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Young Rembrandts Franchise ProfileChildren’s Franchises > Art & Craft Programs |
What Are the Initial Investment Requirements for a Young Rembrandts Franchise?
To open a Young Rembrandts franchise, you should be prepared for an initial investment ranging from $46,325 to $70,775. This includes a franchise fee of $39,500, which is essential to secure your franchise rights. Additionally, you need to have cash readily available between $46,325 and $54,275, along with a net worth requirement of $100,000 to $1,000,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are financially equipped to start their business.
What Are the Ongoing Fees and Financial Performance Metrics for Young Rembrandts?
Young Rembrandts franchisees are subject to a royalty fee of 10% on their revenue, along with a marketing fee of 2%. The average annual revenue per unit is approximately $175,059, with a median revenue of $150,442. While the lowest annual revenue recorded is $36,808, some units have achieved as much as $451,376. Knowing these financial performance metrics can help potential franchisees gauge the profitability and sustainability of their investment.
How Quickly Can You Expect to Break Even with a Young Rembrandts Franchise?
One of the appealing aspects of a Young Rembrandts franchise is the relatively quick breakeven time of just 12 months. This means that franchisees can expect to recover their initial investment within the first year of operations. Additionally, the investment payback period is also estimated at 12 months, allowing franchisees to plan their financial strategy effectively and anticipate when they might start seeing profits.
What Is the Growth Trend for Young Rembrandts Franchises?
The growth trend for Young Rembrandts franchises has shown stability over recent years. In 2021, there were 47 franchised units, which slightly decreased to 42 in 2022, before recovering to 44 in 2023. The presence of a single corporate unit has remained constant throughout this period. This data indicates a resilient franchise model with potential for future expansion, making it an attractive option for investors looking to enter the education and art sector.
Young Rembrandts Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Young Rembrandts Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 48 | 43 | 45 |
| Net Change YoY | -5 | 2 | |
| Franchised Units | 47 | 42 | 44 |
| Net Change YoY | -5 | 2 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Investment Overview
Young Rembrandts offers a low initial investment range of $46,325 to $70,775, making it accessible for aspiring franchisees. The franchise fee is set at $39,500, with ongoing royalty fees of 10% and a marketing fee of 2%. This structure allows franchisees to allocate resources effectively while benefiting from a recognized brand in the art education sector.
Financial Performance
Franchisees can expect an average annual revenue of $175,059, with a median revenue of $150,442. The financial potential is significant, with the highest annual revenue reaching $451,376. Notably, the breakeven period is approximately 12 months, allowing for a quick return on investment.
Franchised Units Growth
Young Rembrandts has shown a consistent presence in the market, operating 47 franchised units in 2021, 42 in 2022, and rebounding to 44 in 2023. This stability indicates a resilient franchise model that adapts to market conditions while continuing to attract new franchisees.
Operational Expenses
The average operating expenses for Young Rembrandts are approximately $992,033 annually, which accounts for 56.7% of total revenue. Key expenses include wages, payroll taxes, and consulting fees, highlighting the importance of effective cost management for profitability.
Cash and Net Worth Requirements
To become a Young Rembrandts franchisee, a cash requirement of $46,325 to $54,275 is necessary, alongside a net worth requirement ranging from $100,000 to $1,000,000. These financial prerequisites ensure that franchisees are adequately prepared for the operational demands of the business.
Corporate Structure
Young Rembrandts operates with a corporate structure that includes one company-owned unit alongside its franchised locations. This model allows for a blend of corporate oversight and franchisee autonomy, fostering a collaborative environment that supports franchisee success.
Frequently Asked Questions
The initial investment for a Young Rembrandts franchise ranges from $46,325 to $70,775, which includes the franchise fee of $39,500.