Creative World School

The franchise fee of $80,000 is approximately 45% higher than typical for childcare franchises ($40,000-$55,000). What specific startup costs and services justify this premium franchise fee?

Can you provide itemized details on the $350 monthly technology fee? What systems and support are included, and how is this fee adjusted annually?

Your average unit gross sales of $2.5M significantly exceed the typical childcare franchise range. What explains this substantial revenue advantage—is this based on larger facility sizes, higher enrollment, or premium pricing models?

The initial franchise term is 20 years compared to the typical 10-year term for childcare franchises. What are the key benefits to franchisees that justify this extended commitment period?

With a total potential term of 50 years (3 renewal options of 10 years each), how does the franchisor evaluate renewal eligibility? Are there performance benchmarks or operational standards required for renewal approval?

What specific circumstances led to the 1 unit closure in 2023 and the 1 other cessation event? Were these voluntary exits or franchisor-initiated?

Given zero litigation cases in the system's history, what is your dispute resolution process before formal arbitration is required? How many disputes have been resolved through mediation?

The agreement requires personal guarantees from all owners and their spouses. Can you clarify the scope of personal liability in scenarios where the franchise underperforms or violates agreement terms?

What ongoing support and training does Creative World School provide to justify the perfect 100/100 category score? Can you provide specific examples of training programs, coaching, and operational support?

The non-compete clause is 2 years / 20 miles. Can you clarify how this applies post-exit? Are there exceptions for selling to an approved franchisee?

How many of the current 29 units are operating as multi-unit operations versus single-unit franchisees? What multi-unit incentives or requirements exist?

What is the typical occupancy rate and enrollment capacity for Creative World School units? How does this drive the reported average gross sales of $2.5M?

The transfer fee is $20,000. Can you walk through the approval process for transfers, including any performance or financial requirements for the incoming franchisee?

Can you provide the most recent Item 19 financial performance statement? How many units reported these average and median sales figures, and what was the date of the data?

What happens to a franchisee's territory if they don't renew after the initial 20-year term? Can the franchisor offer that territory to a new franchisee immediately?

Are there any provisions in the agreement for territory expansion or additional units within the same market for existing franchisees?

What support exists if a franchisee faces declining enrollment or revenue? Are there intervention programs, coaching, or remediation plans before potential termination?

How frequently have franchisees requested renewals at the end of their initial term? What percentage of franchisees have renewed versus exited at term end?

The binding arbitration clause includes mandatory non-binding mediation first. What are the typical costs and timelines for this dispute resolution process?

Can you provide references from franchisees who have recently renewed their agreements or from those who exited in the past 3 years?