Young Rembrandts franchise unit economics
Young Rembrandts franchisees teach drawing classes to preschool and elementary school children, usually in schools and community centers, sold as per-term enrollment.
Young Rembrandts franchise at a glance
Item 19 of Young Rembrandts' 2026 FDD reports gross revenue for the year ended 31 August 2025 for all 46 franchise territories, grouped into quintiles.
Young Rembrandts’ 46 franchise territories averaged $143,084 of sales, with a median of $124,927, according to Item 19 of Young Rembrandts’ 2026 FDD, issued 25 March 2026. The 46 in that group are 100%* of Young Rembrandts’ 46 territories. Fees paid to Young Rembrandts come to about 11%* of sales. A Young Rembrandts franchise costs $51,650 to $60,100 to open.
- A Young Rembrandts franchise costs $51,650 to $60,100 to open, including a $44,500 initial franchise fee, according to the brand's 2026 FDD.
- Young Rembrandts charges a royalty of 10% of sales and a 1% brand fund contribution.
- Work out Young Rembrandts's fees at your own sales with the minimum fee calculator.
These figures come from Young Rembrandts's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
Own this franchise?
See what your numbers should look like every month.
Talk to Averan → Move your books and accounting to Averan →- The brand behind the franchise holds $8,216 of equity and $39,802 of negative working capital (cash to run the business day to day).$194,969 of current assets against $234,771 of current liabilities *, and retained earnings have fallen from $253,477 to $7,216 across two years, a drop of 97.2%.
- It distributed $68,982 in a year it earned $29,647.2.33 times its net earnings *, following $142,364 of distributions in a year it lost $64,562, which is where the equity went.
- Two of the six risk warnings conflict with the brand’s own tables.The going concern warning says the auditor’s report expresses substantial doubt. The audit opinion as the brand reported it is unmodified. The turnover warning cites nearly 50% of outlets leaving in three years. The outlet tables record 2 departures from 48 *.
- All 46 territories reported, and the median is 87.3% of the mean.46 of 46, with a median at 87.3% of the mean *, against a top quintile of $270,676 and a fifth of $52,831, which is 5.12 times.
- The mature minimum royalty takes the lowest-selling territory to 24.51%.$500 a month against $24,479 of revenue *, and it governs below $60,000, which captures the whole bottom quintile.
How much does a Young Rembrandts franchise make?
The average Young Rembrandts unit reported $143,084 of revenue in the 2026 FDD, and the median reported $124,927. The brand’s disclosure document discloses revenue and not profit, so what an owner keeps depends on the cost structure set out below. Fees come off the top first, at about 11% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.
The five groups, ranked by sales
Gross revenue by quintile, 2025
| quintile | Territories | Mean | Median | Range | Reaching the mean | Share of system revenue * |
|---|---|---|---|---|---|---|
| 1st | 9 | $270,676 | $270,425 | $229,595 to $323,308 | 5, 55.6% | 37.0% |
| 2nd | 10 | $188,561 | $186,061 | $166,326 to $219,689 | 4, 40.0% | 28.6% |
| 3rd | 9 | $122,177 | $121,666 | $96,906 to $161,227 | 4, 44.4% | 16.7% |
| 4th | 8 | $79,098 | $79,549 | $67,730 to $89,396 | 4, 50.0% | 9.6% |
| 5th | 10 | $52,831 | $58,287 | $24,479 to $64,503 | 7, 70.0% | 8.0% |
| All 46 | 46 | $143,084 | $124,927 | $24,479 to $323,308 | 21, 45.6% | 100% |
| Affiliate-owned territory | 1 | $228,821 | n/a | n/a | n/a | n/a |
Every column apart from the right-hand one is as the brand reported it; that column is marked *.
The median sits at 87.3% of the mean. $124,927 against $143,084 *, one of the narrowest gaps in this library, which is what a system of 46 similarly sized territories looks like.
The bottom quintile is the one group whose median beats its mean. $58,287 against $52,831, with 70% of it at or above the mean *, so a single territory at $24,479 is dragging that group down.
The top fifth of the system earns 37.0% of its revenue. 9 territories producing $2,436,084 of $6,582,381 *, while the bottom fifth, with 10 territories, produces 8.0%.
The brand’s own territory would sit at the top of the second quintile. $228,821, which is $774 below the top quintile’s minimum and 59.9% above the system average *, a useful benchmark, since it is the one territory run by the people who wrote the system.
Top performers
What separates the top Young Rembrandts performers
Young Rembrandts splits its locations into groups instead of publishing one average. The top group averaged $270,676 a year. The lowest averaged $52,831. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $124,927. The average was $143,084. More than half the system is below the number the brand quotes.
Decided before you open
- Site and trade area.The top band sells 5.1× the bottom band. Catchment, daytime population and neighboring businesses affect where a location falls.
- Territory.This model sells from a territory, with no storefront. Population density sets how much driving sits between jobs.
- Opening cost range.Opening costs $51,650 to $60,100, a 1.2× range inside one brand.
- Fees and the minimum.Fees run about 11.0% of sales. A minimum fee also applies, so lower-selling locations pay a higher effective rate. Work out the sales level where the percentage overtakes the minimum.
