Young RembrandtsFranchise in 2024: Costs, Fee & FDD
Discover the potential of investing in a Young Rembrandts franchise! From low startup costs to its proven art education curriculum, we analyze key insights, earnings, and challenges to help you decide if this creative opportunity is right for you.
Table of Contents:
Young Rembrandts is a premier education franchise founded in 1988 by artist and educator Bette Fetter. Built on the vision of making art education accessible, the franchise combines creativity with structured learning, fostering cognitive skills, critical thinking, and confidence in children. Its unique curriculum has made it a standout in the education and children’s franchise industry.
The franchise specializes in after-school drawing classes for children aged 3 to 12, focusing on step-by-step drawing, color theory, and pattern recognition. Additional offerings include summer camps, workshops, and virtual classes. Young Rembrandts primarily serves families, schools, and community organizations, appealing to parents seeking engaging and enriching activities for their kids.
With over 100 franchise locations in the U.S. and Canada, Young Rembrandts is expanding its reach internationally. Thousands of children participate daily, making it a recognized name in art education. It thrives in suburban and urban markets, often partnering with schools to deliver its programs.
Franchisees benefit from comprehensive training, ongoing support, and a turnkey model that includes proprietary lesson plans, marketing materials, and operational tools. This support system ensures a smooth onboarding process, making it accessible even for those without an art background, while creating meaningful community impact.
Young Rembrandts Franchise Insights
- Young Rembrandts operates over 100 franchise locations across the U.S. and Canada, serving thousands of children weekly through its structured and creative art programs.
- The franchise boasts a proven curriculum that aligns with children’s developmental milestones, making it both a creative and educational tool for ages 3 to 12.
- Despite its creative focus and strong curriculum, Young Rembrandts has a high 3-year franchise failure rate of 36%, highlighting the importance of due diligence and a solid business plan for prospective franchisees.
- The franchise has consistently earned accolades, including rankings on top franchise lists, solidifying its reputation in the education industry.
Young Rembrandts Franchise Key indicators
Growth YOY (%)
3%
vs industry 2%
Total U.S. Franchised Units
43
3-Year Failure Rate
36%
vs industry 9%
Sales-to-Investment ratio
3:1
How much does it cost to open a Young Rembrandts franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Young Rembrandts franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Young Rembrandts franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Young Rembrandts below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $39,500 | $39,500 |
| Office Equipment and Computer System | $2,025 | $3,325 |
| Travel and Living Expenses While Training | $1,000 | $1,800 |
| Miscellaneous Opening Costs | $300 | $1,750 |
| Initial Inventory of Art and Teaching Supplies | $1,000 | $1,500 |
| Initial Inventory of Marketing and Promotional Materials | $700 | $900 |
| Liability Insurance | $750 | $2,000 |
| Additional Funds – First 3 Months of Operation | $1,000 | $3,500 |
| TOTAL | $46,325 | $54,275 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Young Rembrandts franchise, the required capital involves both the initial investment costs and a net worth requirement set by Young Rembrandts. Let’s take a closer look below:
- Initial Investment The total estimated initial investment for a Young Rembrandts franchise ranges from $46,325 to $54,275. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement Young Rembrandts typically requires franchisees to have a minimum of $25,000 in liquid assets. This ensures sufficient resources to manage upfront costs, ongoing operational needs, and any unforeseen expenses during the early stages of business operation.
- Net Worth Requirement While Young Rembrandts does not specify a formal net worth requirement, it is generally recommended that franchisees have a net worth of at least $100,000. This includes the value of personal assets like real estate, investments, and savings, minus any liabilities, to ensure long-term financial stability and resilience.
How much does a Young Rembrandts franchise owner make?
Calculating the salary of a Young Rembrandts franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Young Rembrandts franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Young Rembrandts Revenue & Gross Sales
In recent years, Young Rembrandts has demonstrated steady financial performance, with a median gross sales figure of $150,442 reported across its franchise locations. This figure reflects the system’s ability to generate consistent revenue through its structured art education programs.
Which key factors impact the average revenue performance of Young Rembrandts franchisees?
The U.S. franchisee median gross sales performance for Young Rembrandts likely reflects a combination of factors, including increased demand for after-school enrichment programs and the franchise’s ability to adapt to market trends. As parents continue to prioritize activities that enhance their children’s development, art programs that foster creativity and critical thinking remain highly appealing. Additionally, the franchise’s integration of virtual learning options may have expanded its reach to a broader audience, ensuring consistent enrollment despite external challenges. Partnerships with schools and community organizations also play a vital role in stabilizing enrollment numbers. These efforts, combined with effective marketing strategies and a proven curriculum, likely contributed to the sustained or improved median gross sales compared to the prior year.
