Under what condition is Creative World School's approval or consent considered valid?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
If you want to propose a new supplier of Operating Assets (other than us or our affiliates), you agree to submit to us sufficient written information about the proposed new supplier to enable us to approve or reject either the supplier or the particular items.
We will have at least 90 days from receipt of the information to approve or reject the proposed new supplier or items.
We may change, alter or amend such approval or review periods from time to time.
We may consider in providing such approval not just the quality standards of the products or services, but their delivery capabilities, financing terms and ability to service our franchise system as a whole. We may terminate or withhold approval of any Operating Assets, or any supplier of such items, that does not meet our quality standards by giving you written notice. If we do so, you agree to immediately stop purchasing from such supplier or using such Operating Assets in your School until we notify you that such supplier or such Operating Assets meet our quality standards. At our request, you agree to submit to us sufficient information about a proposed supplier and samples of the proposed Operating Assets for our examination so that we can determine whether they meet our quality standards. We also must have the right to require our representatives to be permitted to inspect the proposed supplier's facilities at your expense. Notwithstanding the foregoing, we may limit the number of approved suppliers with whom you may deal, designate sources that you must use, and/or refuse any of your requests for any reason, including that we have already designated an exclusive source (which might be us or our affiliate) for a particular item or service or if we believe that doing so is in the best interests of the CREATIVE WORLD SCHOOL® system.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, when a franchisee proposes a new supplier of operating assets (excluding Creative World School or its affiliates), the franchisee must submit sufficient written information about the proposed supplier. This allows Creative World School to either approve or reject the supplier or the specific items they offer.
Creative World School has a period of at least 90 days from the receipt of the information to make a decision. However, Creative World School retains the right to modify these approval or review periods as needed. In evaluating a potential supplier, Creative World School considers not only the quality standards of the products or services but also factors such as delivery capabilities, financing terms, and the supplier's ability to service the entire Creative World School franchise system.
Creative World School maintains the authority to terminate or withhold approval of any operating assets or suppliers that do not meet their quality standards, providing written notice to the franchisee. Upon such notice, the franchisee must immediately cease purchasing from the supplier or using the operating assets in their school until Creative World School confirms that the supplier or assets meet the required standards. Creative World School may request additional information and samples for examination and may also require the right to inspect the supplier's facilities at the franchisee's expense.
Creative World School also retains significant control over the supply chain, including the ability to limit the number of approved suppliers, designate mandatory sources, and refuse requests for any reason. This includes situations where Creative World School has already designated an exclusive source (potentially themselves or an affiliate) for a particular item or service, or if they believe that doing so is in the best interests of the Creative World School system. This indicates that franchisees may have limited flexibility in choosing suppliers and must adhere to Creative World School's decisions to maintain brand consistency and quality standards.