Live operating levers
- Enrollment.The license sets the number of places. Track how many are filled, the price of each, and how long families stay.
Context you underwrite around
- Locations included.These figures cover 46 of 46 locations. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded.
- What the filing does not include.Young Rembrandts’ Item 19 gives no profit or cost data for franchised locations. Ask the franchisor or current owners for cost and profit figures.
Discounts available
- Young Rembrandts charges existing franchisees $39,500 for an additional franchise.
- Young Rembrandts takes 10% off the initial fee for qualifying veterans and educators.
From Item 5 of the Young Rembrandts 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
Six risk warnings
Franchisor financial statements
| Line | 2025 | 2024 | Change * |
|---|---|---|---|
| Cash | $95,051 | $140,371 | −32.3% |
| Current assets | $194,969 | $241,455 | −19.3% |
| Current liabilities | $234,771 | $237,758 | −1.3% |
| Working capital * | −$39,802 | +$3,697 | n/a |
| Shareholder equity | $8,216 | $47,551 | −82.7% |
| Revenue | $915,507 | $933,447 | −1.92% |
| Earnings from operations | $47,256 | −$44,835 | n/a |
| Net earnings | $29,647 | −$64,562 | n/a |
| Distributions | $68,982 | $142,364 | −51.5% |
| Retained earnings, year end | $7,216 | $46,551 | −84.5% |
Every figure is as the brand reported it in the audited statements. The working capital line and the change column are marked *.
The six state-required risk warnings are these. They are out-of-state dispute resolution in Illinois, going concern, and mandatory minimum payments regardless of sales. A sales performance requirement whose loss can cost territorial rights. They also include a turnover rate put at nearly 50% of franchised outlets over three years, and financial condition. Any owner should read those six first.
The going concern factor and the audit opinion say different things. The factor states that the auditor’s report expresses substantial doubt about the brand’s ability to remain in business. The opinion as the brand reported it is a clean one with no going-concern paragraph. The only such language in the report is the standard description of management’s and the auditor’s responsibilities.
The turnover factor and the outlet tables say different things too. The factor cites nearly 50% of franchised outlets terminated, unrenewed or ceased over three years. The tables record 1 departure in 2023 and 1 in 2025 against 41 outlets at the start and 7 opened, which is 4.2% *.
The financial condition factor matches the brand’s financial statements. That is $8,216 of equity, negative working capital of $39,802, cash down 32.3% and two straight years of distributions above earnings *. That is a small company, and an owner buying support from it should ask directly how these three factors sit together.
A falling rate with a minimum
Royalty rates and minimum by quintile
| Business | Sales | Royalty on the ladder * | After the minimum * | Effective rate * | With the marketing fee * |
|---|---|---|---|---|---|
| Highest territory | $323,308 | $27,365 | $27,365 | 8.46% | 9.46% |
| 1st quintile | $270,676 | $23,154 | $23,154 | 8.55% | 9.55% |
| 2nd quintile | $188,561 | $16,585 | $16,585 | 8.80% | 9.80% |
| System average | $143,084 | $12,947 | $12,947 | 9.05% | 10.05% |
| System median | $124,927 | $11,494 | $11,494 | 9.20% | 10.20% |
| 4th quintile | $79,098 | $7,828 | $7,828 | 9.90% | 10.90% |
| 5th quintile | $52,831 | $5,283 | $6,000 | 11.36% | 12.36% |
| Lowest territory | $24,479 | $2,448 | $6,000 | 24.51% | 26.23% |
Revenue figures and rates are as the brand reported it; the four right-hand columns are marked *.
| Line | Low | High |
|---|---|---|
| Initial franchise fee, Gold | $44,500 | $44,500 |
| Everything else | $7,150 | $15,600 |
| Total | $51,650 | $60,100 |
| The fee as a share of the total * | 86.2% | 74.0% |
| As weeks of average revenue * | 18.8 weeks | 21.8 weeks |
The line items and printed totals are as the brand reported it; the “everything else” row and the two bottom rows are marked *.
The franchise fee is 86.2% of the low investment total. $44,500 of a $51,650 low total, which is 86.2% *, so an owner is buying a curriculum, a brand and a territory. The working capital allowance is $1,000 to $3,500.
The effective royalty moves 1.44 points across four fifths of the system, then jumps 14.61. That is 8.46% at the highest-selling territory and 9.90% at the fourth quintile. 24.51% at the lowest-selling once the $500 monthly minimum takes over *.
Entry costs about five months of an average territory’s revenue. $51,650 to $60,100 against $143,084 *, 18.8 to 21.8 weeks, which is light in dollars and heavy against what a territory at this scale actually bills.
The network of locations
Units opened and closed, 2023 to 2025
| Year | At start | Opened | Terminations | Non-renewals | Reacquired | Ceased, other | At end | Transfers |
|---|---|---|---|---|---|---|---|---|
| 2023 | 41 | 5 | 0 | 0 | 0 | 1 | 45 | 1 |
| 2024 | 45 | 2 | 0 | 0 | 0 | 0 | 47 | 2 |
| 2025 | 47 | 0 | 0 | 0 | 0 | 1 | 46 | 3 |
Every figure is as the brand reported it; the counts add exactly to their printed year-end totals.
