How to Finance an Eye Level Learning Franchise: Center Costs
By Anthony Cornella
An Eye Level Learning franchise loan finances a small, storefront education business: a supplemental math and English learning center for children, built around enrollment rather than inventory or heavy equipment. Lenders evaluating these loans focus on the owner, the center’s location and lease, and a realistic plan for enrolling students.
This article explains what the brand is, what goes into the cost of opening a center, how the brand’s SBA Franchise Directory listing helps, the financing routes that fit a new or existing center and how to prepare a loan request that stands up to review.
US Professional Funding is not affiliated with, sponsored by or endorsed by Eye Level Learning; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Eye Level Learning Franchise Loan at a Glance
- Franchisor: Daekyo America, Inc., which offers Eye Level franchises in the United States solely through its FDD.
- Brand history: Eye Level says it was established in 1976 and originated in Korea.
- System size: the company reports over 200 independently owned and operated centers throughout North America, with programs in 20 countries and over 2 million children enrolled.
- Programs: Math and English at every center, with some centers also offering Korean; the company serves ages 3 to 15, and classes run about one hour per subject.
- Fees and investment: the initial franchise fee, ongoing fees and estimated initial investment are disclosed in Items 5, 6 and 7 of the current FDD, which prospective owners receive before signing.
- Application: the franchise application asks for net worth, income, the amount and source of funds to invest, a resume and a business plan if available.
- SBA Franchise Directory: listed as Eye Level Learning Centers (code S0595), with no additional directory note.
What Is Eye Level Learning?
Eye Level is a supplemental education program for children that, according to the company, was established in 1976 and originated in Korea. It now operates in 20 countries, and the company reports over 2 million children enrolled. In the United States, franchises are offered by Daekyo America, Inc.
The concept. Eye Level centers teach Math and English using a self-directed learning approach, in which students work through leveled material at their own pace with guidance from instructors. The company says all centers offer Math and English, and some also offer Korean. Students typically attend sessions of about one hour per subject, and new families start with an orientation and diagnostic test to place the child at the right level.
The format. An Eye Level center is a small classroom space, usually in a retail or office setting close to schools and family neighborhoods. Owners run the business side, build enrollment, hire and train instructors and work with parents. The company describes its centers as independently owned and operated.
Why lenders view it the way they do. A lender sees an established curriculum and brand with modest fixed-asset needs. The risks are the usual ones for education centers: a slow enrollment ramp, reliance on local marketing and school-year seasonality. Because there is little hard collateral, the owner’s personal strength and the plan for building enrollment carry the deal.
Eye Level Learning Franchise Costs
Initial franchise fee. Eye Level’s fee is disclosed in Item 5 of the FDD. It typically covers the right to operate a center under the brand, initial training and opening support. Ask whether any part is refundable and whether reduced fees apply to additional centers.
Lease and build-out. Centers lease classroom-sized space. Costs include deposits, rent during build-out, light construction such as partitions and lighting, flooring, paint, restrooms where required, and interior and exterior signage. Lenders want the lease term to cover the loan’s repayment period.
Furniture, technology and materials. Student tables and chairs, instructor stations, reception furniture, computers, printers, internet service and the initial supply of learning materials.
Marketing and working capital. Grand opening marketing, local outreach to schools and community groups, and enough cash to cover rent, payroll and royalties until enrollment covers expenses.
Total investment. The FDD’s Item 7 table gives the estimated range and the assumptions behind it. For an education center, the categories usually include:
- Initial franchise fee
- Lease deposits and rent during build-out
- Leasehold improvements
- Furniture and fixtures
- Computers, software and office equipment
- Signage
- Initial learning materials and supplies
- Training travel and expenses
- Grand opening marketing
- Insurance, licenses and professional fees
- Additional funds for the initial operating period
Read each line, its range and the length of the period that the additional funds are meant to cover. Lenders will compare your budget with Item 7, and a request that falls well below the FDD estimate draws questions.
Ongoing Fees and How They Affect Your Loan
Royalties and other recurring fees. Item 6 of the FDD sets out the royalty and every other recurring charge, which for education franchises can include per-student or per-subject fees, material charges, technology fees and advertising contributions. Understand how each is calculated, because fees tied to enrollment rise as the center grows, while fixed fees weigh more heavily in the early months.
Transfer and renewal fees. Item 6 and Item 17 also cover transfer and renewal. These matter if you plan to buy an existing center or sell later.
