What are some of the remedies Creative World School can exercise in case of franchisee default?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Exercise of Remedies: In any case of default by the Franchisee under the terms of the Lease or under the Franchise Agreement, the Franchisor shall be entitled to exercise any one or more of the following remedies in its sole discretion:
(a) to take possession of the Site, or any part thereof, personally, or by its agents or attorneys;
(b) to, in its discretion, without notice and with or without process of law, enter upon and take and maintain possession of all or any part of the Site, together with all furniture, fixtures, inventory, books, records, papers and accounts of the Franchisee;
(c) to exclude the Franchisee, its agents or employees from the Site;
(d) as attorney-in-fact for the Franchisee, or in its own name, and under the powers herein granted, to hold, operate, manage and control the School and conduct the business, if any, thereof, either personally or by its agents, with full power to use such measures, legally rectifiable, as in its discretion may be deemed proper or necessary to cure such default, including actions of forcible entry or detainer and actions in distress of rent, hereby granting full power and authority to the Franchisor to exercise each and every of the rights, privileges and powers herein granted at any and all times hereafter;
(e) to cancel or terminate any unauthorized agreements or subleases entered into by the Franchisee, for any cause or ground which would entitle the Franchisor to cancel the same:
(f) to disaffirm any unauthorized agreement, sublease or subordinated lien, to make all necessary or proper repairs, decorating, renewals, replacements, alterations, additions, betterments and improvements to the Site or the Site that may seem judicious, in the sole discretion of the Franchisor; and
(g) to insure and reinsure the same for all risks incidental to the Franchisor's possession, operation and management thereof; and/or
(h) notwithstanding any provision of the Franchise Agreement to the contrary, to declare all of the Franchisee's rights but not obligations under the Franchise Agreement to be immediately terminated as of the date of the Franchisee's default under the Lease.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, in the event of a franchisee's default under the terms of the lease or the Franchise Agreement, Creative World School has several remedies available. These remedies can be exercised at the sole discretion of Creative World School.
Creative World School can take possession of the site, or any part of it, either personally or through agents or attorneys. They can also enter and maintain possession of the site, including all furniture, fixtures, inventory, books, records, papers, and accounts of the franchisee, with or without notice and with or without process of law. Creative World School can exclude the franchisee, its agents, or employees from the site.
Furthermore, Creative World School, acting as the franchisee's attorney-in-fact or in its own name, can operate, manage, and control the school and conduct the business. This includes the power to use measures deemed necessary to cure the default, such as actions of forcible entry or detainer and actions in distress of rent. Creative World School can also cancel or terminate any unauthorized agreements or subleases entered into by the franchisee, disaffirm any unauthorized agreement, sublease, or subordinated lien, and make necessary repairs, decorations, renewals, replacements, alterations, additions, betterments, and improvements to the site. Additionally, Creative World School can insure and reinsure the site for risks related to its possession, operation, and management. Finally, Creative World School can declare all of the franchisee's rights under the Franchise Agreement to be immediately terminated as of the date of the franchisee's default under the lease, notwithstanding any provision to the contrary in the Franchise Agreement.