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FDD Talk: The Young Rembrandts Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on April 5, 2016

in Art-Related Franchise, Child-Related Franchises, FDD Talk 2017: Children's Franchises, Franchise Earnings

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Young Rembrandts Photo by The Salvation Army

In this FDD Talk post, you’ll learn the following:

  • Section I – Background information on the Young Rembrandts franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Young Rembrandts franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Young Rembrandts’ financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • average annual gross revenues for the 12 month period ended August 31, 2014 for the top 5%, top 10%, top 20%, top 50%, top 60%, and all 47 Young Rembrandts franchisees owning 50 Gold franchise territories that achieved annual gross revenues in excess of $60,000 per franchise territory and have been in operation for at least 24 months as of August 31, 2014
  • average wage paid to teachers for elementary classes (per class) by Young Rembrandts franchisees that responded to a survey of the franchisor in January 2015
  • average price charged per elementary class (individual class – not session) by Young Rembrandts franchisees that responded to a survey of the franchisor in January 2015
  • average number of weeks programs are run at a typical elementary school (excluding summers) by Young Rembrandts franchisees that responded to a survey of the franchisor in January 2015

Section I – Background Information

It’s surprising how many adults regret the fact that they never learned to draw. It’s a regret they can correct for their own children, however, with a franchise concept like Young Rembrandts, which specializes in art classes for young children.

It was back in the 1980s when Bette Fetter, herself a mother of three, noted how many parents of young children were frustrated by the lack of art classes in the community. She also happened to be a watercolor artist with a degree in studio art, and the proverbial light bulb clicked on in her head.

She decided teaching children to draw would be the way to give them a solid artistic foundation, which she started in 1988 with the opening of Young Rembrandts. After years spent fine-tuning her methods, she started franchising the concept in 1997.

In the last 10 years, the number of domestic locations has grown slowly but steadily, increasing from 57 in 2006 to the current 90. Over those same years, the number of locations outside the U.S. has also increased, from just one in 2006 to the current 14, making the grand total number of locations 104.

Here’s how Young Rembrandts keeps kids cranking out the drawings in the children’s art classes segment:

Methods That Work

Drawing (pun intended) upon her fine arts education and background in child development (pre-school), Fetter perfected an original step-by-step process that teaches children how to draw.

She also realized the need to cater to developmental stages, which is why there are classes tailored to two different age groups, children aged 3-5 and those aged 6-12.

She also made sure that the offerings could be housed where needed most – day-care centers, parks, after-school programs, and community recreation centers.

The Benefits of Art

Education experts are widely agreed that involvement in the arts boosts overall achievement of children in the classroom. In the Young Rembrandts method, kids develop better spatial reasoning and fine motor skills, order and sequencing abilities, visualization, self-discipline, attention to detail; and expand their image vocabularies, as well as gain fundamental art skills.

Solid Values

The company’s passion for children and art comes out in the excellence staff bring to all their interactions with children, incorporating both personal integrity and respect for kids.

Besides the mechanics of drawing, children are also exposed to artistic concepts and art history along the way.

The company recognizes that contrary to popular opinion, creativity doesn’t just happen on its own – it needs instruction to fully blossom in children, building upon a solid foundation of mastering core skills. It’s also a huge confidence booster when children realize they really can draw, and draw well.

Suitable for All Learning Styles

Different children have different ways of learning ranging from visual to kinesthetic (physical) to auditory, and combinations of those as well. The Young Rembrandts method works with all three seamlessly to make sure every child is met within their learning style, and also pays attention to whether children are left-brain or right-brain dominant.

Section II – Estimated Costs

  • Please click here for detailed estimates of Young Rembrandts franchise costs, based on Item 7 of the company’s 2015 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis

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