How lenders factor these costs in. A lender sizing an Eye Level Learning franchise loan will model enrollment month by month, apply the tuition you plan to charge, subtract every Item 6 fee, rent, payroll and materials, and then compare the result with debt service. School-year seasonality matters here: enrollment can move with the academic calendar and summer schedules. Our article on seasonality and cash flow in education businesses explains how lenders handle those swings.
Franchisor Requirements for New Owners
Eye Level’s application gives a clear picture of what the franchisor reviews:
- Financial position: total assets, liabilities and net worth, plus annual income and expenditures.
- Funds to invest: the total amount the applicant plans to invest and where it comes from.
- Background: a resume, and a business plan if the applicant has one.
- Commitment: whether the applicant plans to run the center full time or part time, preferred locations and timing for training and opening.
The application does not state a minimum net worth or liquidity figure, so ask the franchise team and check the FDD. Lenders will look at the same information, so the numbers you give the franchisor should match your loan application.
The approval process. Applicants submit the application, receive the FDD, speak with the franchise team and, once approved, sign the franchise agreement, choose a site and complete training. The application form itself notes that Eye Level franchises are offered only by means of the FDD.
Ways to Own an Eye Level Center
Opening a new center. Most owners start from scratch. Financing a new center is a start-up loan: there is no history, so lenders look at the owner’s credit, liquidity and a credible enrollment plan. See how we approach education center start-up financing.
Buying an existing center. A resale gives lenders a student roster, tuition history and financial statements to underwrite. The buyer needs franchisor approval and must take on the franchise agreement or sign a new one. Our guide to buying a franchise resale covers transfer approval, and our education center acquisition loans page explains purchase financing. When curriculum rights pass to a new owner, read our article on curriculum license transfers in education franchises.
Adding centers. Owners with a stable first center may add more in nearby markets, subject to franchisor approval and territory terms in Item 12.
Financing Options for an Eye Level Learning Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan is often the most practical route for a new center. It can finance the franchise fee, build-out, furniture, technology, materials and working capital in one loan.
SBA 504 loans. The 504 program is for owner-occupied real estate and long-lived fixed assets. Most centers lease space, so 504 rarely applies unless an owner buys a building for the center.
Conventional term loans. Borrowers with strong financials, or owners buying a second center with a track record, may use a conventional business loan.
Equipment financing. Computers, furniture and signage can be financed separately, though in a classroom business these items are usually small enough to include in the main loan.
Working capital and lines of credit. The early months, when enrollment is still building, and the swings of the school calendar are where cash runs short. A line of credit or working capital for education centers can cover payroll and rent while the roster grows.
Seller financing on resales. In some center sales, the seller carries part of the price. A seller note must be acceptable to the senior lender, is typically subordinate to it and may be limited by SBA program rules.
SBA Loans for Eye Level Learning Franchisees
SBA lenders use the SBA Franchise Directory to confirm that a brand’s franchise agreement has been reviewed for eligibility. A listing does not approve any borrower; it removes a step so the lender can focus on the owner and the business plan.
Eye Level’s listing. Eye Level appears on the directory as Eye Level Learning Centers under code S0595, with no additional note. In plain English, that means lenders can use the standard franchise review for an Eye Level loan without any brand-specific restriction on the franchise documents.
SBA tips. The SBA 7(a) program maximum is currently $5 million, far above what a single learning center needs, though program rules can change. Our article on SBA loans for education businesses explains what lenders ask for in this industry, and our SBA loan calculator can help with rough payment estimates; results are for planning only and are not an offer or approval.
How Lenders Evaluate an Eye Level Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and expect a personal guarantee.
Net worth and liquidity. With few hard assets, lenders want to see the cash you contribute and the reserves left after opening.
Industry and management experience. Teaching, tutoring, school administration or business management experience strengthens a request, and lenders also consider whether the owner will run the center full time or rely on a manager.
Business plan and projections. Strong projections show enrollment by month, the subjects students take, tuition, instructor staffing ratios, every Item 6 fee and the timing of the school year. They should also explain the local market: nearby schools, family demographics and how the center will reach parents.
The FDD and franchise agreement. Lenders read Items 5, 6, 7, 10, 12, 17 and 19. Our explainer on how lenders read an FDD covers what matters most.
Site and lease. Visibility to families, parking and safe drop-off, proximity to schools and a lease term that matches the loan all factor into approval.
Historical financials for resales. Expect to provide enrollment records, tuition history, profit and loss statements and tax returns, along with details of any prepaid tuition that a buyer would need to honor.
