Under what conditions can Creative World School take possession of the School's Site?

According to Creative World School's 2025 Franchise Disclosure Document, Creative World School has the right to take possession of the School's Site under specific circumstances. If the franchisee violates the lease agreement or any obligation to Creative World School, the franchisor can take possession of the site. However, the franchisee remains responsible for all lease obligations covering the period before Creative World School takes over the site. This is designed to protect Creative World School's interests and ensure the continued operation of the school, even if the franchisee defaults on their obligations.

To formalize this arrangement, franchisees who lease their site from a third party must sign a Conditional Assignment and Assumption of Lease, while those who own the site must sign an Agreement to Lease. These documents grant Creative World School the right to possess and operate the school if the Franchise Agreement is terminated before its expiration. This provision is particularly important if the franchisee and the landlord are related in ownership or control, as it ensures that the lease terms can be adjusted to match the length of the Franchise Agreement and reflect fair market rental value.

This arrangement is fairly common in franchising, as it protects the franchisor's brand and investment in the location. By securing the right to take over the site, Creative World School can ensure business continuity and maintain its presence in the market. Prospective franchisees should carefully review the Lease Assignment and Agreement to Lease to fully understand their obligations and the circumstances under which Creative World School can assume control of the site.