Eye Level Learning Centers Franchise

Financial Health Notes

Daekyo America, Inc.'s financial statements are audited and received an unqualified opinion from its independent auditor, meaning the financial statements are presented fairly in all material respects. The company reported a net income of $150,189 for the year ended December 31, 2024, following losses of $736,204 in 2023 and $77,884 in 2022. The company maintains positive stockholders' equity. While the auditor's report does not raise a 'going concern' qualification, the notes to the financial statements indicate that Eye Level recognized full valuation allowances for deferred tax assets. This decision was based on management's assessment that it is more likely than not that the company will not realize the benefits of these deductible differences, despite having significant net operating loss carryforwards for federal income tax purposes.

Ongoing Support

After opening, Eye Level franchisees and their Center Directors are invited to complete Follow-Up Training, typically 6-12 months after the center opens. This training, lasting 6-8 hours, is conducted virtually and includes case studies and practical Q&A sessions. Eye Level also provides ongoing guidance on the learning center's operations based on franchisee reports or inspections, and offers direction on System Standards, purchasing, advertising, and administrative procedures through its Operations Manual, emails, phone consultations, and in-office visits. Franchisees are required to attend a minimum of four virtual Franchisee Meetings per calendar year. Eye Level maintains a Brand Development Fund for system-wide advertising, marketing, and public relations programs. Additional or special guidance and training are available upon request, subject to applicable charges. Franchisees also have access to the Key & Manager computer system for center management and receive support in setting up and co-managing their Google Business Profile.

Territory Size Requirements

Eye Level Learning Centers do not receive an exclusive territory. Eye Level retains the right to establish, operate, and franchise Eye Level Learning Centers at any location, engage in other business activities under other trademarks (including competing ones), and establish alternative distribution channels (such as the Internet or mobile apps) without compensating the franchisee. Eye Level franchisees may accept students residing anywhere, as long as the enrolled children can be physically present at the Learning Center at least once per week. If there is a dispute regarding which Learning Center a student should attend, Eye Level retains unfettered discretion to make that determination. Franchisees may not target advertising to potential students in close vicinity of another Eye Level Center without prior written approval, nor may they advertise for students enrolled at other Eye Level Learning Centers to transfer to their own.