Young RembrandtsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Young Rembrandts franchise requires a total initial investment of $47K – $60K, including a $45K franchise fee and an ongoing 10.0% royalty[2]. Per the 2026 FDD, average unit revenue was $143K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $47K – $60K
- 11th pct Education
- Avg gross sales
- $143K
- 3rd pct Education
- Royalty
- 10.0%
- 46th pct Education
- Units
- 47
- 48th pct Education
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 2001. Systems this mature have refined operations and brand recognition.
Franchised units fell from 46 to 45 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $47K – $60K including a $45K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $143K/year (median $125K).
- Verdict A (Top Quintile) with a risk score of 46/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Young Rembrandts Franchise, Inc.
- CEO title
- President/Secretary/Director
- Elizabeth Wahl
- Incorporated in
- IL
- HQ
- 23 North Union Street, Elgin, Illinois 60123
- Auditor
- DHJJ LTD.
- Audited financials
- Franchisor revenue
- $916K
- vs $933K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Franchisees operate art instruction studios for children, typically offering after-school and weekend drawing/painting classes using proprietary teaching methods. Day-to-day operations include teaching students in-person or hybrid formats, managing class schedules, handling parent communications, and managing instructor payroll and facility overhead.
- CEO
- Elizabeth Wahl
- Headquarters
- IL
- Founded
- 1997
- FDD year
- 2026
- States available
- 17
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $1K | $4K |
| Equipment, build-out, other | $1K | $12K |
| Total initial investment | $47K | $60K |
Source: Young Rembrandts 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$16K
11.0% margin
Unlevered ROIC
28%
EBITDA / total invested capital
Payback
3.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $47K – $60K
- Better than avg vs category
- Liquid capital req'd
- $1K – $4K
- Better than avg vs category
- Franchise fee
- $40K – $45K
- Better than avg vs category
- Royalty
- 10.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 12.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $20K |
| Renewal fee | $8K |
| Total fee load | 12.0% of rev |
Financial Performance
- Avg gross sales
- $143K
- Per unit, per year
- Median gross sales
- $125K
- Item 19 type
- gross_sales
- Sample size
- 46 units
- vs category median 14 · large
- Range (low → high)
- $24K→$323K
- Cohort dispersion (min → max)
- Quartile band
- $53K→$271K
- Bottom 25% → top 25%
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 237 Education brands
vs Education averages
How Young Rembrandts Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 47
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.1%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- -2.1%
- Net unit change last year
- 3-yr CAGR
- +2.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 3
- Projected new
- 15
- Franchisor's next-year forecast
- Transfer rate
- 6.4%
- Owners selling to other franchisees
- Continuity rate
- 97.9%
- Units that stayed open
- Ceased ops
- 2.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 7 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 7
- Loan volume
- $541K
- Median loan
- $50K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Young Rembrandts's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Modest revenue potential, no profitability disclosure, and shrinking franchise network create meaningful uncertainty about unit-level economics and system viability.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DHJJ LTD.⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 46 / 100 rating
- 01MINORDeclining unit count (-2.1% YoY) suggests system contraction and potential market saturation or franchisee dissatisfaction
- 02MEDNet income not disclosed in FDD Item 19 — impossible to validate profitability claims against $46,650-$60,100 investment
- 03MINORHigh royalty burden (10% on first $75k revenue) combined with unknown net margins creates uncertainty on actual take-home profit
- 04MINORAverage revenue of $143k is only 2.4x initial investment — thin margin for covering operating costs, rent, payroll, and royalties
- 05MINORFranchise fee of $44,500 represents 96% of minimum total investment, leaving only $2,150-$15,600 for working capital and setup
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Number of elementary schools |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | our offices or other location we designate |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 23 hrs
- On-the-job training
- 13 hrs
- Training location
- Home Office in Elgin, Illinois
- Ongoing training
- Required
- Field support
- 13 hrs/yr
- On-site visits per year
- Time to open
- 1 mo
- From signing to launch
- POS system
- Active Network
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Active Network
Item 20 · call current owners
Franchisee Contacts
39 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Young Rembrandts · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Young Rembrandts franchise?
The total investment to open a Young Rembrandts franchise ranges from $47K – $60K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Young Rembrandts franchise owners earn?
According to Item 19 of the Young Rembrandts FDD, the average gross sales per unit is $143K. The median is $125K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Young Rembrandts's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Young Rembrandts (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Young Rembrandts franchise locations are there?
As of their most recent FDD filing, Young Rembrandts has 47 total units in the United States, including 46 franchised units and 1 company-owned units.
Is Young Rembrandts a good franchise to buy?
FranchiseVerdict rates Young Rembrandts as a A-grade franchise with a risk score of 46 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.