When is the Creative World School transfer fee due?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer | Greater of $20,000 or 25% of then- current initial franchise fee | Upon signing transfer franchise agreement | N/A |
Source: Item 6 — OTHER FEES (FDD pages 15–18)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, the transfer fee is due upon signing the transfer franchise agreement. The transfer fee is the greater of $20,000 or 25% of the then-current initial franchise fee.
This means that if a franchisee decides to transfer their Creative World School franchise to a new owner, they or the new owner will need to pay this fee at the time the transfer agreement is signed. The fee covers Creative World School's administrative costs and approvals associated with the transfer process. The exact amount will depend on what the initial franchise fee is at the time of the transfer, ensuring it's either a flat $20,000 or a quarter of the current initial fee, whichever is higher.
It is important for prospective franchisees to understand this fee, as it can be a significant cost associated with exiting the franchise system through a transfer. Franchisees should factor this potential expense into their long-term financial planning and consider it when evaluating the potential profitability of their Creative World School franchise.