Does the Creative World School transfer fee include the cost of training the transferee?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ool or your transfer, surrender or loss of possession, control or management of the School.
- 15.03 Conditions for Approval of Transfer. If you (and your owners) are in full compliance with this Agreement then we will approve a transfer that meets all the applicable requirements of this Section. The proposed transferee and its direct and indirect owners must be individuals of good character and otherwise meet our then applicable standards for School franchisees. A transfer of ownership, possession or control of the School may be made only in conjunction with a transfer of this Agreement. If the transfer is of this Agreement or a controlling interest in you, or is one of a series of transfers which in the aggregate constitute the transfer of this Agreement or a controlling interest in you, all of the following conditions must be met prior to or concurrently with the effective date of the transfer:
- (a) the transferee 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 cost of training the transferee or their manager and managerial personnel is included in the transfer fee. To transfer a Creative World School franchise, several conditions must be met.
Specifically, the franchisee must be in full compliance with the existing franchise agreement. The proposed transferee must meet Creative World School's standards for franchisees. The transferee (or their manager) must agree to complete Creative World School's standard training program. The franchisee or the transferee must pay a transfer fee. This fee is the greater of $20,000 or 25% of the then-current initial franchise fee.
This means that when a franchisee sells their Creative World School business to a new owner, the new owner will receive the required training without having to pay an additional fee for it. This is a benefit to both the seller, who can market the franchise as 'training included', and the buyer, who avoids unexpected training costs on top of the transfer fee and other acquisition expenses.