Under what conditions can a Creative World School franchisee terminate the franchise agreement?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section in | |||
|---|---|---|---|
| Franchise or | |||
| Other | |||
| Provision | Agreement | Summary | |
| a. | Length of the franchise | Section | 20 years |
| term | 2.3 | ||
| b. | Renewal or extension of the term | Section 3 | If you are in good standing, you can acquire 3 successor franchises for additional 10- year terms on our then current terms and conditions |
| c. | Requirements for franchisee to renew or extend | Section 3 | Your renewal rights permit you to remain as a franchisee after the initial term of your franchise agreement expires. However, to remain a franchisee, you must meet all required conditions to renewal, including signing our then-current form of franchise agreement, which may be materially different than the form attached to this disclosure document. |
| Other conditions are: Maintain Site or | |||
| secure substitute Site, bring School into | |||
| compliance with our then current | |||
| specifications and standards, sign new | |||
| Franchise Agreement and ancillary | |||
| agreements, general releases, satisfactory | |||
| completion of training and refresher | |||
| programs and pay renewal fee. | |||
| Upon renewal you may be asked to sign a | |||
| Franchise Agreement with materially | |||
| different terms and conditions than your | |||
| original contract/Franchise Agreement. | |||
| d. | Termination by franchisee | Section 16.1 | If we breach the agreement and do not cure the breach after 60 days notice from you, you may terminate 60 days after you provide us with written notice of termination |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 53–57)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, a franchisee can terminate the franchise agreement if Creative World School breaches the agreement and fails to correct the breach within 60 days after receiving written notice from the franchisee. In such a case, the franchisee can terminate the agreement 60 days after providing Creative World School with written notice of termination.
This is a fairly standard clause in franchise agreements, allowing a franchisee recourse if the franchisor fails to uphold their end of the contract. It is important for prospective franchisees to understand what constitutes a breach of contract on the part of Creative World School and to document all communications and actions related to any potential breach.
It is also important to note the specific steps and timelines required for termination, including the written notice requirements and cure periods. Failure to follow these procedures precisely could invalidate the termination and potentially expose the franchisee to legal action by Creative World School. Franchisees should consult with an attorney to ensure they fully understand their rights and obligations under the franchise agreement before attempting to terminate it.