Training Overview: The training design and delivery incorporates four theories of learning and instruction—subject-centered, objective-centered, experience-centered, and opportunity-centered. The training and ongoing development incorporates classroom instruction, on-the-job type experiences in an eyecare center, along with comprehensive web-based training curricula with both online and off-line components. Prior to the opening of their licensed eyecare center, the new licensed owner will attend the four day licensed owner onboarding training program. It is typically at the franchisor’s Retail Optical North America headquarters in Mason, Ohio and in eyecare centers that it determines at its sole discretion. After completing the required Licensed Owner Onboarding training program, the required Neighborhood Eye Care Experience e-learning series, the PearleConnect series, and the AcuityLogic program, the licensed owner will complete the required session one and session two of Onsite EyeCare Center Training. Each session consists of five and one half days of additional training in an eyecare center that the franchisor determines at its sole discretion. This additional training will be customized in content based on the needs and experiences of the licensed owner. Attendance at supplemental training programs or refresher courses required by the franchisor is at its sole discretion.

Territory Granted: Franchisees will not receive an exclusive territory. If franchisees sign a license agreement, the franchisor grants franchisees the right to operate a licensed eyecare center at the specific location set forth in the license agreement. Franchisees may operate the licensed eyecare center only at this location and may not solicit or accept orders outside of the licensed eyecare center.

Obligations and Restrictions: The franchisor requires franchisees to participate personally in the direct operation of the licensed eyecare center. This can be accomplished either by franchisees being on-premises or through appointing a “designated operator” as required by the license agreement. The license agreement specifically prohibits franchisees from using the licensed eyecare center for any purpose other than the operation of a licensed eyecare center. Franchisees must comply with all applicable federal, state, and local laws, regulations, and ordinances concerning the operation, management, and maintenance of the licensed eyecare center, including, without limitation, all regulations relating to the practice of optometry, opticianry, and ophthalmology, and accessibility requirements, such as the ADA. Franchisees must offer for sale products and services the franchisor requires, including (if any), guarantees and replacement discounts, in the manner and style the franchisor requires, which may include, but not be limited to, displaying that merchandise for sale in a certain manner, including by price range.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Upon expiration of the License Agreement, the franchisor will offer franchisees a new license agreement for the business for a minimum term of five years, on the terms the franchisor is then offering to new licensed operators (or renewing existing licensed operators), if requirements are met.

Financial Assistance: Before franchisees open, the franchisor establishes a “credit limit” for each store that is based on the amount of frames, lenses and lab services it estimates the licensed eyecare center will purchase in a five-month period. Franchisees must purchase frames and lenses from the franchisor and additional inventory from an approved supplier. If franchisees purchase their initial frame assortment or other inventory from the franchisor and they meet the franchisor’s credit qualifications, it may permit franchisees to pay for their purchase in monthly installments without interest or service charge. The franchisor may also, from time to time in its sole discretion, offer financing terms for significant purchases from it. Except as described, the franchisor does not finance (or assist franchisees to finance) any other categories of expenses (such as initial license fees, site acquisition/development costs, construction or refreshing costs, or fixtures).