What are the requirements for a Creative World School franchisee to renew or extend the franchise term?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
-----------------------------------------------------------| | | | Franchise or | | | | | Other | | | | Provision | Agreement | Summary | | a. | Length of the franchise | Section | 20 years | | | term | 2.3 | | | b. | Renewal or extension of the term | Section 3 | If you are in good standing, you can acquire 3 successor franchises for additional 10- year terms on our then current terms and conditions | | c. | Requirements for franchisee to renew or extend | Section 3 | Your renewal rights permit you to remain as a franchisee after the initial term of your franchise agreement expires. However, to remain a franchisee, you must meet all required conditions to renewal, including signing our then-current form of franchise agreement, which may be materially different than the form attached to this disclosure document.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 53–57)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, a franchisee in good standing has the option to acquire up to three successor franchises, each for an additional 10-year term, based on the then-current terms and conditions set by Creative World School. The initial franchise term is 20 years, as detailed in Section 2.3 of the Franchise Agreement.
To remain a franchisee and exercise these renewal rights, several conditions must be met. The franchisee must meet all required conditions, including signing the then-current form of the franchise agreement, which may differ significantly from the original agreement. Other conditions include maintaining the site or securing a substitute site, bringing the school into compliance with Creative World School's current specifications and standards, signing new franchise and ancillary agreements, providing general releases, satisfactorily completing required training and refresher programs, and paying a renewal fee.
Prospective franchisees should note that the terms and conditions upon renewal may be materially different from those in the original franchise agreement. This could impact the franchisee's obligations, fees, and operational requirements. It is crucial for franchisees to carefully review the then-current franchise agreement and related documents before committing to a renewal to understand any changes and their potential impact on their business. Franchisees should also inquire about the estimated cost of bringing their school into compliance with the then-current specifications and standards, as this could represent a significant investment.