What are the requirements for the proposed transferee of a Creative World School franchise?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
divorce, insolvency or corporate or partnership dissolution proceeding or otherwise by operation of law;
(v) transfer of an interest in you, this Agreement or the School, in the event of your death or the death of one of your owners, by will, declaration of or transfer in trust or under the laws of intestate succession; or
(vi) pledge of this Agreement (to someone other than us) or of an ownership interest in you as security, foreclosure upon the School or your transfer, surrender or loss of possession, control or management of the School.
15.03 Conditions for Approval of Transfer. If you (and your owners) are in full compliance with this Agreement then we will approve a transfer that meets all the applicable requirements of this Section. The proposed transferee and its direct and indirect owners must be individuals of good character and otherwise meet our then applicable standards for School franchisees. A transfer of ownership, possession or control of the School may be made only in conjunction with a transfer of this Agreement. If the transfer is of this Agreement or a controlling interest in you, or is one of a series of transfers which in the aggregate constitute the transfer of this Agreement or a controlling interest in you, all of the following conditions must be met prior to or concurrently with the effective date of the transfer:
- (a) the transferee has sufficient business experience, aptitude and financial resources to Construct (if necessary) and opera
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, several conditions must be met for a transfer of ownership to be approved. If the current franchisee is in full compliance with the Franchise Agreement, Creative World School will approve a transfer if it meets the requirements outlined in Section 15.03. The proposed transferee and their owners must be of good character and meet the standards for Creative World School franchisees. The transfer of ownership, possession, or control of the school must occur alongside the transfer of the Franchise Agreement.
If the transfer involves the Franchise Agreement, a controlling interest, or a series of transfers that collectively result in a transfer of the agreement or controlling interest, additional conditions apply. The transferee must demonstrate sufficient business experience, aptitude, and financial resources to construct (if necessary) and operate the school. All outstanding royalties, marketing fund contributions, amounts owed for purchases, and other debts to Creative World School or third-party creditors must be paid. Additionally, all required reports and statements must be submitted.
The transferee (or its Manager) and its managerial employee (if different from the current manager) must agree to complete Creative World School's standard training program. The transferee must also agree to be bound by all the terms and conditions of the Franchise Agreement. Finally, either the current franchisee or the transferee must pay Creative World School a transfer fee. This fee is the greater of $20,000 or 25% of Creative World School's then-current initial franchise fee.
These requirements ensure that any new owner is well-qualified and committed to maintaining the standards and obligations of the Creative World School franchise system. Prospective franchisees should carefully consider these conditions when planning for a potential transfer of their franchise.