FranchiseVerdict
Creative World School logo
B63/100FDD 2025

Creative World School — Litigation & Risk

Education - Children's Programs · FDD Items 3, 4 & 5

Back to overview

Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
63 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
9
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$17.2M
Avg loan size
$1.9M
Participating lenders
6

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
No
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 63/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern issue flagged — indicates potential financial instability at corporate level despite disclosed profitability
  2. 02MINORAnemic unit growth of 4.3% YoY with only 29 locations suggests weak system expansion and franchisee recruitment challenges
  3. 03MINORHigh investment ceiling ($10.1M) paired with modest average net income ($708K) yields 7-10 year payback horizon under ideal conditions
  4. 04MEDNo Item 19 (Financial Performance Representation) disclosed — cannot independently verify the $2.5M revenue and $708K net income claims
  5. 05MINORWide royalty band (5-7%) and 'Adjusted Gross Revenues' definition may obscure actual take-home profitability

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.