When is the renewal fee due for a Creative World School franchise?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer | Greater of $20,000 or 25% of then- current initial franchise fee | Upon signing transfer franchise agreement | N/A |
| Transferee | Training, cost to be included in | As incurred | You pay all travel and living |
| Training | Transfer fee | expenses. | |
| Renewal | Greater of $20,000 or 25% of then- current initial franchise fee | Upon signing successor franchise agreement | N/A |
Source: Item 6 — OTHER FEES (FDD pages 15–18)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, the renewal fee is due upon signing the successor franchise agreement. The renewal fee is the greater of $20,000 or 25% of the then-current initial franchise fee.
This means that if a franchisee wants to renew their franchise agreement with Creative World School, they will need to pay a renewal fee at the time of signing the new agreement. The exact amount will depend on which is higher: a flat $20,000 or a quarter of whatever the current initial franchise fee is at that time.
For a prospective franchisee, it's important to factor this renewal fee into long-term financial planning. Franchisees should also be aware that the initial franchise fee may increase over time, potentially making the renewal fee higher than anticipated if it is calculated as 25% of the then-current fee. It would be prudent to inquire with Creative World School about the typical range of initial franchise fees and potential increases to better estimate future renewal costs.