What terms and conditions of the transfer must Creative World School approve?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
(g) we have approved the material terms and conditions of such transfer and determined that the price and terms of payment will not adversely affect the transferee's operation of the School;
(h) if you or your owners finance any part of the sale price of the transferred interest, you and/or your owners have agreed that all of the transferee's obligations pursuant to any promissory notes, agreements or security interests that you or your owners have reserved in the School are subordinate to the transferee's obligation to pay Royalties, Marketing Fund contributions and other amounts due to us and otherwise to comply with this Agreement;
(i) you and your transferring owners have executed a non-competition covenant in favor of us and the transferee agreeing to be bound, commencing on the effective date of the transfer; and
(j) you and your transferring owners have agreed that you and they will not directly or indirectly at any time or in any manner (except with respect to other Schools you own and operate) identify yourself or themselves or any business as a current or former School, or as one of our licensees or franchisees, use any Mark, any colorable imitation of a Mark, or other indicia of a School in any manner or for any purpose or utilize for any purpose any trade name, trade or service mark or other commercial symbol that suggests or indicates a connection or association with us.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, the franchisor's approval of a transfer is contingent upon several terms and conditions. Creative World School must approve the material terms and conditions of the transfer, ensuring that the price and payment terms do not negatively impact the transferee's ability to operate the school effectively.
Additionally, if the franchisee or their owners are financing any part of the sale, they must agree that the transferee's obligations to them are subordinate to the transferee's obligations to Creative World School. This includes the payment of royalties, marketing fund contributions, and other amounts owed under the Franchise Agreement. Furthermore, both the franchisee and their transferring owners must execute a non-competition covenant in favor of Creative World School and the transferee, effective from the transfer date.
Finally, the franchisee and transferring owners must agree not to identify themselves or any business as a current or former Creative World School, licensee, or franchisee. They are prohibited from using any marks, imitations of marks, or other indicators associated with Creative World School. These conditions ensure that the transfer does not harm the Creative World School brand or its revenue streams, and that the new owner is set up for success while protecting the franchisor's interests.