Young Rembrandts Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$46,375 - $79,075
Franchise Fee
$35,550
Total US Locations
47
Business Summary
Young Rembrandts provides art classes and teaches art techniques primarily to preschool and elementary school children. These classes are delivered in-person at various venues like private and public schools, day care centers, libraries, and community centers, and also offered via live Zoom meetings. Young Rembrandts supplies proprietary weekly lesson plans and camp curriculum for its classes.
Corporate History
Young Rembrandts Franchise, Inc. was incorporated in Illinois on December 2, 1997. The business concept originated in 1988 when Ms. Bette Fetter, the current President and Founder, started a business known as Young Rembrandts. An affiliate, Young Rembrandts, Inc., was incorporated in 1994 and operated the same type of business as franchisees from 1994 to September 2009. Young Rembrandts Franchise, Inc. began actively offering and selling franchises in 2001. The affiliate owns and licenses the intellectual property, including the curriculum, to Young Rembrandts Franchise, Inc., which then sublicenses it to franchisees.
Financial Overview
Investment Range
$46,375 - $79,075
Franchise Fee (Low)
$35,550
Franchise Fee (High)
$44,500
Royalty %
10%
Marketing %
1%
Equipment Costs (Low)
$2,025
Equipment Costs (High)
$3,325
Working Capital
$2,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Young Rembrandts' auditors have expressed substantial doubt about its ability to remain in business, citing continued operating losses, negative cash flows, and a significant accumulated deficit. As of December 31, 2023, the company had an accumulated deficit of $671,304 and current liabilities exceeded current assets by $110,511. The financial condition calls into question Young Rembrandts' financial ability to provide services and support to its franchisees.
Financing Details
Young Rembrandts does not offer any direct or indirect financing, nor does it guarantee any of a franchisee's purchases, leases, contracts, or other obligations.
Performance Metrics
Total US Locations
47
Franchised Units
46
Corporate Units
1
Franchising Since
2001
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Young Rembrandts has no litigation to report in this section.
Bankruptcy History
Young Rembrandts has no bankruptcy history to report in this section.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
Young Rembrandts franchisees can renew their agreement for an additional 10-year term if they provide notice between 180 and 270 days before the current term ends. To qualify for renewal, franchisees must be current on all financial obligations, be in full compliance with the franchise agreement's material terms (including minimum royalty payments), sign the then-current franchise agreement and a renewal addendum, pay a renewal fee, upgrade their computer and software to meet current system image, and have the franchisee and owners sign a general release. The new franchise agreement may have terms and conditions that differ materially from the original.
Training & Support Program
Franchisor Assistance
Young Rembrandts provides franchisees with extensive pre-opening and ongoing support. Before opening, the franchise offers written specifications for equipment, computer systems, art supplies, and other materials, along with a list of approved suppliers. Franchisees receive a copy of the Confidential Operations Manuals and initial training for up to two people on all aspects of business operation, including marketing, sales, instruction, and financial methods. Young Rembrandts also assists in territory identification and provides initial advertising copy. Ongoing support includes proprietary weekly lesson plans for 48 weeks each year and periodic camp lesson plans, which franchisees must use. The franchisor conducts inspections to ensure compliance, offers advisory services upon written request, and makes available all changes, improvements, and additions to the system, including modifications to the Operations Manual. Young Rembrandts' staff is available for consultation on operational problems. The franchise also administers a National Marketing Fund and a Technology Fund to support advertising and technology research and development. Franchisees must use designated computer hardware and software, and Young Rembrandts provides an email address, a web-based communication tool, and initial training on required software such as Active Network, Microsoft 365, QuickBooks Online, and Constant Contact. Franchisees are required to attend supplemental and refresher training programs and an annual conference. Additionally, Young Rembrandts may establish a National Accounts program for franchisees.
Initial Training Hours
34
Training Location
Home Office in Elgin, Illinois
Ongoing Support
After opening, Young Rembrandts provides franchisees with proprietary weekly lesson plans for 48 weeks each year, along with periodic camp lesson plans. The franchisor conducts inspections to ensure compliance, offers advisory services upon written request, and makes available all changes, improvements, and additions to the system, including modifications to the Operations Manual. Young Rembrandts' staff is available for consultation on operational problems. The franchise also administers a National Marketing Fund and a Technology Fund to support advertising and technology research and development. Franchisees must use a franchisor-designated web-based communication tool and various software, and are required to upgrade their computer hardware or software as needed. The franchisor may also conduct supplemental and refresher training programs and holds an annual conference, which franchisees must attend. Additionally, Young Rembrandts may establish a National Accounts program for franchisees.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Supervisory
Territory Type
exclusive
Staff Count
2
Territory Size Requirements
Young Rembrandts defines its Gold Franchise territories to include a minimum of 75 public and private elementary schools. For Silver Franchises, available in limited areas, the territory includes a minimum of 40 public and private elementary schools.
Staffing Notes
Typically, Young Rembrandts teaching staff should have an art background and/or experience working with children. The franchisor estimates that a new franchisee might employ 2 part-time teachers during the first three months of operation. All employees must undergo background checks before teaching. The business must be directly supervised by the franchisee or a full-time manager who has completed the initial training program. If a manager is employed, they must sign a confidentiality and non-competition agreement.