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Under what conditions will the deposit for a Creative World School franchise not be refunded?

Q: Under what conditions will the deposit for a Creative World School franchise not be refunded?

otes** - (1) All fees payable to us or our affiliate are non-refundable, except for the Deposit. At our discretion, we may require a \$5,000 Deposit when you apply to be a Creative World School franchisee. The Deposit will be credited toward the amount of the Initial Franchise Fee when you sign the Franchise Agreement. If you do not sign a Franchise Agreement within 180 days after signing the Site Assessment Deposit Agreement, then we will refund the Deposit less the greater of: (i) \$2,500; or (ii) our out-of-pocket expenses for time and effort expended in reliance upon your application. Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)

Creative_World_School Franchise · 2025 FDD

Answer from 2025 FDD Document

otes**

(1) All fees payable to us or our affiliate are non-refundable, except for the Deposit. At our discretion, we may require a $5,000 Deposit when you apply to be a Creative World School franchisee. The Deposit will be credited toward the amount of the Initial Franchise Fee when you sign the Franchise Agreement. If you do not sign a Franchise Agreement within 180 days after signing the Site Assessment Deposit Agreement, then we will refund the Deposit less the greater of: (i) $2,500; or (ii) our out-of-pocket expenses for time and effort expended in reliance upon your application.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)

What This Means (2025 FDD)

According to the 2025 Creative World School Franchise Disclosure Document, a $5,000 deposit may be required when applying for a franchise. This deposit is typically credited towards the initial franchise fee upon signing the Franchise Agreement. However, the deposit becomes non-refundable once Creative World School and the franchisee have approved a site for the school.

If a Franchise Agreement is not signed within 180 days after signing the Site Assessment Deposit Agreement, Creative World School will refund the deposit, but will deduct the greater of $2,500 or their out-of-pocket expenses incurred while processing the application. This condition protects Creative World School from losses incurred if an applicant delays or abandons the process after significant work has been done.

For a prospective Creative World School franchisee, this means that the $5,000 deposit is at risk once a site is approved. It is crucial to be certain about the location before giving final approval. Furthermore, the franchisee should be aware of the 180-day deadline for signing the Franchise Agreement to avoid losing a portion of the deposit, as Creative World School will deduct at least $2,500 or any expenses exceeding that amount.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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