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How Much Does A Pearle Vision Franchise Cost?
The focus on eye care has increased due to the usage of computers and smartphones. And eye care centers with the right staff can help provide relief and corrective measures. Pearle Vision is one of the renowned eye care centers in the U.S., and have become more accessible due to franchising options. But how much does a Pearle Vision franchise cost?
In this article, learn more about the Pearle Vision and other requirements needed to get started.
The Pearle Vision Franchise Overview
In 1961, Dr. Stanley Pearle founded the optical center in Savannah, Georgia. He aimed to make Pearle Vision as the leading eye center for customers. In doing so, both optometrists and opticians were welcome in the practice to offer eye exams and sell frames and lenses for patients.
Twenty years later, Pearle Vision opened the eye center for franchising. Since then, the eye center chain has become one of the biggest optical retailers in the U.S. and Canada. However, they also compete with other optical chains that offer the same services and products. Among their notable competitors are LensCrafters and VisionWorks.
So far, there are more than 500 Pearle Vision centers in North America. The optical retailer aims to prioritize establishing centers in cities such as Atlanta, GA; Los Angeles, CA; San Antonio, TX; Calgary, and Vancouver.
You can start a Pearle Vision franchise by downloading the information needed to establish one. After this, a representative will contact you to provide you more information and answer any questions relating to the franchise. If interested, you’ll go through five more steps before you open your own Pearle Vision franchise.
Training
When starting a Pearle Vision franchise, you need to undergo training. They have four learning approaches. These are:
- Subject-centered
- Objective-centered
- Opportunity-centered
- Experience-centered
The franchisor conducts training through a classroom and digital setting (both online and offline) plus an on-the-job experience. The owner should also fulfill a four-day onboarding training program. This program is held in Mason, Ohio (the retailer’s headquarters). Additional training sessions include:
- PearleConnect series
- Neighborhood Eye Care Experience e-learning
- Acuity Logic Program
- Onsite EyeCare Center Training (sessions one and two)
As for the OnSite EyeCare Center Training, it takes 11 days in total to complete. Training is tailored based on the franchisee’s experience and knowledge.
The franchisor may also hold subsequent training programs that may require a franchisee’s attendance.
Territory and Obligations
Luxottica Retail North America, Inc. (the franchisor) doesn’t grant an exclusive territory to any Pearle Vision franchise. Only the territory, as agreed upon in the licensing agreement, shall be honored.
Franchisees should operate the franchised eye center, as required by the franchisor. The franchisee may manage it directly or delegate it to a designated operator.
Furthermore, franchisees should remember using the eye center only for business purposes. The franchisor doesn’t allow the franchisee to use the center for any other purpose. Plus, they should also observe local, state, and federal laws and regulations. For sales-related purposes, franchises should only offer what has been deemed required by the franchisor.
Upon signing the licensing agreement, the initial franchising term is 10 years. The franchisor may offer an additional term with a minimum of five years. However, the franchisor can only renew the succeeding term if the franchisee meets the requirements.
The Pearle Vision Franchise Cost
Based on the optical retailer’s estimate, they estimate that a Pearle Vision franchise cost is between $415,421 to $644,264 for a new franchisee. Meanwhile, for an existing one, costs might range from $405,521 to $634,264.
Pearle Vision doesn’t offer any financial assistance. However, in some instances, they might, at their own discretion, offer one if needed.
For more information about your investment and other costs, you may check the tables below for reference.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee – New Licensed Operator | $30,000 | $30,000 |
| Real Estate | $14,684 | $20,730 |
| Construction | $130,000 | $200,000 |
| A&E Fees | $16,300 | $16,300 |
| Equipment | $12,892 | $17,515 |
| Signage, Fixtures, Furniture and Décor | $93,200 | $117,200 |
| Inventory | $40,000 | $84,000 |
| Point of Sale and Computer System | $11,395 | $23,519 |
| Grand Opening Advertising | $15,000 | $15,000 |
| Training Expenses | $0 | $2,000 |
| Security Deposits | $1,300 | $15,000 |
| Insurance | $2,000 | $3,000 |
| Additional Funds | $48,750 | $100,000 |
| ESTIMATED TOTAL (new licensed operator) | $415,521 | $644,264 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 7% of gross revenues. |
| Advertising Contribution | 8% of gross revenues. |
| Grand Opening Advertising | No less than $15,000. |
| Rent | Varies. |
| Renewal Fee | $5,000 |
| Transfer Fee | Up to $7,500. |
| A&E Fees | $16,300 |
| Project Services Fees | $3,200–$5,300 |
| Third Party Service Provider Fees | $300–$1,500 |
| Frames | Varies. |
| Inventory | Varies. |
| Lab Services | Varies. |
| Additional Training | $100–$500 |
| Audit | Cost and expenses of audit (including travel and per diem costs) and attorneys’ fees. |
| Late Fees | Variable. |
| Insufficient Funds Fee | In a calendar year, $35 for the 1st incident and $100 for all additional incidents or as otherwise provided in the operating manual. |
| Financial Statement Late Fee | $250 per month for late financial statements submitted in calendar quarters of Q1, Q2, or Q3; $1,000 per month for late financial statements submitted in calendar quarter Q4. |
| Management Fee | 8% of gross revenues. |
| External Credentialing Review | Up to $100 per “optometric professional” (an ophthalmologist or optometrist). |
| Indemnification | Varies. |
| POS Support and Maintenance Fee | Not to exceed $400/month if required. |
Did You Know?
- If you own a health-related practice, you can convert that into a Pearle Vision Franchise through their Ignite Program. To do this, you need to contact a representative.
- Their Ignite program also has other benefits aside from converting a current practice into a franchise. Pearle Vision will only collect royalties on incremental sales. You’ll also get different eyewear brands and have access to systems and the supply chain.
- Pearle Vision and OneSight partnered to launch the ABSee Program. This program provides access to eye care for children at no cost. Thanks to their program, they have diagnosed 80% of children in underserved communities.
- Like other franchises, Pearle Vision also prioritizes advertising and marketing to spread the word. Plus, this allows them to become more competitive. In fact, marketing and advertising fees are part of the Pearle Vision franchise cost. Because of this approach, they won an Effie Award for their marketing efforts. They attribute this success with the help of an international ad agency as well.
- On the Pearle Vision franchise website, there’s an Entrepreneur 500 2020 badge. In fact, they’re number 58 in the Entrepreneur 500 2020 list.