Detailed Estimates of Eye Level Learning Center Franchise Costs Based on Item 7 (Estimated Initial Investment) of Eye Level’s 2016 Franchise Disclosure Document
1. Initial Franchise Fee: $20,000
- The initial franchise fee includes reimbursement to you for your Computer System and related components up to $2,000, a reimbursement to you for your primary signage up to $3,000, and a subsidy for your furniture up to $3,000.
- The franchisor will also provide you with an initial opening kit at no charge (shipping fee included) containing instructional materials, progress charts, brochures, and other materials for use in operating the Learning Center.
2. Booklet Security Deposit: $5,000
3. Rent: $1,300 to $4,000
- The estimate includes the first month’s rent.
- 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 treatment, 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 includes purchases of four to six computers (laptops or desktops) as follows: two computers for the Eye Level Math Online Program, one tablet for student check in purposes, one computer for Key and Manager (center management), and possibly two more computers and tablets for use in the developing English Online Program.
- The cost estimate also includes related components such as printers.
- Upon your submission to the franchisor of receipts demonstrating that you have purchased the Computer System and all related components, the franchisor will reimburse you, within 30 days of reviewing your receipts, up to $2,000 for the Computer System and related components.
10. Business License and Permits: $100 to $200
11. Criminal Background Check: $18 to $50
12. Pre-Opening Marketing: $6,000
- $6,000 is the minimum amount you must spend 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 per person): $250 to $3,000
- 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 $500 and $4,000 per person, 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. Additional Funds for 3 Months: $10,000 to $15,000
17. Total Estimated Initial Investment: $76,088 to $140,050
- The franchisor relied on its predecessors’ and parent company’s business experience to compile these estimates.