Franchisel.com — FDD Diligence Memo
Young Rembrandts
Generated 2026-04-06 · 2026 FDD · Government-filed source
Young Rembrandts
2026 FDD Diligence Memo
Composite score based on six FDD-derived dimensions.
Sys Health
7
Red Flags & Key Signals
Item 2 shows multiple executives hired within 2 years of this FDD filing. Leadership instability can affect franchisee support quality during transitions.
Avg $228,820 from government-filed FDD. Transparent disclosure is a positive signal.
At least one key executive has disclosed prior franchise system experience — associated with better franchisee support and system discipline.
Investment Overview
Items 5, 6, 7Total investment range: Not disclosed. Initial fee: $0. Royalty: —. Marketing fund: —.
Item 19 — Revenue
Item 19 — 2026 FDD (government-filed)Item 19 discloses avg revenue of $228,820 (Annual).
Sample: WeakThe FDD does not specify how many units were included in this figure.
Item 20 — System Health
Item 20 — 2026 FDDSystem flat — net 0 units in reporting period.
→ StableUnit count essentially unchanged.
Total Units
0
Net Growth
+0
Turnover
0%
Year-over-Year Trends
2026 FDDOpened
+0
Closed
-0
Net
+0
Prior-year Item 19 revenue data not available. Unit data above covers the reporting period in the 2026 FDD.
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19Revenue type unclear
The FDD does not clearly specify whether figures are gross sales, net sales, or a profit metric. This limits comparability.
Profit not disclosed
Item 19 reports revenue only. No expense breakdown is provided. Profit cannot be determined from this disclosure alone.
All units included
Revenue figure includes all reporting units — broadest, most conservative sample basis.
Sample size not specified
The FDD does not state how many units contributed to this figure.
Current data (2026)
Revenue figures are from 2026 — recent and relevant.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
The FDD does not include audited financial statements. Ask: do you have any visibility into the franchisor's financial health? Have you ever been concerned about the company's stability?
Look for: Even anecdotal signals — changes in leadership, delays in royalty statement processing, reduced marketing fund activity.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
Item 2 shows recent leadership changes. Ask current franchisees: has the change in leadership affected support quality, speed of decisions, or the culture of the system?
Look for: Whether the new leadership has franchise operations experience. Disruption in field support after leadership transitions is common.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Management Team — Item 2 (Business Experience)
Leadership has prior franchise system experience; long-tenured executives (5+ years); recent leadership changes detected.
Item 2 · 2026 FDD · confidence: medium
⚑ Broker Conflict-of-Interest Alert
This FDD discloses that franchises may be sold through franchise brokers or Franchise Sales Organizations (FSOs). The franchisor pays referral fees to brokers who bring buyers — this is a conflict of interest. The broker is financially incentivized to recommend this brand regardless of your specific situation.
FDD language: “our franchisees a referral fee if they refer a prospective franchisee to us and it results in a franchise sale. Neither we nor any affiliate has ever franchised any othe”
Action: Ask any consultant/broker directly whether they receive a commission from this franchisor. Always verify this independently against the FDD Items 5-6.
Data sources: 2026 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2026 FDD filed with WI DFI (file #640420). Source: 640420-2026-Young-Rembrandts.pdf. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-06 by Franchisel.com.