About Creative World Franchise
Creative World is an early childhood education franchise offering opportunities since 2000.
Each center provides a full day preschool and childcare program for children from infancy through school age, using a proprietary curriculum that emphasizes creativity, exploration, and academic readiness.
The brand's purpose built facilities feature open, bright classrooms and interactive learning environments.
Creative World Franchise Cost & Fees
Minimum Investment
$2.7M
Average Investment
$4.6M
Maximum Investment
$6.5M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $65,000 to $75,000 | One-time payment upon signing |
| Royalty Fee | 5% to 7% of weekly Adjusted Gross Revenues, increasing over time of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Weekly Gross Revenues | National brand fund |
| Total Investment Range | $2,658,750 – $6,489,750 | Includes build-out, inventory, working capital |
The investment range of $2.7M–$6.5M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% to 7% of weekly Adjusted Gross Revenues, increasing over time) and marketing fee (1% of Weekly Gross Revenues) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $65,000 | $75,000 |
| Building / Leasehold Improvements, not including landscaping, irrigation, sidewalk, trail and fencing | $1,500,000 | $4,000,000 |
| Landscaping, Irrigation, Sidewalk, Trail, Fencing, Playground Equipment, and Playground Surfacing | $175,000 | $300,000 |
| Impact Fees and Utility Connection Fees | $100,000 | $500,000 |
| Land Costs | $400,000 | $900,000 |
| Architectural/Engineering, Legal & Accounting Services | $125,000 | $150,000 |
| Training Expenses (lodging, food, travel) | $3,000 | $8,000 |
| Opening Package Fee | $225,000 | $350,000 |
| Systems Standards Fee (3 months) | $750 | $750 |
| Signage | $12,000 | $20,000 |
| Opening Inventory and Supplies | $9,000 | $14,000 |
| Grand Opening Advertising | $7,000 | $15,000 |
| Utility Deposits | $3,000 | $8,000 |
| Insurance | $9,000 | $24,000 |
| Additional Funds ‒ 3 months | $25,000 | $125,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Greater of $18,750 or 25% of then-current initial franchise fee |
| Renewal Fee | Greater of $18,750 or 25% of then-current initial franchise fee |
| Technology Fee | Currently $350 per month (System Standards Fee) |
| Audit Fee | Cost of inspection or audit plus travel (if franchisee fails to furnish reports or understates revenues by 1% or more) |
| Advanced Ed Accreditation Fee | $125 Monthly |
| Additional Training | Varies (currently $1,000 per week, per trainer, plus expenses) |
| Interest | Lesser of 18% per year or highest contract rate of interest allowed by law |
| Late Payment Penalties | 5% of the late amount |
| Manuals (Replacement Copy) | $1,000 |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Inspection and Testing | Cost of inspecting and testing new products or suppliers plus travel expenses |
| Operating Assets | Will vary under the circumstances |
| Advertising Cooperative Fee | Up to 1% of your Gross Revenues |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 2 to 3 weeks for management, 2 to 4 weeks for employee/staff training. |
| Classroom Training | Management: 50.5 hours; Employee: 32 hours |
| On-the-Job Training | Management: 30 hours; Employee: 48 hours |
| Training Location | Primarily at franchisor's designated training facility in Florida for management, and at the franchisee's school or another school/training facility for employees. |
| Additional Training | Franchisees or their approved managers must attend periodic refresher training courses at their expense, including a per-day training fee. Training for new managers hired after the school's opening is also required and payable by the franchisee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive Market Area |
| Exclusive Territory | Yes |
| Territory Size | 5-mile radius around the location |
| Description | Franchisees are granted an exclusive Market Area, typically a 5-mile radius around their approved site, where the franchisor will not grant another franchise or operate a company-owned school. However, the franchisor retains the right to establish other schools or distribution channels outside this Market Area, which may compete with the franchisee. There are no minimum sales quotas, and territory rights are maintained regardless of population changes. Franchisees may not solicit customers outside their Market Area, but there are no restrictions on the franchisor or other franchisees doing so. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | 3 terms of 10 years each |
| Renewal Fee | Greater of $18,750 or 25% of then-current initial franchise fee |
| Renewal Conditions | Franchisee must have substantially complied with the agreement, maintain/remodel/expand the school to current standards or secure an approved substitute site, sign a new franchise agreement and ancillary agreements, execute general releases, satisfactorily complete training and refresher programs, and pay the renewal fee. |
| Transfer Fee | Greater of $18,750 or 25% of then-current initial franchise fee |
| Transfer Conditions | The proposed transferee must meet franchisor qualifications, all amounts due to the franchisor must be paid, the transferee and its managerial employees must complete training, the transferee must agree to be bound by the franchise agreement terms, the franchisor must approve material terms of the transfer, the franchisee must subordinate any amounts due to them, de-identify from the brand, and sign all required documents including general releases and confidentiality agreements. |
