Young Rembrandts
Bottom line
- Total investment $47K – $60K including a $45K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $143K/year (median $125K).
- Rated STRONG with a risk score of 45/100. SBA loan default rate of 0.0% across 10 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Young Rembrandts unit return on the cash you put in?
Unlevered ROIC · per unit
28%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Young Rembrandts units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$114K
on $572K purchase
Total debt
$458K
SBA $0.3M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 45 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
39 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Young Rembrandts · FDD (2026) PDF