Does the Creative World School System Standards regulate periodic remodeling of the school?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.02 Compliance with System Standards. You acknowledge and agree that your operation and maintenance of the School in accordance with System Standards are essential to preserve the goodwill of the Marks and all Schools. Therefore, at all times during the Term, you agree to operate and maintain the School in accordance with each and every System Standard, as we periodically modify and supplement them during the Term. System Standards may regulate any one or more of the following with respect to the School:
- (a) Construction, design, layout, decor, appearance, playground surface and playground equipment and lighting; periodic maintenance, cleaning and sanitation; periodic remodeling; replacement of obsolete or worn-out leasehold improvements, fixtures, furnishings, equipment and signs; periodic painting; and use of interior and exterior signs, emblems, lettering and logos, and illumination;
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, the System Standards do regulate periodic remodeling of the school. Creative World School requires franchisees to operate and maintain their schools in accordance with the System Standards, which are periodically modified and supplemented. These standards are crucial for preserving the goodwill of the Creative World School brand and all its schools.
The System Standards cover various aspects of the school's operation, including construction, design, layout, decor, appearance, playground surface and equipment, lighting, and periodic maintenance. Specifically, the standards address periodic remodeling, replacement of obsolete or worn-out leasehold improvements, fixtures, furnishings, equipment, and signs, as well as periodic painting, and the use of interior and exterior signs, emblems, lettering, logos, and illumination.
Creative World School may modify these System Standards, potentially requiring franchisees to invest additional capital in the school or incur higher operating costs. These modifications, termed "Capital Modifications," are subject to certain limitations. Creative World School will not mandate Capital Modifications that cannot be reasonably amortized during the remaining term of the franchise, including eligible successor periods, unless the franchise term is extended or the investment is necessary to comply with applicable laws. Franchisees are given 90 days to comply with Capital Modifications, or 180 days if the expenditure exceeds $10,000. However, during the initial construction phase, these time limits and capital expenditure limits do not apply, allowing Creative World School to modify construction standards as needed. The total Capital Modifications required during the term will not exceed 25% of the high estimate of the initial leasehold improvements and furniture, fixtures, and equipment costs as stated in the Franchise Disclosure Document.