This post was updated on December 6, 2017 to reflect information from Eye Level Learning’s 2017 FDD (Item 7).
Detailed Estimates of Eye Level Learning Center Franchise Costs Based on Item 7 (Estimated Initial Investment) of Eye Level’s 2017 Franchise Disclosure Document
1. Initial Franchise Fee: $2,000 to $20,000
- The fee listed includes discounts to which you may be entitled, as described in Item 5.
- The franchisor will also provide you with an initial opening kit at no charge (shipping fee included) containing instructional materials (including Booklets), progress charts, brochures, and other materials for use in operating the Learning Center.
2. Booklet Security Deposit: $5,000
3. Rent: $900 to $3,600
- The franchisor will provide a rental subsidy to you of $400 per month for the first 12 months of operating the Learning Center. The $400 rental subsidy will be credited on your statement each month that it is in effect. You must be in full compliance with the Franchise Agreement to receive the rental subsidy. You must also sign the franchisor’s Rental Subsidy Addendum.
- The estimate includes the first month’s rent (minus the $400 subsidy the franchisor will provide you).
- An Eye Level Learning Center occupies approximately 900 to 1,200 square feet of space.
- The franchisor will not accept a location where the lease term is less than three years, the space is less than 800 square feet, or you are unable to affix one of the company’s exterior signs.
- The franchisor will not permit any activity other than the operation of an Eye Level Learning Center for any site it approves.
- Eye Level Learning Centers must be located in strip shopping centers, shopping malls, free-standing units, and other venues in downtown commercial areas and in residential areas.
4. Lease Security Deposit, if Required: $0 to $5,000
5. Leasehold Improvements: $20,000 to $60,000
- Leasehold improvement costs include floor covering, wall treatments, ceilings, painting, window coverings, electrical, carpentry and similar work, and architect’s and contractor’s fees.
6. Furniture, Fixtures, Equipment, Signage, and Supplies: $7,000 to $9,000
7. Professional Fees: $1,000 to $3,000
8. Design and Architect Fees: $1,000 to $2,000
9. Computer and Tablets for Eye Level Center: $2,000 to $3,000
- The Computer System estimate includes purchases of five computers (laptops or desktops) as follows: two computers for the Eye Level Math Online Program, one computer for the Eye Level English Program, one tablet for student check in purposes, and one computer for Key and Manager (center management).
- The cost estimate also includes related components such as printers.
- This includes the Website Set-Up Fee that is payable to the franchisor.
10. Business License and Permits: $100 to $200
11. Criminal Background Check: $18 to $50
12. Pre-Opening Marketing: $6,000
- You must spend at least $6,000 on grand opening marketing for your Learning Center during the first three months your Center is open (or during the first six months your Center is open if you are taking over the operation of an existing Eye Level Learning Center).
- You may spend more than that but are not required to do so.
13. Initial Training Expenses (out-of-pocket costs): $250 to $4,000
- You must pay the cost for food, travel, lodging and other incidentals, and personal costs (if applicable) to attend Initial Training. The franchisor estimates these costs to be between $250 and $4,000 for 2 people, but this is only an estimate and will depend on many factors.
- The cost for training for up to 2 members of the management team, including yourself, is included in the initial franchise fee. The cost to train additional persons attending the Initial Training will be $150 per person, per day.
14. Insurance (12 months): $800 to $1,200
- You must obtain and maintain certain types and amounts of insurance (Item 8). The estimate contemplates insurance costs for 12 months.
15. Payroll Cost for Employees (3 months): $1,620 to $3,600
- When you open your Learning Center, you will need to hire at least one Math and one Reading/Writing Instructor. You will determine when to hire additional employees and the salary to pay them.
- This figure is an estimate and the franchisor cannot guarantee that you will not incur greater payroll expenses.
16. Eye Level Lead Management Telephone System: $400 to $600
- If you or your other owners will not assume day-to-day management of the Learning Center, the franchisor will require you to purchase Voice-Over Internet Protocol telephone technology (VoIP).
- Using the VoIP vendor you choose, telephone calls to your Learning Center must be forwarded to your cell phone when the Learning Center is closed. If you do not answer these telephone inquiries promptly, the franchisor has the right (but not the obligation) to require you to further forward such calls to Eye Level’s corporate headquarters.
- The estimated low and high costs include a one-time initial fee for the equipment, plus a monthly fee to continue using the service.
17. Additional Funds for 3 Months: $10,000 to $14,500
18. Total Estimated Initial Investment: $58,088 to $140,750
- The franchisor relied on its predecessors’ and parent company’s business experience to compile these estimates.