What does the Creative World School transfer fee cover?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
sferee has sufficient business experience, aptitude and financial resources to Construct (if necessary) and operate the School;
- (b) you have paid all Royalties, Marketing Fund contributions, amounts owed for purchases from us and all other
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, the transfer fee covers the cost of training the transferee (or their manager) and their managerial personnel. If a franchisee decides to transfer their Creative World School franchise to a new owner, a transfer fee is required, set at the greater of $20,000 or 25% of the then-current initial franchise fee.
This fee is payable to Creative World School before or during the transfer's effective date. The prospective franchisee should note that this transfer fee is only one of several conditions that must be met for the transfer to be approved. Other conditions include ensuring the transferee meets Creative World School's standards for franchisees, settling all outstanding payments to Creative World School, and securing the transferee's agreement to adhere to the franchise agreement's terms.
It is important to note that if the transfer occurs between existing owners, a transfer fee will not apply. However, the transferee is still responsible for reimbursing Creative World School for any administrative costs incurred during the transfer process. This distinction highlights that the transfer fee primarily covers the expenses associated with bringing a new franchisee up to speed, rather than internal ownership changes.