What is the 'Royalty Commencement Date' for a Creative World School franchise, and how is it determined?

According to Creative World School's 2025 Franchise Disclosure Document, the Royalty Commencement Date is the date when a franchisee must begin paying royalties to the franchisor. For Creative World School, this date is determined by whichever comes first: either the date the school has 75 children enrolled, or the first day of the seventh month following the school's opening.

This means a new Creative World School franchisee will not immediately be required to pay royalties. This provides a ramp-up period to establish the business and build enrollment. However, the franchisee should be aware that royalty payments will begin even if the enrollment target of 75 children is not met within the first six months of operation.

Franchisees should carefully consider their local market and projected enrollment rates to estimate when they will likely hit the 75-child threshold. If the franchisee anticipates a slow initial enrollment, they should budget accordingly to ensure they can meet their royalty obligations starting in the seventh month, regardless of enrollment numbers. This dual condition provides some flexibility but also sets a firm deadline for royalty commencement.