Under what circumstances will the Creative World School Franchise Agreement be automatically modified?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ons of non-renewal of a franchise agreement, along with the compensation requirements.
In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the
inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
The Franchisor will not approve any Site for your franchised School that is less than 9,400 square feet.
. Intending to be bound, you and we sign and deliver this Rider in 2 counterparts effective on the Agreement Date, regardless of the actual date of signature.
CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC. YOU
RIDER TO CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC. FRANCHISE AGREEMENT FOR USE IN ILLINOIS
This Rider is entered into this, 20 (the "Effective Date"), between CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC., a Florida corporation ("we," "us," "our" or "Franchisor"), with its principal business address at 25110 Bernwood Drive, Suite #104, Bonita Springs, Florida 34135, and , a whose principal business address is (referred to in this Rider as "you," "your" or "Franchisee") and amends the Franchise Agreement between the parties dated as of the Effective Date, (the "Agreement").
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- Precedence and Defined Terms. This Rider is an integral part of, and is incorporated into, the Agreement. Nevertheless, this Rider supersedes any inconsistent or conflicting provisions of the Agreement. Terms not otherwise defined in this Rider have the meanings as defined in the Agreement.
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- Termination. The following is added to Section 16 of the Agreement:
The conditions and notice requirements for termination of a franchise in Illinois are set forth in Section 19 of the Illinois Franchise Disclosure Act.
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- Questionnaires and Acknowledgements. No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Governing Law. Section 20.7 of the Agreement is amended in its entirety to read as follows:
Illinois law governs the Franchise Agreement and all related agreements. .
5 Jurisdiction and Venue. Section 20.8 of the Agreement is amended by adding the following sentence:
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any p provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
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- Waiver of Jury Trial. Section 20.9 of the Agreement is deleted in its entirety.
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- Construction. Add the following sentence to Section 20.15 of the Agreement:
Any condition, stipulation, or provision contained in the Agreement purporting to waive compliance with any provision of the Illinois Act or any other Illinois law is void.
- Site Selection. Add the following sentence to Section 4.01 of the Agreement:
The Franchisor will not approve any Site for your franchised School that is less than 9,400 square feet.
Intending to be bound, you and we sign and deliver this Rider in 2 counterparts effective on the Agreement Date, regardless of the actual date of signature.
CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC. YOU
ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC. STATE OF MARYLAND
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, the Franchise Agreement is subject to automatic modifications through addenda or riders, particularly to comply with state-specific franchise laws. For instance, franchisees operating in Illinois, Maryland, New York, and Virginia will receive riders that amend the standard Franchise Agreement. These riders address various aspects, including waivers, governing law, jurisdiction, and required disclosures, ensuring the franchise operation aligns with local regulations.
These modifications are crucial because they protect the franchisee's rights and ensure compliance with state laws. For example, the addenda specify that no statement or acknowledgement signed by the franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Creative World School. This provision overrides any conflicting terms in the original agreement, strengthening the franchisee's legal standing.
Furthermore, the riders may include specific amendments to sections of the Franchise Agreement. In Illinois, for example, the rider modifies sections related to governing law, jurisdiction, waiver of jury trial, and site selection. Similarly, in Maryland, the rider addresses general releases, limitations of claims, and the franchisee's right to bring lawsuits within the state. These changes reflect the specific legal landscape of each state and ensure that the Creative World School franchise operates within the bounds of the law.
Prospective franchisees should carefully review any state-specific riders or addenda provided with the Franchise Agreement to understand how their agreement is modified to comply with local laws. This ensures they are fully aware of their rights and obligations and that the franchise operates in accordance with state regulations. Understanding these modifications is a critical part of the due diligence process for any potential Creative World School franchisee.