What radius around a Creative World School location is covered by the competitive restriction?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Accordingly, you and we agree as follows:
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- Confidentiality. You will: (i) not use the Confidential Information in any other business or capacity; (ii) maintain the absolute confidentiality of the Confidential Information during and after the term of this Agreement; (iii) not make unauthorized copies of any portion of the Confidential Information disclosed in tangible or nontangible form; and (iv) comply with all procedures we prescribe from time to time to prevent unauthorized use or disclosure of the Confidential Information.
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- Competitive Restrictions. While you are our owner or manager and for 2 years afterwards neither you nor your affiliates will have any direct or indirect interest (e.g., through a spouse, child or other immediate family member) as a disclosed or beneficial owner, investor,
partner, director, officer, employee, consulting, member, manager, representative or agent or in any other capacity, in any Competitive Business operating: (a)
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Creative World School does not specify a defined radius for the competitive restriction. Instead, it states that while an owner or manager is affiliated with Creative World School and for two years after, they cannot have a direct or indirect interest in a Competitive Business. The passage ends abruptly at this point, so the geographic scope of what constitutes a competitive business is not defined in this excerpt.
Because the radius is not defined, prospective franchisees should carefully review the full franchise agreement and discuss the definition of "Competitive Business" with Creative World School. Understanding what constitutes a competitive business and its geographic limitations is crucial for assessing the potential impact of the non-compete clause on future business opportunities.
It is common for franchise agreements to include non-compete clauses that restrict franchisees from operating similar businesses within a certain radius of the franchised location, both during the term of the franchise agreement and for a period after termination. The absence of a specified radius in this excerpt is unusual, so further clarification from Creative World School is essential.