When must a prospective franchisee pay the site assessment deposit to Creative World School?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 5 INITIAL FEES
Deposit for Site Assessment
We may require prospective franchisees to pay us a deposit of $5,000 (the "Deposit"). We hold and apply the Deposit in accordance with our Deposit Agreement for Site Assessment (the "Site Assessment Deposit Agreement"). A copy of it is attached as Exhibit "B." You must pay the Deposit when you sign the Site Assessment Deposit Agreement. We will only refund a portion of the Deposit to you if you and we both do not sign a Franchise Agreement within 180 days of signing the Site Assessment Deposit Agreement. Solely in that event, we will refund the Deposit to you less the greater of: (i) $2,500; or (ii) our out-of-pocket expenses for time and effort expended in reliance upon your application. Otherwise, it is not refundable, but we apply it in full towards the Initial Franchise Fee, as applicable. The Deposit is uniformly
Source: Item 5 — INITIAL FEES (FDD pages 14–15)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, a prospective franchisee must pay the site assessment deposit of $5,000 when they sign the Site Assessment Deposit Agreement. This deposit is held and applied according to the terms outlined in the agreement, which is included as an exhibit in the FDD.
The deposit is potentially refundable under specific conditions. If both Creative World School and the prospective franchisee do not sign a Franchise Agreement within 180 days of signing the Site Assessment Deposit Agreement, a portion of the deposit will be refunded. The refund will be the deposit amount less the greater of $2,500 or Creative World School's out-of-pocket expenses incurred in reliance on the application.
However, if a Franchise Agreement is signed, the deposit is applied in full towards the Initial Franchise Fee. The FDD specifies that the deposit is uniformly imposed among franchisees who sign a Site Assessment Deposit Agreement, ensuring consistent treatment among potential franchisees. Once a site for the school has been approved by both parties, the deposit becomes non-refundable.