When is the transfer fee due for a Creative World School franchise?
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 sell their Creative World School franchise to a new owner, they will need to pay this transfer fee to Creative World School. The fee compensates Creative World School for the work involved in approving the transfer and onboarding the new franchisee. The fee covers Creative World School's administrative costs and ensures that the new franchisee meets their standards.
It is important for prospective franchisees to understand all the costs associated with transferring a franchise, including this transfer fee. Franchisees should factor this potential cost into their long-term financial planning. The transfer fee is non-refundable, as noted elsewhere in the FDD.