Under what conditions can the Creative World School franchise agreement be terminated before its expiration?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
The conditions and notice requirements for termination of a franchise in Illinois are set forth in Section 19 of the Illinois Franchise Disclosure Act.
You may terminate the agreement on any grounds available by law.
(a) The provision of the Franchise Agreement that provides for termination upon bankruptcy of the franchisee may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101, et seq.)
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, the conditions for early termination of the franchise agreement vary based on the state where the franchise is located. For franchisees in Illinois, the conditions and notice requirements for termination are detailed in Section 19 of the Illinois Franchise Disclosure Act. This means that Illinois law specifically governs the circumstances under which a Creative World School franchise can be terminated in that state.
For franchisees in Maryland, the Franchise Agreement provision allowing termination upon the franchisee's bankruptcy may not be enforceable under federal bankruptcy law. Additionally, franchisees in New York may terminate the agreement on any grounds available by law. This indicates that the standard Creative World School franchise agreement is modified by state-specific riders that address termination rights and conditions.
These state-specific regulations highlight the importance of understanding the legal framework in the franchisee's particular state. Prospective Creative World School franchisees should carefully review the riders and addenda applicable to their state, and consult with a legal professional to fully understand their rights and obligations regarding termination of the franchise agreement.