Pearle Vision
Pearle Vision offers retail optical EyeCare Centers providing eyeglasses, sunglasses, and contact lenses. Known for on-site finishing labs, it operates in the vision care industry alongside optometric offices.
About Pearle Vision
Pearle Vision is an American chain of eye care stores. It is one of the largest franchised optical retailers in North America. The company was acquired by Luxottica, an Italian eyewear company, in 2004. As of December 31, 2018, Pearle Vision operated 110 corporate stores and had 419 franchises throughout North America.
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Pearle Vision franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a new Pearle Vision EyeCare Center ranges from $778,696 to $1,228,956. This includes payments ranging from $277,398 to $542,954 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on whether the franchisee is existing or new. Existing franchisees can waive their $20,000 initial franchise fee, while new franchisees pay a reduced fee of $10,000 [p.324]. This fee includes the Franchisee Onboarding Training Program for the franchisee and one additional individual; additional attendees do not incur extra costs [p.57].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 7% of net dispensing sales [p.81]. For EyeCare Centers developed pursuant to a Development Agreement, the royalty rate can be 4.9% or 5.9%, depending on the number of centers involved, but it will never be less than 3% of Gross Revenues [p.21, p.139]. Advertising fees are 6% and 2% (respectively) of net dispensing sales for national and local advertising [p.81].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts. The provided FDD sections discuss requirements for executing a general release upon transfer but do not detail the specific process or requirements for selling or transferring your franchise.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory according to the excerpts [p.59, p.58]. You may face competition from other franchisees, outlets owned by the company, and other channels of distribution or competitive brands that the company controls. This is true both within and outside any defined territory, with no implied exclusivity granted [p.30, p.141].
What training and ongoing support does the franchisor provide?
The franchisor provides a comprehensive training program that includes onboarding e-learning series, recruitment and selection of staff training, and Manager and Store Employee Onboarding Training Program. This training is designed to support the opening and ongoing operation of the EyeCare Center and may vary based on the franchisee's experience and operational needs [p.46, p.49]. Additionally, the franchisor offers guidance and support throughout the onboarding process but emphasizes that franchisees are responsible for operating their business and managing employee training and supervision [p.57].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to provide actual or potential financial performance information of its outlets under certain conditions [p.74]. However, except for the information specified in Item 19, the franchisor does not make any representations about future financial performance and does not authorize employees or representatives to do so either orally or in writing [p.82].
What am I restricted to selling, and where must I buy supplies?
You are required to offer for sale the products and services specified by the franchisor, including displaying merchandise in a certain manner and maintaining a sufficient supply of frames and inventory. You may need to purchase items from the franchisor or a limited group of suppliers designated by them, which could potentially be more expensive than other options [p.3].