FDD Talk 2017: What You Need to Know About the Young Rembrandts Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

In this FDD Talk 2017 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 2017 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Young Rembrandts franchise, based on Items 5 and 6 of the company’s 2017 FDD

• Section IV – Presentation and analysis of Young Rembrandts’ financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:

• mean, median, high, and low annual gross revenues of single territories for the 12-month period ended August 31, 2016 for the top 5%, top 10%, top 20%, top 50%, top 60%, and all 76 Young Rembrandts franchise territories (74 Gold and 2 Silver franchise territories) that have been in operation for at least 24 months as of August 31, 2016

• mean, median, high, and low wage paid to teachers for elementary classes (per class) by Young Rembrandts franchisees that responded to a survey of the franchisor in January 2017
  

• mean, median, high, and low price charged per elementary class (individual class – not session) by Young Rembrandts franchisees that responded to a survey of the franchisor in January 2017

• mean, median, high, and low 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 2017

Section I – Background Information

12 Things You Need to Know About the Young Rembrandts Franchise

Providing After-School Art Programs

1.  One of the reasons why Young Rembrandts has found success over the years is that after-school art programs are often the only way for students in an area to receive any art education. Art programs are typically the first to be cut when schools don’t have enough money, so Young Rembrandts offers a reasonably affordable alternative.

2.  Although Young Rembrandts doesn’t have any physical locations of its own, franchisees partner with preschools, elementary schools, and community centers to either augment or supply an arts education program.

3.  Young Rembrandts classes are modeled after the Montessori School philosophy of independence and freedom within limits. This means that although students are given step-by-step instructions, they are free to express their own creativity and add individual touches to their work.

4.  The franchise has developed a reputation for offering well-organized classes that are both educational and fun. According to the company, thousands of students receive art lessons each week through its after-school programs.

Offering Classes for Two Different Age Groups

5.  Although Young Rembrandts was initially created for preschool children, the program is now taught to two different age groups:  Preschool (ages 3½ to 5) and Elementary (ages 6 to 12).

6.  The Preschool program is designed to help young children maximize their development and prepare them to be better learners. Through the program, preschoolers will learn how to:

• Follow directions
• Use a pencil
• Understand and draw basic shapes
• Stay on task and focus
• Gain fine motor skills
• Learn handwriting skills
• Prepare for Kindergarten
• Increase their self confidence and self esteem
• Enhance their communication skills
• Develop their vocabulary

7.  The elementary program is designed to teach kids art techniques and vocabulary. Some of the things the kids will learn in the drawing classes are:  Portraiture, Perspective, Still Life, Art History, Color Theory, Fundamental Composition Skills, and Art Vocabulary.

8.  There are also cartoon classes available to elementary-aged children. These classes will teach kids how to:

• Create original cartoon characters
• Draw action, movement, and sounds
• Draw expressions to convey moods
• Develop a series of drawings that tell a joke

9.  In addition to regular classes, seasonal workshops that range in length from 3 to 5 days are also available. Workshops offered include: Cartoon Animals, Pirates, Under the Sea, Fashion Runway, and Enchanted Academy.

Company History

10.  Young Rembrandts was founded in 1988 by Bette Fetter after some friends mentioned that they had trouble finding art classes for their young children. Fetter, who is a watercolor artist with a degree in studio art, decided that she would start a program to teach children art.

11.  Today there are about 100 Young Rembrandts franchises in the United States, Canada, Germany, South Korea, Saudi Arabia, and Jordan.

Entrepreneur’s Franchise 500

12.  Young Rembrandts has ranked on Entrepreneur’s Franchise 500 list almost every year in the last decade, but it did not rank in 2017. The company’s highest rank was at No. 287 in 2012 and its lowest rank was at No. 479 in 2007.

Section II – Estimated Costs

• Please click here for detailed estimates of Young Rembrandts franchise costs, based on Item 7 of the company’s 2017 FDD (updated).

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Young Rembrandts’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis