What is the significance of the 'Agreement to Lease' in relation to the Creative World School lease agreement?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
If, at any time during the Term, you or your affiliates own the Site, you must sign and deliver to us our standard form of Agreement to Lease, which requires you, at our option, to lease the Site to us or our designee pursuant to our standard form of Lease Agreement if this Agreement is terminated by us for cause, or by you without cause, prior to its expiration.
Our standard form of Agreement to Lease is attached to the Franchise Disclosure Document.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, if a franchisee or their affiliates own the site of their school, they must sign and deliver the standard 'Agreement to Lease' to Creative World School. This agreement gives Creative World School the option to lease the site if the Franchise Agreement is terminated either by Creative World School for cause or by the franchisee without cause before the agreement's expiration. The standard form of the Agreement to Lease is included in the Franchise Disclosure Document.
This stipulation ensures that Creative World School can maintain control over the location of a school even if the franchise agreement is terminated. This is particularly important for maintaining brand consistency and minimizing disruption to the school's operations. By having the option to lease the site, Creative World School can continue operating a school at that location, either directly or through another franchisee.
For a prospective franchisee, this means that if they own the property where their Creative World School is located, they must be willing to lease it to Creative World School under certain termination scenarios. This could impact the franchisee's long-term property plans and should be carefully considered. The franchisee should review the standard form of the Agreement to Lease, which is attached to the Franchise Disclosure Document, to fully understand the terms and conditions of the lease agreement.