On what terms and conditions will Creative World School deliver Operating Assets to the franchisee?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
If you want to propose a new supplier of Operating Assets (other than us or our affiliates), you agree to submit to us sufficient written information about the proposed new supplier to enable us to approve or reject either the supplier or the particular items.
We will have at least 90 days from receipt of the information to approve or reject the proposed new supplier or items.
We may change, alter or amend such approval or review periods from time to time.
We may consider in providing such approval not just the quality standards of the products or services, but their delivery capabilities, financing terms and ability to service our franchise system as a whole. We may terminate or withhold approval of any Operating Assets, or any supplier of such items, that does not meet our quality standards by giving you written notice. If we do so, you agree to immediately stop purchasing from such supplier or using such Operating Assets in your School until we notify you that such supplier or such Operating Assets meet our quality standards. At our request, you agree to submit to us sufficient information about a proposed supplier and samples of the proposed Operating Assets for our examination so that we can determine whether they meet our quality standards. We also must have the right to require our representatives to be permitted to inspect the proposed supplier's facilities at your expense. Notwithstanding the foregoing, we may limit the number of approved suppliers with whom you may deal, designate sources that you must use, and/or refuse any of your requests for any reason, including that we have already designated an exclusive source (which might be us or our affiliate) for a particular item or service or if we believe that doing so is in the best interests of the CREATIVE WORLD SCHOOL® system.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, if a franchisee wants to propose a new supplier of Operating Assets other than Creative World School or its affiliates, the franchisee must submit sufficient written information about the proposed new supplier to allow Creative World School to approve or reject either the supplier or the specific items. Creative World School has at least 90 days from receipt of the information to approve or reject the proposed new supplier or items, and Creative World School may change, alter, or amend such approval or review periods from time to time.
Creative World School will consider the quality standards of the products or services, their delivery capabilities, financing terms, and ability to service the franchise system as a whole when providing such approval. Creative World School may terminate or withhold approval of any Operating Assets, or any supplier of such items, that does not meet their quality standards by giving the franchisee written notice. If this occurs, the franchisee must immediately stop purchasing from such supplier or using such Operating Assets in their School until Creative World School notifies them that such supplier or such Operating Assets meet their quality standards.
At Creative World School's request, the franchisee must submit sufficient information about a proposed supplier and samples of the proposed Operating Assets for examination to determine whether they meet quality standards. Creative World School also has the right to require their representatives to inspect the proposed supplier's facilities at the franchisee's expense. Creative World School may limit the number of approved suppliers with whom the franchisee may deal, designate sources that the franchisee must use, and/or refuse any of the franchisee's requests for any reason, including that they have already designated an exclusive source (which might be Creative World School or its affiliate) for a particular item or service or if they believe that doing so is in the best interests of the Creative World School system.