Are there any exceptions to the receipt requirements for the Creative World School franchisee?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
f the Agreement is deleted in its entirety. 3. General Release. The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. 4. Limitation of Claims. Provided, however, that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise to you. 5. Jurisdiction. Provided, however, that you may bring a lawsuit against us in Maryland for any claims arising under the Maryland Franchise Registration and Disclosure Law. 6. No Waiver. All representations requiring prospective franchisees to assent to a release, estoppel or wavier of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. Intending to be bound, you and we sign and deliver this Rider in 2 counterparts effective on the Agreement Date, regardless of the actual date of signature. CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC. YOU Date: Date:
ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC. STATE OF MINNESOTA
- The following is added to the disclosure document:
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
- Additional Disclosures:
MINNESOTA LAW PROVIDES YOU WITH CERTAIN TERMINATION AND NON-RENEWAL RIGHTS. MINN. STAT. §80C.14 SUBD. 3, 4 AND 5 REQUIRE, EXCEPT IN CERTAIN CASE, THAT YOU BE GIVEN 90 DAYS' NOTICE OF TERMINATION (WITH 60 DAYS TO CURE) AND 180 DAYS' NOTICE FOR NONRENEWAL OF THE FRANCHISE AGREEMENT.
MINN. STAT. §80C.21 AND MINN. RULE 2860.4400J PROHIBIT US FROM REQUIRING LITIGATION TO BE CONDUCTED OUTSIDE MINNESOTA. IN ADDITION, NOTHING IN THE DISCLOSURE DOCUMENT OR AGREEMENT CAN ABROGATE OR REDUCE ANY OF YOUR RIGHTS AS PROVIDED FOR IN MINNESOTA STATUTES, CHAPTER 80C, OR YOUR RIGHTS TO ANY PROCEDURE, FORUM, OR REMEDIES PROVIDED FOR BY THE LAWS OF THE JURISDICTION.
- Minnesota considers it unfair to not protect the franchisee's right to use the trademarks. Therefore, Item 13 is amended by adding the following:
The franchisor will protect the franchisee's right to use the trademarks, service marks, trade names, logotypes or other commercial symbols or indemnify the franchisee from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the name.
- Item 17 is amended by adding the following:
You and your Owners must execute general releases, in form and substance satisfactory to us, of any and all claims against us, and our Affiliates, officers, directors, employees, agents, successors and assigns, except for matters coming under the Minnesota Franchise law.
- Item 17, summary column for (f) is amended to add the following:
With respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, subds. 3, 4 and 5 which require, except in certain specified cases, that you be given 90 days notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal of the Franchise Agreement and that consent to transfer of the franchise will not be unreasonably withheld..
- Item 17, summary column for (m) is amended to add the following:
Any release signed as a condition of transfer will not apply to any claims you may have under the Minnesota Franchise Act.
- Item 17, summary columns for (v) and (w) are amended to add the following:
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota. In addition, nothing in this disclosure document or agreement can abrogate or reduce any of your rights as provided for in Minnesota Statues, Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
RIDER TO CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC. FRANCHISE AGREEMENT FOR USE IN MINNESOTA
| CREATIVE WORLD SCHOOLS FRANCHISING | COMPANY, I | ĪNC., à F | lorida corpo | oration (" ı | ve," "us, |
|---|---|---|---|---|---|
| "our" or "Franchisor"), with its principal business a | address at 25 | 110 Bern | wood Drive, | Suite #10 | 04, Bonita |
| Springs, Florida 34135, and | , a | ||||
| whose principal business address is | eferred to ir | ||||
| "Franchisee") and amends the Franchise Agreer | ment betweer | n the pai | rties dated a | as of the | Effective |
| Date, (the "Agreement"). | • |
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- Precedence and Defined Terms. This Rider is an integral part of, and is incorporated into, the Agreement. Nevertheless, this Rider supersedes any inconsistent or conflicting provisions of the Agreement. Terms not otherwise defined in this Rider have the meanings as defined in the Agreement.
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- Questionnaires and Acknowledgements. No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Successor Terms. The next to the last sentence in Section 3.03 is amended to read as follows:
You and your Owners must execute general releases, in form and substance satisfactory to us, of any and all claims against us, and our Affiliates, officers, directors, employees, agents, successors and assigns, except for matters coming under the Minnesota Franchise law.
- Marks. The following is added to Article VIII.
The franchisor will protect the franchisee's right to use the trademarks, service marks, trade names, logotypes or other commercial symbols or indemnify the franchisee from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the name.
5.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, there are specific stipulations and addenda that modify the standard receipt and legal acknowledgement procedures for franchisees, particularly concerning state franchise laws. These modifications are primarily designed to protect the franchisee's rights and ensure compliance with local regulations. These exceptions vary by state, as detailed in addenda for Minnesota, New York, and Maryland.
For franchisees in Minnesota, the addendum states that no agreement signed by the franchisee can waive claims under Minnesota franchise law, including fraud. The franchisor must also protect the franchisee's right to use trademarks and indemnify them against related claims. Additionally, any general releases required must exclude matters covered under Minnesota Franchise law. The Minnesota addendum also specifies notice requirements for termination and non-renewal, as well as stipulations regarding litigation venues and the franchisee's rights under Minnesota statutes.
In New York, similar protections are in place, ensuring that franchisees do not waive rights conferred by Article 33 of the General Business Law of the State of New York. The agreement also specifies that franchisees may terminate the agreement on any grounds available by law in New York. The franchisor must ensure that any assignment of the contract is to an assignee who is willing and financially able to assume the franchisor's obligations. The choice of law should not be considered a waiver of any right conferred upon the franchisor or upon the franchisee by Article 33 of the General Business Law of the State of New York.
For Maryland franchisees, the addendum ensures that required general releases do not apply to liabilities under the Maryland Franchise and Disclosure Law. It also clarifies that franchisees can bring lawsuits in Maryland for claims arising under this law, and any such claims must be brought within three years of the franchise grant. These state-specific addenda collectively modify the standard franchise agreement to align with local laws, providing additional protections and rights to franchisees in these states.