Does Creative World School require approval of any renewal of the lease of 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.
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 or lease renewal for the site of their school. The franchisee is required to provide a copy of the signed lease to Creative World School within 15 days of signing, along with a Lease Assignment. Creative World School also requires that the franchisee obtain a Lease Assignment signed by the lessor before signing any lease or renewal.
Creative World School may mandate specific provisions in the lease or any renewal. These provisions include allowing the lessor to provide Creative World School with revenue and operational information about the school, requiring the lessor to provide copies of default notices to Creative World School, granting Creative World School the right to cure any default, ensuring the franchisee's right to display trademarks, protecting the franchisee's possession of the site, stating 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 the terms under which they operate. By requiring approval of the lease and any renewals, Creative World School can protect its brand and ensure that the site meets its standards. The mandatory lease terms further safeguard Creative World School's interests by providing access to important information and the ability to address lease defaults. This also ensures the lease terms align with the franchise agreement's term.