Does Creative World School require approval of any lease renewals for the Site?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Lease Approval: You agree to obtain our approval of the lease of the Site before you sign it, or any renewal of it.
You agree to deliver a copy of the signed lease to us within 15 days after its execution along with the Lease Assignment.
You agree not to sign any lease or renewal of a lease unless you have also obtained the Lease Assignment signed by the lessor.
(d) Mandatory Lease Terms: We may require that the lease or any renewal contain certain provisions, including the following:
(i) a provision which expressly permits the lessor of the Site to provide us with all revenue and other information it may have related to the operation of your School as we may request;
(ii) a provision which requires the lessor to contemporaneously provide us with copies of any written notice of default under the lease sent to you and which grants to us, at our option, the right (but not the obligation) to cure any default under the lease (should you fail to do so) within 15 days after the expiration of the period in which you may cure the default;
(iii) a provision which evidences your right to display the Marks in accordance with the specifications required by the Manuals, subject only to the provisions of applicable law;
(iv) a provision which requires that any lender or other person will not disturb your possession of the Site so long as the lease term continues and you are not in default (along with such documents as are necessary to ensure that such lenders and other persons are bound);
(v) a provision which expressly states that any default under the lease which is not cured within any applicable cure period also constitutes grounds for termination of this Agreement;
(vi) a lease term which is at least equal to the Term, either through an initial term of that length or rights, at your option, to renew the lease for the full Term; and
(vii)the premises must be operated as a School.
(e) No Warranty: You acknowledge that our approval of the lease for the Site does not constitute a guarantee or warranty, express or implied, of the successful operation or profitability of a School operated at the Site.
Such approval indicates only that we believe that the Site and the terms of the lease fall within the acceptable criteria we have established as of the time of our approval.
You further acknowledge that we have advised you to have an attorney review and evaluate 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, franchisees must obtain Creative World School's approval before signing any lease renewals for their site. The franchisee is required to deliver a copy of the signed lease to Creative World School within 15 days of execution, along with a Lease Assignment. Furthermore, franchisees are prohibited from signing any lease or renewal without obtaining the Lease Assignment signed by the lessor.
Creative World School may also mandate specific provisions in the lease or any renewal. These provisions can include allowing the lessor to provide Creative World School with revenue and other operational information about the school, requiring the lessor to provide copies of default notices to Creative World School, and granting Creative World School the right to cure any default under the lease. Additional provisions may cover the franchisee's right to display trademarks, ensuring the franchisee's possession of the site isn't disturbed, stipulating that lease defaults can lead to franchise termination, setting a lease term equal to the franchise term, and ensuring the premises are operated as a school.
This requirement ensures that Creative World School maintains a degree of control over the location of its franchises and can protect its interests in the event of lease-related issues. It also allows Creative World School to gather operational and financial information from the lessor, potentially aiding in the oversight and support of the franchise. However, the FDD also states that Creative World School's approval of a lease does not guarantee the success or profitability of the school at the site. Franchisees are advised to have an attorney review and evaluate the lease before signing.