factual

Are the rights and remedies in the Creative World School agreement cumulative?

Creative_World_School Franchise · 2025 FDD

Answer from 2025 FDD Document

must be made by written notice to the other party within 3 years from the occurrence of the facts giving rise to such claim (regardless of when it becomes known).

    1. Governing Law. The following sentence is added at the end of Section 20.07:

MINN. STAT. §80C.21 AND MINN. RULE 2860.4400J PROHIBIT US FROM REQUIRING LITIGATION TO BE CONDUCTED OUTSIDE MINNESOTA. IN ADDITION, NOTHING IN THE DISCLOSURE DOCUMENT OR AGREEMENT CAN ABROGATE OR REDUCE ANY OF YOUR RIGHTS AS PROVIDED FOR IN MINNESOTA STATUTES, CHAPTER 80C, OR YOUR RIGHTS TO ANY PROCEDURE, FORUM, OR REMEDIES PROVIDED FOR BY THE LAWS OF THE JURISDICTION.

    1. Injunctive Relief. Nothing in the Franchise Agreement is construed to mean that you are consenting to our obtaining injunctive relief. We may, however, seek injunctive relief. The court will determine if a bond is required.
      1. Waiver of Jury Trial. Section 20.09 is deleted in its entirety.

Intending to be bound, you and we sign and deliver this Rider in 2 counterparts effective on the Agreement Date, regardless of the actual date of signature.

CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC. YOU Ву: Bv:

ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC. STATE OF NEW YORK

1. The following is added to the disclosure document:

No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

2. The following information is added to the cover page of the Franchise Disclosure Document:

INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE ADMINISTRATORS LISTED IN EXHIBIT A OR YOUR PUBLIC LIBRARY FOR SOURCES OF INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW YORK STATE DOES NOT MEAN THAT NEW YORK STATE RECOMMENDS IT OR HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT. IF YOU LEARN THAT ANYTHING IN THE FRANCHISE DISCLOSURE DOCUMENT IS UNTRUE, CONTACT THE FEDERAL TRADE COMMISSION AND NEW YORK STATE DEPARTMENT OF LAW, BUREAU OF INVESTOR PROTECTION AND SECURITIES, 120 BROADWAY, 23RD FLOOR, NEW YORK, NEW YORK 10271. THE FRANCHISOR MAY, IF IT CHOOSES, NEGOTIATE WITH YOU ABOUT ITEMS COVERED IN THE FRANCHISE DISCLOSURE DOCUMENT. HOWEVER, THE FRANCHISOR CANNOT USE THE NEGOTIATING PROCESS TO PREVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS WHICH ARE LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.

3. The following is added at the end of Item 3:

Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:

  • A. No such party has an administrative, criminal or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
  • B.

Source: Item 23 — RECEIPTS (FDD pages 80–247)

What This Means (2025 FDD)

Based on the 2025 Creative World School Franchise Disclosure Document, it is not explicitly stated whether the rights and remedies in the agreement are cumulative. However, the FDD includes addenda and riders for specific states like New York, Virginia, Minnesota, Maryland, and Illinois, which address franchisees' rights, claims, and legal procedures. These state-specific addenda often include provisions that supersede conflicting terms in the standard franchise agreement to comply with local franchise laws.

For example, the addenda often state that no statement or acknowledgement signed by the franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on the franchisor. For Minnesota franchisees, the franchisor will protect the franchisee's right to use trademarks and indemnify them from losses arising from claims regarding the use of the name. Furthermore, Minnesota law requires the franchisor to provide specific notices for termination and non-renewal, and protects the franchisee's rights to procedures, forums, and remedies provided by the laws of the jurisdiction.

In Maryland, the general release required for renewal, sale, or transfer will not apply to liabilities under the Maryland Franchise and Disclosure Law, and franchisees can bring lawsuits in Maryland for claims arising under this law. These stipulations suggest that Creative World School aims to ensure franchisees retain all rights and remedies available under state laws, even if the standard agreement might imply otherwise. However, without an explicit statement about cumulative rights and remedies, prospective franchisees should seek clarification from Creative World School regarding this aspect to fully understand their entitlements and protections.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.