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Eye Level Learning Center Franchise Costs & Fees

Date of Incorporation: 1976
Franchising Since: 1976
Headquarters: Ridgefield Park, New Jersey

Business Description: Daekyo America, Inc. is the franchisor. The learning center offers methods and programs for mathematics, English and other academic curricula to pre-school up to high-school students.

Franchise Offer: The franchisor offers a franchise to operate a learning center under the “Eye Level Learning Center” name.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.

Training and Assistance: The franchisor will train franchisees on operating an Eye Level Learning Center. Franchisees, their Operating Principal (if the franchisee is an entity) and their Center Director (if the Operating Principal will not be directly operating the Learning Center) are required to attend the Initial Training. If the Operating Principal will not also serve as the Center Director, then franchisees must also bring their Center Director to Initial Training. The franchisor has the right to require franchisees to send a separate (i.e. hired) Center Director if the franchisor determines that the franchisee identified to serve in that role is not qualified. All who are registered for Initial Training must complete a variety of Self-Directed Learning (i.e. independent study) requirements prior to traveling to attend the in-person portions of Initial Training. Prior to Center opening, the franchisor will provide at least a Welcome Email, introductory online recordings, independent learning guidance, and 5 days of in-person training (although the specific number of days may increase depending on the franchisor’s opinion of the franchisee’s experience and needs). Franchisees (or their Operating Principal if they are an entity), the Center Director and/or other previously trained and experienced employees must attend and satisfactorily complete various ongoing training courses that the franchisor periodically provides at the times and locations designated. In addition, franchisees (or their Operating Principal if they are an entity) are strongly encouraged (but not required) to attend an annual conference (if the franchisor holds one) of all franchise owners at a location designated by the franchisor.

Territory: Franchisees will operate the Learning Center at a specific location that the franchisor first must approve. In general, franchise territories comprise of a defined territory or polygon from the approved location that will provide for a population of 5,000 to 7,000 persons aged 14 and under. The franchisor derives its population figures described in the preceding sentence from the most recent U.S. census data available. If franchisees are in full compliance with the Franchise Agreement, and they meet the minimum level of Student/Subjects described in the FDD, the franchisor and its affiliates will not operate or grant a franchise for the operation of another Eye Level Learning Center at a location within the territory during the term of the Franchise Agreement.

Term of Agreement and Renewal: The length of the initial franchise term is 5 years. If franchisees are in full compliance, they may acquire 2 successor franchise terms of 5 years each (for a total of 10 years).

Obligations and Restrictions: The franchisor strongly recommends that franchisees (or, if they are an entity, the Operating Principal) personally participate in the operation of the Learning Center. The Operating Principal must be an equity owner in the franchise and have the authority to bind the franchisee in all operational decisions regarding the franchise. Franchisees must offer and sell courses for all subjects and perform all services that the franchisor periodically requires for Eye Level Learning Centers. In conducting courses, franchisees may only use the Instructional Materials and no other materials. Franchisees may not offer or sell any products or perform any services that the franchisor has not authorized. Franchisees will not solicit or advertise for prospective students in the exclusive territory of another Eye Level franchisee.

Estimated Number of Units: 1,315

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $20,000 $20,000
Booklet Security $5,000 $5,000
Rent $1,300 $5,000
Lease Security Deposit, if required $0 $5,000
Furniture, Fixtures, Equipment, Signage and Supplies $7,000 $9,000
Professional Fees $1,000 $3,000
Design and Architect Fees $1,000 $3,000
Computer and Tablets for Eye Level Center $2,000 $3,000
Business License and Permits $100 $200
Criminal Background Check $18 $50
Pre-Opening Marketing $6,000 $6,000
Initial Training Expenses (out-of-pocket costs per person) $250 $3,000
Insurance -12 months $800 $1,200
Payroll Cost for Employees (3 months) $1,620 $3,600
Additional Funds (3 months) $10,000 $15,000
ESTIMATED TOTAL $76,088 $140,050
Other Fees
Type of Fee Amount
Continuing Service and Royalty Enrollment Royalty Fee: For each reporting month, $15 times the number of newly enrolled students.
Monthly royalty will range from $36 -$29 per Subject-Student and will be based on the total number of Subject- Students enrolled in one Authorized Curricula subject.
Minimum royalty of $1,044 after one year of operation.
Play Math™ Continuing Service and Royalty Fee Monthly royalty of $30 per Play Math Student (if franchisees offer 29 or less Play Math™ subjects).
Monthly royalty of $25 per Play Math Student (if franchisees offer 30 or more Play Math™ subjects).
Korean Program Continuing Service and Royalty Fee Monthly royalty of $36 to $29 per Korean Program Student (based on number of Korean Program students offered at Learning Center).
Brand Development Fund $1.00 per Subject-Student.
Cooperative Advertising Program The franchisor may establish a local marketing cooperative for Eye Level Learning Centers in the franchisee’s area. The owners of the Cooperative will determine by vote how much franchisees will be required to contribute to the Cooperative and when their contribution will be due.
Additional Training and Assistance Currently, $150 per day plus expenses for training at the franchisor’s location, and $300 per day plus expenses for training at the franchisee’s Learning Center.
Transfer $5,000
Transfer Training Fee $1,000
Renewal Fee 10% of the then-current franchise fee.
Additional Instructional Materials $1.00 per Booklet for exceeding Instructional Materials for students.
Testing The franchisor’s costs of testing.
Computer System, Maintenance and Support The franchisor’s costs of service if we decide to implement.
Audit Cost of inspection or audit.
Administrative Fee for Late PAyment and Underpayment 1.5% on the overdue amount each month or $100, whichever is higher.
Late or Inaccurate Report Fee $200 per month for the first month franchisees fail to submit a complete and accurate report on time; $500 for the second month that this occurs; with increments of $500 per month thereafter.
Maintenance and Refurbishing of Learning Center Franchisees must reimburse the franchisor’s expenses.
Insurance Franchisees must reimburse the franchisor’s expenses.
Insufficient Funds Processing Fee $100
Management Fee $500 per person per day (plus costs and expenses).
Costs and Attorney's Fees Will vary under circumstances.
Indemnification Will vary under circumstances.
Background Checks Determined by vendor.
Relocation Fee (within defined territory) $4,000
Relocation Fee (outside defined territory) $5,000
Early Termination Fee $4,000
Credit Card Fee 2% surcharge on any fee paid by credit card.
Administrative Addendum Fee $250

The above information has been taken from the FDD of Eye Level Learning Center. Year of FDD: 2016

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