se the web-based registration and data management software that we designate. Prior to the opening of your business, you must enter into the Active Network Software Agreement with Active Network, LLC.
From the filings
Young Rembrandts
Youth servicesSoftware purchasing at Young Rembrandts is controlled at the franchisor level, with several systems mandated for its network of 46 franchised locations. The franchise already requires FranConnect, Active Network Software, Constant Contact, and QuickBooks Online, leaving a narrow addressable market for net-new operational platforms. With only one company-owned unit and 43 single-unit operators, vendors are primarily selling into a centralized HQ decision-maker rather than multi-unit franchisees.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
12%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
2 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
ees range from $35 to $160 per month. The monthly fee you pay is based on the scale of your business. You must use only Microsoft 365 software for standard business operations and QuickBooks Online fo
er 2 part-time employees to teach classes during the first 3 months plus worker’s compensation insurance. This estimate also covers your purchase of e-mail marketing services from Constant Contact of
ating your business and in communicating with us. You must use a web based communication tool we designate for communication between us and our franchisees. Currently, the tool is FranConnect but this
Franchisor behaviours
What the franchisor requires
19 requirements the franchisor states in this filing, each in its own words; 8 explicit no's; 7 questions the text does not settle, which is not a no.
Accounting
Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesItem 8
Throughout the term of the franchise, you must purchase promotional products with our Marks, (including tote bags, pens, notepads, and apparel), instructor training manuals, e-mail marketing services, e-mail addresses and registration, data management software, word processing software and accounting and YR FDD 2026…
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We may independently access and use the information or data stored on your computer or on the web-based management system that you are required to use.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
On or before the 10th day of the month for the preceding month, the Franchisee shall submit to the Company on a form and in the manner prescribed by the Company, a correct statement signed by the Franchisee of the Franchisee's Gross Revenues received in the previous month
How the franchisor buys
Is there a franchisee advisory council, association or committee?
YesItem 11
The Young Rembrandts Franchise Advisory Council was created and is sponsored by us.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 11
We may require you to upgrade or update your computer hardware or software at any time during the term of the Franchise Agreement if we determine that the hardware or software is insufficient for the efficient operation of the Business or is incompatible with our computer system.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
2168Item 8
In 2025, our gross revenues from the sale of products and services (only email addresses) to our franchisees was $2,168 or less than 1% of our total gross revenue of $915,507.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We currently receive rebates from suppliers based on purchases by Young Rembrandts franchisees.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
5Item 8
The cost of equipment, materials and supplies purchased from us or in accordance with our specifications or from approved suppliers represents 10% to 15% of your total purchases in establishing your franchise, and 5% to 10% of your total purchases in operating the franchise.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 6
Supplier Approval Fee Costs we incur in testing Upon demand If you request approval of a supplier products and/or evaluating the not currently approved, we may supplier. charge you the costs we incur in evaluating the supplier.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
We permit you to contract with alternative suppliers who meet our criteria only if you request our approval in writing, and we grant approval.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 17
cancel assumed name, assign telephone number and internet listings, turn over all customer and school information to us
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
will (i) conduct inspections to ensure compliance;
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
The Company retains the right to prescribe additions to, deletions from or revisions to the Manual which shall become binding on the Franchisee upon being mailed or otherwise delivered to the Franchisee, as if originally set forth therein.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
Throughout the term of the franchise, you must purchase promotional products with our Marks, (including tote bags, pens, notepads, and apparel), instructor training manuals, e-mail marketing services, e-mail addresses and registration, data management software, word processing software and accounting and YR FDD 2026…
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must follow our standards and specifications in purchasing art supplies and materials, the computer system and other office equipment, and marketing materials used in operating a Young Rembrandts business.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
All payments due to us must be made by electronic funds transfer (unless in our discretion, we accept a credit card payment).
Point of sale
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We may independently access and use the information or data stored on your computer or on the web-based management system that you are required to use.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesItem 11
You must use a web based communication tool we designate for communication between us and our franchisees.
Training
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
You must attend the annual conference.