| Termination for Cause | The franchisor can terminate the agreement for various causes, including material misrepresentation, failure to complete training, failure to open the school within designated timeframes, abandonment, unapproved transfers, conviction of serious criminal misconduct, dishonest or unethical conduct, loss of the site, unauthorized use of confidential information, failure to pay taxes, breach of other agreements with the franchisor or affiliates, repeated defaults (even if cured), assignment for the benefit of creditors, or violation of anti-terrorism laws. |
| Non-Compete Period | 2 years |
| Non-Compete Details | Upon termination or expiration, the franchisee, its owners, affiliates, and immediate family members are prohibited for 2 years from having any direct or indirect interest in a competitive business operating at the former site, within a 20-mile radius of the former site, or within a 20-mile radius of any other Creative World School in operation or under construction. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Either the franchisee or one of its principal owners (holding at least 10% of voting securities) must meet the franchisor's qualifications for School managers and actively participate daily in the direct operation of the School. The School must always be managed by a full-time general manager and one other management-level employee, both of whom have satisfactorily completed the franchisor's initial training. The franchisee or a principal owner may fill one of these two management positions, and one of them must be present at the site during all operating hours. |
| Required Suppliers | Franchisees are required to purchase their Opening Package, including the computer system and designated software, only from the franchisor or its affiliate, Discount Preschool. All teaching supplies, equipment, and curriculum must also be purchased from the franchisor or Discount Preschool. Discount Preschool is the sole approved supplier for interior equipment, movable fixtures, furniture, and supplies (e.g., tables, chairs, desks, cots, cribs, shelving, tricycles, educational equipment, toys, games, puppets, school supplies, teaching supplies, curriculum, office computers, interior artwork/murals, and smallwares). Playground equipment and surfacing must be purchased from approved suppliers. |
| Supply Restrictions | Virtually all purchases are restricted. Approximately 98% of initial establishment purchases and less than 5% of ongoing operational purchases are restricted. Franchisees must operate and develop their schools according to the franchisor's System Standards, which regulate size, learning products/services, equipment, curricula, lesson plans, educational programs, business formats, methods, procedures, designs, layouts, signs, and equipment. 95% of furniture, equipment, and products for the school must be purchased from Discount Preschool to meet specifications and standards. |
| Franchisor Revenue from Suppliers | The franchisor's affiliate, Discount Preschool, generated $791,318 (96.3%) of its total revenues of $822,037 from sales to Creative World Schools franchisees in 2021. This amount represents 29.4% of the franchisor's total revenues of $2,693,252. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor's affiliate, Discount Preschool, may, at its sole discretion, finance a portion of the Opening Package Fee up to $50,000. This financing is contingent upon the franchisee obtaining other financing (e.g., SBA 504) for the school building and/or land purchase. The loan term is amortized over 20 years, mirroring the SBA 504 financing, with an APR ranging from 5% to 7%. Security is required, granting Discount Preschool a security interest in all furniture, fixtures, equipment, inventory, and other assets. Principal owners may be required to guarantee the obligations. Default results in immediate acceleration of the principal balance, increased interest (up to 18%), collection costs, and constitutes a material breach of the Franchise Agreement. |
Creative World Franchise Earnings — Item 19
Average Revenue
$1.8M
Median Revenue
$1.8M
Revenue Range
$919K – $2.6M
Sample Size
11 units
Past financial performance does not guarantee future results. Individual results will vary.
Creative World Litigation & Risk Flags
Clean Litigation RecordCreative World has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Creative World System Growth
Total Units
29
Franchised
22
Company-Owned
7
Creative World currently operates 22 franchised locations and 7 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 2 | 24 |
| 2020 | 3 | 0 | 27 |
| 2021 | 2 | 0 | 29 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 9 states: FL, GA, IL, TX, VA, MO, PA, IN, MI
Franchisor Financials (Item 21)
Revenue
$2.7M
Net Income
$417K
Total Assets
$2.0M
Audited by HILL, BARTH & KING LLC for year ending December 31.
Creative World Franchise — FAQ
The total investment to open a Creative World franchise ranges from $2,658,750 to $6,489,750, per their Franchise Disclosure Document. This includes the initial franchise fee of $65,000 to $75,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Creative World charges a royalty fee of 5% to 7% of weekly Adjusted Gross Revenues, increasing over time of gross sales, plus a 1% of Weekly Gross Revenues contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Creative World Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Creative World to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Creative World franchise owners report average revenue of $1.8M and median revenue of $1.8M. This is based on a sample of 11 units. Past performance does not guarantee future results.
Creative World has been franchising since 2000. The FDD shows an investment range of $2,658,750-$6,489,750, a 5% to 7% of weekly Adjusted Gross Revenues, increasing over time royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $65,000 to $75,000 and the total investment ranges from $2,658,750 to $6,489,750 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Creative World and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Creative World or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com