Are there any exceptions to the receipt requirements for the Creative World School franchisor?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
If Creative World Franchising Company, Inc. offers you a franchise, it must provide this disclosure document to you 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale. New York requires that we give you this disclosure document at the earlier of the first personal meeting or 10 business days before the execution of any binding franchise or other agreement, or payment of any consideration that relates to the franchise relationship. Michigan requires that we give you this disclosure document at least 10 business days before the execution of any binding franchise or other agreement, or payment of any consideration, whichever occurs first.
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.
The general release required as a condition of renewal, sale, and/or assignment or transfer will not apply to any liability under the Maryland Franchise and Disclosure Law (the "Maryland Law").
However, to the extent required by applicable law, all rights you enjoy and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this proviso that the non-waiver provisions of General Business Law Sections 687.4 and 687.5 be satisfied.
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 exceptions to the standard receipt and disclosure requirements, particularly for franchisees in New York, Michigan, Minnesota, and Maryland.
The standard requirement is that Creative World School must provide the FDD to a prospective franchisee 14 calendar days before they sign a binding agreement or make a payment. However, New York has a stricter rule, mandating that the FDD be provided at the earlier of the first personal meeting or 10 business days before any binding agreement or payment. Michigan also requires a 10 business days disclosure period before the execution of any binding agreement or payment.
Furthermore, addenda for Minnesota, New York, and Maryland state that no statement signed by a franchisee can waive claims under state franchise law, including fraud. For Maryland franchisees, the general release required for renewal, sale, or transfer does not apply to liabilities under Maryland Franchise and Disclosure Law, and franchisees can bring lawsuits in Maryland for claims arising under this law. In New York, all rights and causes of action arising from Article 33 of the General Business Law of the State of New York remain in force, satisfying the non-waiver provisions of General Business Law Sections 687.4 and 687.5.