Pearle Franchise

[opticalsunshine]

Does anyone know if there is any truth to the rumor that all Pearle Vision stores are going to be franchised?

I have been hearing a few comments about this in the DFW market.

[LENNY]

Is not this the IDEA of Franchise?

[keithbenjamin]

Looks like they already are.

Pearle Vision Franchise Opportunities

[keithbenjamin]

...since 1980

http://www.entrepreneur.com/franzone...82671-,00.html

[opticalsunshine]

I realize Pearle has been franchising for many years. My question was whether or not they are going to do away with corporate stores all together and only have franchised stores.

[EyeManFla]

It has been the ongoing plan at Cole to franchise Pearle for about the last five years. Not only have the number of new corporate stores dwindled down to nothing, but the existing corporate stores have been offered to local franchise owners.

This was because Cole was putting more efforts into Sears, J.C. Penny's and the Super Target Opticals.

My best guess is that when the Cole/Luxottica "merger" takes place, the only new Pearles that will open will be franchise.

[Texas Ranger]

So, you get a Pearle franchise, then they open a "corporate" shop around the corner, like they did in NE Tarrant County, then, they compete with Sears, Penney's and Target shops; so, why would anyone want to be a Pearle franchisee? when you biggest competitor is the franchisor?

[Cowboy]

I was speaking with one of our fellow optiboarders this past weekend at V.E., and he brought something to my attention: Luxottica/Lenscrafters bought several multistore chains in our area (New England) and after leases expired, they simply shut them down.
Now there could be a possibility that this could occur with the existing corporate Pearles when the merger takes place.

:cheers:

Cowboy

[mrba]

Maybe someone from Cole or Luxottica could tell us??

[Cindy Hamlin]

It wouldn't make sense to close them all. I don't believe that Lux has a nationwide presence, but Pearle does. Pearle tends to be in less mall friendly markets.

I believe Lux bought them for the managed care business. Cole had quite the monopoly on it. Also Lux feels they will give them more credibility than eyemed.

Just my 2 cents!

[Mikef]

I do work for Luxottica!

Until the merger is complete nothing can or will be said. Not because of what is going to happen but because they can't say anything legally!

The only thing that can be confirmed is that something is going to change!

[Cowboy]

Mike,

Are you under the same legal obligation? If not, in your best guess, do feel that Lux will repeat what it did with the EyeWorlds and others of our area?

Cindy,

I somewhat disagree, but I do agree that perhaps not all will be closed. If Lux closed the Pearle locations, they still gain the Managed care, and the current clients would be forced to seek out a new provider. If that provider happens to be a Lenscrafters, then they generate more $$ per square ft. and the location proves to more profitable. Whereas, if they keep the Pearles, then they would be silly to keep as is: The accounts that Pearle has with other vendors VS. Luxs' own product would not be a valid cost effective method. The extensive overhead of stand-alone locations are also a factor as to why it would be smarter to close some if not all. the client base will simply jump to the LC's. Now if they choose to have them open just for presence sake, It would have an impact on their dept to profit ratio, this could also have an impact on their stock value. The price will increase in the beginning, but as financial numbers become released, the price will drop as earnings could prove to have decreased due to extensive debt.

thats my 1cent (I'm still short a penny)

:cheers:

Cowboy

[EyeManFla]

It is highly unlikely that any changes will take place in 2004.

In 2005 you will most likely see Luxcole sell off the remaining corporate Pearles to the other franchisees who want them, which in our case would be Clearwater and that has already been offered to us.

Corporate Pearles that don't sell would be closed only if they are close to a Lenscrafters.

Cole Managed Care would incorporate Eyemed. The debate at this moment is whether of not the independent Opticians and O.D.s that are part of Cole and Eyemed would be shut out and ColeMed could ne come the private domain of Pearle/Lenscrafters/Sears/Target, BJ's and J.C. Penny's.

NOW, what will happen when the franchisee agreements run out. Well, I'm guessing we will know that in June when the Franchisees meet in Boca.

[Mikef]

Cowboy!


I hope we have Eyeworld all over again. I think it will be like that to some extent.

We can only hope.


Mike F

[Cowboy]

How True!

:cheers:

Cowboy