any procedure, forum, or remedies provided by the laws of the jurisdiction. Furthermore, any and all claims arising out of the agreement or the relationship between the franchisee and Creative World School must be made by written notice to the other party within 3 years from the occurrence of the facts giving rise to such claim, regardless of when it becomes known.