Can Creative World School transfer the franchise agreement?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
• If Franchisee is proposing to transfer a partial interest in Franchisee and Franchisor has an option to purchase or a right of first refusal with respect to that partial interest, Franchisor may exercise such option or right only if the proposed transferee is not a current owner or family member of a current owner of Franchisee. If the Franchisor's consent is required for any transfer (full or partial), Franchisor will not unreasonably withhold such consent. In the event of an approved transfer of the franchise interest or any portion thereof, the transferor will not be liable for the actions of the transferee franchisee.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, franchisees may be able to transfer their franchise interest, either in full or partially. However, if a franchisee proposes to transfer a partial interest and Creative World School has an option to purchase or a right of first refusal, Creative World School can only exercise that option if the proposed transferee is not a current owner or a family member of a current owner.
For any transfer that requires Creative World School's consent, the franchisor will not unreasonably withhold such consent. This implies that while transfers are possible, they are subject to approval by Creative World School, which will assess the suitability of the proposed transferee.
In the event that a transfer of the franchise interest is approved, the transferor (the original franchisee) will not be held liable for the actions of the transferee (the new franchisee). This provides some protection to the original franchisee after the transfer is completed.