Enrollment: The Real Collateral
In an education center, the most valuable asset is not the furniture; it is the student roster and the reputation that keeps families enrolled. For a start-up, lenders rely on the owner’s plan to build that roster. For a resale, they want to see how stable it is: how long students stay, how many take more than one subject and how enrollment moves through the year.
Buyers should also confirm how prepaid tuition is handled at closing, whether instructors are staying and how the transition will be communicated to parents. A smooth handoff protects the cash flow that repays the loan.
Multi-Unit Growth
Owners who build a strong first center often look for a second location nearby, which lets them share management and marketing. Lenders financing a second center review the first center’s results, the owner’s management plan and the new site’s lease. Each new center requires franchisor approval and its own franchise agreement.
Real-World Scenarios
A former teacher opening a first center. A former teacher signs an Eye Level agreement, leases space near several elementary schools and uses an SBA 7(a) loan to fund the build-out, furniture, materials and working capital, keeping a personal reserve for the first school year.
A parent buying an existing center. A parent whose children attended an Eye Level center buys it from a relocating owner. The lender reviews enrollment and tuition records, the franchisor approves the transfer and the buyer uses an SBA 7(a) loan with a small seller note.
An owner opening a second center. An owner with a well-established center opens a second location in a neighboring town. The lender underwrites both centers together and approves a conventional loan for the new build-out.
Common Mistakes to Avoid
- Projecting full enrollment from the first month instead of a gradual ramp
- Ignoring summer and school-calendar swings in cash flow
- Leaving out per-student, materials or technology fees from projections
- Signing a lease shorter than the loan term
- Buying an existing center without verifying enrollment and prepaid tuition
- Spending all available cash on build-out and leaving no operating reserve
For more pitfalls in this industry, see common education business loan mistakes.
Next Steps to Finance Your Eye Level Learning Franchise
Step 1: Apply and request the FDD. Submit the franchise application and review the FDD with a franchise attorney, focusing on Items 5, 6, 7, 12, 17 and 19.
Step 2: Organize your finances. Prepare a personal financial statement and confirm the source of the funds you plan to invest.
Step 3: Research the market. Study nearby schools, family demographics and competing programs to support your enrollment plan.
Step 4: Build projections. Model enrollment, tuition, staffing and every Item 6 fee month by month.
Step 5: Secure a site and apply. Negotiate a lease, gather documents and submit your loan request.
Step 6: Close, train and open. Coordinate closing with training, build-out and grand opening marketing.
Eye Level Learning Franchise Loan FAQs
How much does it cost to open an Eye Level center?
The estimated initial investment is in Item 7 of the current FDD. Your actual cost depends on the size of the space, local rent and build-out, and how much working capital you hold back.
What is the Eye Level franchise fee?
The initial franchise fee is disclosed in Item 5 of the FDD. Ask the franchise team whether any discounts apply for additional centers.
What royalty does Eye Level charge?
Royalties and other recurring fees are set out in Item 6 of the FDD. Review how each fee is calculated so your projections are accurate.
How much net worth or liquid capital do I need?
The franchise application asks for net worth and the amount and source of funds to invest but does not state a minimum. Ask the franchisor and review the FDD.
Can I get an SBA loan for an Eye Level Learning franchise?
Yes, Eye Level Learning Centers is listed on the SBA Franchise Directory with no additional note, so SBA lenders can consider an application, subject to normal underwriting.
Can a first-time owner get an Eye Level Learning franchise loan?
Yes. Lenders will focus on personal credit, liquidity, any teaching or management background and a realistic enrollment plan.
Can I buy an existing Eye Level center?
Yes, with franchisor approval. Lenders will review enrollment, tuition records, prepaid tuition and the center’s financial statements.
Does Eye Level offer financing?
The materials we reviewed do not describe a franchisor financing program. Check Item 10 of the current FDD.
How long is the Eye Level franchise term?
The term, renewal and transfer conditions are set out in Item 17 of the FDD. Lenders compare the remaining term with the loan’s repayment period.
What documents will a lender ask for?
Typically personal tax returns, a personal financial statement, a resume, a business plan with projections, the FDD and franchise agreement, the lease or letter of intent and, for a purchase, the center’s financials and enrollment records.
Final Thoughts
An Eye Level Learning franchise loan is a small-business loan built on enrollment. Owners who read the FDD closely, budget for a gradual ramp, respect the school calendar and keep a healthy reserve put themselves in the best position to open and grow a center.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, working capital and expansion for established brands. Learn more about our franchise financing and education business financing solutions.
