Vision Source Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$100,000 - $450,000
Total US Locations
3,006
Business Summary
Vision Source franchisees operate an optometric or ophthalmologic office. Franchisees diagnose vision and eye health problems, prescribe corrective vision measures like glasses or contact lenses, and provide all other eye care services legally permitted for optometrists. This includes the retail sale of eyewear and optical supplies. Vision Source offers a distinctive system to its network members for exchanging best practices, arranging price reductions from vendors for optical products and services, and providing advertising and marketing programs.
Corporate History
Vision Source, LLC was formed on April 28, 2003, as a Texas limited liability company. It has been operating under the 'Vision Source' name since its inception, though it conducted business as 'Vision Team' in Ohio prior to 2005. A predecessor entity, Vision Source, Inc., a Texas corporation, initially began offering Vision Source franchises in August 1996. Vision Source, LLC became the franchisor following a corporate reorganization in May 2003. Vision Source is ultimately owned by EssilorLuxottica, a global leader in optical retail.
Financial Overview
Investment Range
$100,000 - $450,000
Royalty %
2.5%
Equipment Costs (Low)
$40,000
Equipment Costs (High)
$250,000
Working Capital
$55,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Vision Source, LLC's separate financial statements are not included in this FDD. Instead, the document provides the audited financial statements of its affiliate, First American Administrators, Inc., which absolutely and unconditionally guarantees Vision Source, LLC's performance of its obligations to franchisees. The audit report for First American Administrators, Inc. expresses an unqualified opinion, indicating that its financial statements present fairly in all material respects. There are no notes indicating going concern issues for First American Administrators, Inc.
Financing Details
Vision Source does not offer direct financing for franchise fees or operating expenses. However, Vision Source may refer franchisees to its banking partners for third-party financing to purchase, expand, or start an office. Vision Source may also provide financial support in the form of down payment assistance or monthly credits against royalties. These credits can offset all or a portion of the interest paid on third-party loans used for purchasing or expanding an office, or for student loan repayment agreements for newly hired optometrists. To qualify for these incentives, franchisees must meet certain performance and engagement metrics, such as attending meetings, adopting Vision Source branding, and utilizing specific vendors. Loan terms from banking partners typically range from 2 to 10 years with no prepayment penalties, and lenders may take a security interest in equipment.
Performance Metrics
Total US Locations
3,006
Franchised Units
3,007
Corporate Units
0
Avg Square Footage
3,100
Franchising Since
1996
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Vision Source has no litigation or arbitration cases to disclose from the fiscal year 2024, as explicitly stated in the FDD. Therefore, Vision Source has a clean legal record with no recent lawsuits or legal disputes.
Bankruptcy History
Vision Source has no bankruptcy history to report. The FDD explicitly states that no bankruptcy is required to be disclosed for Vision Source or its key personnel.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Vision Source franchisees must not be in default of their agreement or any other agreements with Vision Source or its affiliates. They must pay all outstanding amounts and not have been delinquent with monthly sales reports or royalty fees more than once in any 12-month period. Franchisees also need to submit a renewal application at least three months before the current term ends, sign Vision Source's then-current franchise agreement, and sign a special release of claims. The renewal agreement may have significantly different terms, including the territory definition.
Training & Support Program
Franchisor Assistance
Vision Source provides pre-opening assistance by designating the franchisee's territory and offering information about accessing the System and Cooperative Buying Program. Vision Source also assists with site selection, requiring its approval for the chosen location. After opening, Vision Source administers the Cooperative Buying Program, providing opportunities for price reductions from vendors, and offers individual and network-wide consultation and advice on managing and promoting the office. Vision Source makes advertising and promotional materials available for franchisees to use (with franchisees covering reproduction costs) and provides access to human resources services through a third-party consulting firm. While most HR services are free, some customized recruiting services may incur fees. Vision Source also hosts a voluntary three-day annual meeting where speakers and participants share information, covering some meal costs for attendees.
Ongoing Support
After opening, Vision Source provides ongoing support by administering its Cooperative Buying Program, which offers franchisees access to discounts and rebates on purchases from various vendors. Vision Source offers individual and network-wide consultation and advice on managing and promoting the Eye Care Center, which franchisees can choose to follow. It also provides access to limited advertising and promotional materials and services, such as videos, forms, templates, and point-of-sale items (franchisees pay reproduction costs). Additionally, Vision Source offers human resources services through a third-party consulting firm, including policy development, payroll compliance guidance, hiring, employee relations, compensation, and benefits (most services are free, but customized recruiting may have fees). Vision Source also conducts a voluntary three-day annual meeting where participants share information and materials, with some meals provided.
Franchise Requirements
Ideal Candidate Profile
Vision Source is seeking licensed optometrists or ophthalmologists in good standing. If the franchisee is an individual, they must hold the appropriate license and directly supervise the Eye Care Center. If the franchisee is a corporate entity or partnership, it must be wholly owned by one or more licensed optometrists or ophthalmologists, and one licensed individual must be designated to maintain overall managerial control. An exception is made for those in optometry or medical school within six months of taking licensure exams, provided they obtain their license within the first twelve months of the initial term. Owners must also exercise personal, on-premises supervision over the Eye Care Center and be responsible for all business and management decisions, without Vision Source interfering with their professional judgment.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
Vision Source defines a geographic area around each franchisee's designated office location, referred to as the "Territory." Within this Territory, Vision Source commits to not establishing or franchising other Eye Care Centers under its brand names and marks. However, the document explicitly states that Vision Source does not have a minimum or maximum area it assigns as a Territory. Instead, the size of each Territory is determined based on the demographic information for the proposed area and the region from which the franchisee would reasonably expect to attract patients and customers to their Eye Care Center. The boundaries of the Territory are typically described using centerlines of highways, streets, boundary lines, or other mutually agreed-upon methods. While a franchisee receives this protected area for new Vision Source branded offices, the territory is not considered "exclusive" in the strict federal and state sense. Other Vision Source franchisees and Associate Members are permitted to conduct general advertising, direct and indirect sales, marketing, and promotional programs anywhere within a franchisee's Territory, as long as it's allowed by state law. These other franchisees and Associate Members are prohibited from engaging in direct sales within the Territory through mobile clinics/optical units or temporary/pop-up locations unless they have the prior written consent of the existing franchisee. Neither Vision Source, nor other franchisees, nor Associate Members will compensate the franchisee for any direct or indirect solicitation of patients and customers within their Territory.
Staffing Notes
Vision Source requires that the Eye Care Center always be under the direct supervision and managerial control of a licensed optometrist or ophthalmologist. Franchisees, or their owners if the franchisee is an entity, must be licensed and in good standing. An exception can be made for individuals within six months of taking their licensure exams, with the agreement becoming void if the license isn't obtained within 12 months. Franchisees are solely responsible for all business and management decisions related to their optometry practice, including selecting employees, contractors, inventory, and medical equipment, as well as handling billing procedures and patient care. Vision Source does not interfere with professional judgment and does not assert ownership of the practice or patient records.