What is the relationship between the Creative World School Franchise Agreement and the loan note?

According to the 2025 Creative World School Franchise Disclosure Document, a loan note may be subject to the terms and conditions of the Creative World School Franchise Agreement. The loan note represents a loan that accrues interest from the date of the note, at a rate and time specified later, on the unpaid balance. The specific date of the Creative World School Franchise Agreement related to the loan is to be determined by the franchisee.

This indicates that if a franchisee obtains a loan to finance their Creative World School franchise, the terms of that loan, as documented in the loan note, are legally connected to and governed by the terms and conditions outlined in the Franchise Agreement. This means that any default or breach of the Franchise Agreement could potentially trigger consequences related to the loan, and vice versa.

Prospective Creative World School franchisees should carefully review both the Franchise Agreement and any loan documents with legal and financial advisors to fully understand the implications of this relationship. They should pay close attention to clauses regarding termination, default, and any cross-default provisions that link the loan to the franchise agreement. Understanding these connections is crucial for managing the financial risks associated with the franchise.