The system opened zero territories in 2025 and projects 15 for the next year. Against 5 and 2 in the two years before *, and with zero agreements already signed, that projection sits well above anything the last three years produced.
Two territories left in three years, from a base of 48. 41 at the start plus 7 opened *, 4.2%, which is among the lowest departure rates in this library and sits alongside a printed risk factor citing nearly 50%.
Transfers tripled while openings stopped. 1, then 2, then 3 *, so what movement there is in this system is existing territories changing hands.
Five owners hold two territories each. 46 territories across 41 franchisees *, and each territory sits under its own agreement, with its own fee minimum.
Questions we get asked
Questions owners ask.
How much does a Young Rembrandts franchise make?
Young Rembrandts’ 46 franchise territories averaged $143,084 of sales, with a median of $124,927, according to Item 19 of Young Rembrandts’ 2026 FDD, issued 25 March 2026. The 46 in that group are 100%* of Young Rembrandts’ 46 territories. Fees paid to Young Rembrandts come to about 11%* of sales. A Young Rembrandts franchise costs $51,650 to $60,100 to open.
What does a Young Rembrandts territory bill?
All 46 territories reported for 2025. The average was $143,084 and the median $124,927, across a range of $24,479 to $323,308. By quintile the means run $270,676, $188,561, $122,177, $79,098 and $52,831.
What fees does Young Rembrandts charge?
The royalty is 10% on the first $75,000 of gross revenues each year and 8% above that, measured from 1 September to 31 August. Young Rembrandts charges a national marketing fee currently at 1% of gross revenues. A Gold franchise has a minimum monthly royalty rising to $500 from year five, and the marketing fee has a $35 monthly minimum.
What does that work out to at Young Rembrandts?
On our reading, 9.05% of revenue at the system average and 8.46% at the highest-selling territory, because the rate falls above $75,000. Below $60,000 the $500 monthly minimum takes over, which lifts the bottom quintile to 11.36% and the lowest-selling territory to 24.51%. Adding the marketing fee puts one percentage point on each of those.
How much does a Young Rembrandts franchise cost to open?
$51,650 to $60,100 for a Gold franchise, of which the $44,500 franchise fee is 86.2% of the low end. A Silver franchise has a $39,500 fee, and an existing owner pays $39,500 for an additional franchise. Veterans and educators qualify for a 10% discount.
What are the six risk warnings at Young Rembrandts?
Out-of-state dispute resolution in Illinois, going concern, mandatory minimum payments regardless of sales, a sales performance requirement that can cost territorial rights, a turnover rate put at nearly 50% over three years, and financial condition. Each one is there because a state regulator required it.
What is the franchisor's financial condition at Young Rembrandts?
Small, and thinner than it was. The audited statements show shareholder equity of $8,216 against $47,551 a year earlier, current liabilities exceeding current assets by $39,802, cash down 32.3% to $95,051, and revenue of $915,507. It earned $29,647 in 2025 after losing $64,562 in 2024, and distributed $68,982 and $142,364 in those two years.
Do the risk factors match Young Rembrandts’s own numbers?
Two of them read differently from the brand’s own figures. The going concern warning describes an auditor’s report expressing substantial doubt, while the opinion as the brand reported it is unmodified. The turnover warning cites nearly 50% of outlets leaving over three years, while the outlet tables record two departures. The financial condition warning is supported by the balance sheet. An owner should put all three to the brand directly.
- The filing gives no profit figure. The filing reports sales and not earnings, so what an owner keeps is not disclosed.
- The filing breaks out no cost lines. Wages, rent and cost of goods are not broken out, so margin cannot be rebuilt from the document.
Questions worth putting to Young Rembrandts
These are questions the Young Rembrandts filing leaves open. An owner or a buyer can put them to Young Rembrandts directly.
- What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
- Which factors does Young Rembrandts see in its highest-selling locations, such as trade area, years open and size?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Young Rembrandts locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. Checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Which side of $75,000 are you on?
We review your unit economics and cash forecast and build your reporting around your effective royalty rate against the 10% and 8% steps, revenue against the $60,000 minimum threshold. Where your territory sits among the five quintiles.
Talk to Averanthe franchise library, all 447 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners
Young Rembrandts reads against the rest of the music and art group: Bach to Rock · School of Rock · We Rock The Spectrum. The music and art guide compares all of them on the same figures.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- Money arrives before the service does. How should that be booked?It explains deferred revenue and why the bank balance and the profit line disagree.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What should I be looking at every week?It lists the handful of numbers that move before the P&L does.
- Do I need a bookkeeper, a controller, or a CFO?It explains what each role owns and when the next hire pays for itself.
Where these figures come from.
Every figure here comes from Young Rembrandts Franchise, Inc.’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear, the figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Young Rembrandts® is a registered trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Young Rembrandts Franchise, Inc., 2026 Franchise Disclosure Document, issued 25 March 2026.