What release must the transferring owner execute for a Creative World School franchise transfer?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
If the transfer is of this Agreement or a controlling interest in you, or is one of a series of transfers which in the aggregate constitute the transfer of this Agreement or a controlling interest in you, all of the following conditions must be met prior to or concurrently with the effective date of the transfer:
- (f) you (and your transferring owners) have executed a general release, in form satisfactory to us, of any and all claims against us and our shareholders, officers, directors, employees and agents;
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, a transferring owner must execute a general release in a form that is satisfactory to Creative World School. This release must cover any and all claims against Creative World School, including its shareholders, officers, directors, employees, and agents.
This requirement means that a franchisee selling their Creative World School location must waive their rights to sue Creative World School for any reason. This is a standard practice in franchising to protect the franchisor from future liabilities related to the transferred franchise. The franchisor has the right to determine if the release form is satisfactory.
Prospective franchisees should carefully consider this requirement and consult with an attorney to understand the full implications of signing such a release. It is important to ensure that there are no outstanding issues or potential claims against Creative World School before proceeding with the transfer. Franchisees in Maryland should note the addendum that the general release will not apply to any liability under the Maryland Franchise and Disclosure Law.