Is there a requirement for confidentiality agreements in Creative World School arbitration proceedings?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
- (j) Except as otherwise required by law, neither party nor the arbitrator may disclose (to anyone not party to the arbitration) the existence, content, or results of any arbitration hereunder, including the record of the arbitration hearing, without the prior written consent of all the parties to the arbitration.
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 confidentiality requirements pertaining to arbitration proceedings. Unless otherwise required by law, neither party involved in the arbitration, nor the arbitrator, is allowed to disclose the existence, content, or results of any arbitration. This includes the record of the arbitration hearing, to anyone not directly involved in the arbitration, without obtaining prior written consent from all parties participating in the arbitration.
This provision ensures that the details of any disputes between Creative World School and its franchisees remain private, protecting both the franchisor's and franchisee's interests. This confidentiality extends to the content, results, and records of the arbitration, preventing unauthorized disclosure to third parties. The requirement for written consent from all parties before any disclosure provides an additional layer of protection, ensuring that no information is released without the agreement of everyone involved.
For a prospective Creative World School franchisee, this means that any disputes that go to arbitration will be handled with a high degree of confidentiality. This can be beneficial in protecting sensitive business information and maintaining the franchisee's reputation. However, it also means that the franchisee will not be able to discuss the details of the arbitration publicly without the franchisor's consent, which could limit their ability to share experiences or seek advice from others. Franchisees should carefully consider these implications and ensure they understand the scope of the confidentiality requirements before entering into a franchise agreement with Creative World School.