The filing answers no to 8 questions
- Is the franchisor or an affiliate itself a supplier of required products, services or systems?Item 8
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Franchise agreement
- Must the franchisor approve the franchisee's site or location before opening?Item 11
- Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Franchise agreement
- Is a minimum grand opening advertising spend required?Item 11
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Item 11
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
- Does the franchisor require minimum staffing levels or specific roles?Franchise agreement
The vendor opportunity at Young Rembrandts
Young Rembrandts operates a small, contracting franchise system of 47 total units—46 franchised and a single company-owned location. The network shrank by 2.1% year-over-year, and every franchised operator runs just one unit. For software vendors, the total addressable market is capped at 47 locations, with average unit volume of $143,084. The royalty rate is 10%, and the initial franchise term runs 10 years. This is not a high-growth target, but the centralized purchasing model means a single yes from HQ can unlock the entire system.
The operator footprint is concentrated in a handful of states: California leads with 8 units, followed by Illinois (7), Arizona (5), Texas (4), and Michigan (3). No multi-unit operators exist, so there is no tiered buying center to navigate—just the franchisor and 43 individual franchisees who must comply with technology mandates.
Who controls software purchasing
The 2026 FDD names Liz Wahl as the registered agent, but no other executives or departmental heads are disclosed. In a system this small and centrally controlled, the purchasing authority almost certainly sits with the owner or a general manager at the Illinois headquarters. Vendors should expect a lean decision-making unit, possibly a single individual, rather than a formal IT or procurement department. The absence of multi-unit franchisees means no secondary buyer personas exist in the field; franchisees are obligated to adopt whatever HQ mandates.
Mandated and current tech stack
Young Rembrandts mandates four specific software platforms across its network. Active Network Software handles operational functions, FranConnect serves as the franchise management system, Constant Contact is required for email marketing, and QuickBooks Online is the mandated accounting platform. These are named in the FDD as required systems, meaning any vendor selling against them faces a displacement sale, not a greenfield opportunity.
Because this is a youth-services concept—not a restaurant or retail chain—there is no traditional point-of-sale system listed. The tech stack reflects an administrative and marketing focus rather than transactional processing. Vendors offering complementary tools for scheduling, curriculum management, or parent communication may find whitespace, but they will need to integrate with or replace one of the existing mandates.
Procurement, renewals, and timing
Item 8 of the FDD provides no extract on procurement obligations, so the franchisor does not appear to operate a formal designated-supplier or approved-supplier program. Instead, the company mandates specific software by name, which functions as a de facto closed procurement model. Franchisees have no discretion to choose alternatives for the four mandated categories.
Renewal timing is governed by Item 17. Franchisees in good standing can exercise a single 10-year renewal option, provided they meet all monetary obligations, sign the then-current agreement, pay a renewal fee, and execute a release. Critically, the renewal agreement may contain materially different terms, including updated technology requirements. This creates a potential window for vendors: as franchisees renew, they may be forced onto new mandated platforms if the franchisor updates the tech stack in the current agreement.
With negative unit growth and a 10-year term, natural refresh cycles are slow. The most realistic entry point for a new vendor is a direct replacement of an existing mandated system at the franchisor level, which would then cascade to all locations.
How to read the Young Rembrandts FDD
The full 2026 Franchise Disclosure Document is embedded below. For software vendors, the critical sections are Item 11, which lists the four mandated systems and their vendors, and Item 17, which outlines the renewal conditions that could trigger technology changes. Item 8 should be reviewed for any procurement restrictions not captured in our extract, though none were flagged in the current filing. The operator count and unit economics in Item 19 confirm the small, single-unit nature of the system. Use this FDD to validate the addressable market and identify the specific contractual hooks that govern software adoption across the Young Rembrandts network. For a ranked target list of franchise systems matched to your software category, FranCloud can help.
Questions vendors ask
Young Rembrandts, answered from the filing
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Operator footprint
Who runs the locations
43 operators run 43 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| CA | 8 |
|---|---|
| IL | 7 |
| AZ | 5 |
| TX | 4 |
| MI | 3 |
Related Youth services brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.