Young Rembrandts Franchise Operational Costs
For a Young Rembrandts franchise, key ongoing operational costs are largely tied to service delivery and customer acquisition. These include expenses such as:
- Instructor Wages Since the business relies on offering classes, paying part-time or contract instructors will likely be one of your largest costs.
- Materials and Supplies Regular replenishment of art supplies like paper, markers, and other tools used in classes is essential.
- Marketing and Promotions Local advertising, partnerships with schools, and community outreach initiatives to attract and retain customers.
- Transportation Costs If instructors travel to schools or community centers to conduct classes, fuel and vehicle maintenance may be recurring expenses.
- Technology and Virtual Learning Tools Maintenance or subscription fees for any virtual class platforms or administrative software used for scheduling and communication.
These costs can vary based on location, the number of classes offered, and market conditions, but efficient management of these areas is critical to maintaining profitability.
Young Rembrandts Franchise Fees
Based on the provided data, here are the key ongoing fees associated with the franchise:
- Royalty Fee 10% on the first $75,000 in gross revenues and 8% on gross revenues exceeding $75,000 annually, with a minimum monthly royalty that increases over time (e.g., $250 in the first two years for both Gold and Silver franchises).
- National Marketing Fee Up to 2% of gross revenues, currently set at 1%, with a minimum payment of $35 per month.
There may be additional fees for other services or support, such as local advertising, technology upgrades, or training for new employees.
These ongoing fees are vital to consider when planning your franchise budget, as they directly impact profitability and cash flow.
Young Rembrandts Franchise Earnings
The most recent data shows that the median gross sales for Young Rembrandts franchises are $150,442. For owner-operators, estimated earnings amount to $27,000. These figures provide a realistic baseline for prospective franchisees evaluating potential financial outcomes.
While actual earnings may vary depending on factors such as location, market demand, and operational efficiency, diligent management and strategic local marketing are critical for maximizing revenue potential. This insight underscores the importance of understanding the cost structure and revenue potential when planning to invest in a franchise like Young Rembrandts.
How to Open a Young Rembrandts Franchise
Becoming a Young Rembrandts franchisee involves several structured steps to ensure both the franchisor and franchisee are well-prepared for a successful partnership. Here’s an outline of the process:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Initial Call Discuss your background, financial qualifications, and interest in the franchise. This is also an opportunity for you to ask questions about the business model and determine if it aligns with your goals.
- Franchise Application Complete a formal franchise application, which allows Young Rembrandts to assess your financial stability and overall suitability as a franchisee.
- Discovery Day Attend a Discovery Day to meet the leadership team, learn more about the franchise’s culture, and get an in-depth understanding of operations and support.
- Final Approval If both parties are satisfied, you’ll receive approval to move forward. At this stage, you’ll sign the franchise agreement and pay the initial franchise fee.
- Initial Training Attend the comprehensive training program provided by Young Rembrandts, covering business operations, marketing, curriculum delivery, and more.
- Set-Up Phase Begin setting up your franchise, including securing partnerships with local schools, purchasing materials, and implementing marketing strategies.
- Grand Opening Launch your franchise with support from the Young Rembrandts team to ensure a smooth start to operations.
Pros & Cons
Pros
Low Initial Investment: With a total investment range of $46,325 to $54,275, Young Rembrandts is more affordable compared to many other franchise opportunities, making it accessible for first-time franchisees.
Strong Demand: The focus on after-school enrichment programs taps into a growing market of parents seeking extracurricular activities that combine fun and learning.
Flexible Operations: As a home-based business with limited overhead and part-time hours, it offers work-life balance and scalability.
Positive Community Impact: Franchisees have the opportunity to contribute to children’s creativity and development, making the business rewarding both financially and personally.
Cons
High Failure Rate: The 36% 3-year failure rate suggests potential challenges in certain markets or underperforming locations, emphasizing the importance of thorough market research.
Limited Revenue Potential: Median gross sales of $150,442 and owner-operator earnings of $27,000 may not meet expectations for some investors seeking higher profitability.
Reliance on Schools: The business model depends heavily on forming partnerships with schools, which could be challenging in competitive or saturated markets.
Market Saturation Risk: In areas with existing locations or competing enrichment programs, franchisees may face challenges in capturing market share.
