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Business Description

Young Rembrandts Franchise;. Inc. ("we"; "us", "our" of "ourS" or "the Conipany") is an Illinois corporation incorporated on December 2, 1997, with principal office at 23 North Union Street, Elgin, Illinois 60123. Our agent for service of process is identified in Exhibit,H.

Prior Experience

In 1988, Ms. Bette Fetter, our President and Founder, began a business known as Young Rembrandts, which was incorporated as Young Rembrandts, Inc. in Illinois ori September 2,1994. Ms. Fetter designed our business concept,, format, and method of operations. From M^ch 9, 1988 to September 2009, Bette Fetter and later Young Rembrandts, Inc. offered and performed in Illinois and Wisconsin the identical services to be offered to the public by you. The address Of Young Rembrandts, Inc. is 23 North Union Street,,Elgin, Illinois 60123. Young Rembrandts, Inc. owns and licenses, the intellectual property licensed to us and sublicensed to you. In 2018, Young Rembrandts, Inc. entered into an agreement to license the Young Rembrandts curriculum in China. It does not conduct any business activitiesi other than licensing.

Business Offered

We offer the sale of fi^anchises to an individual or entity. "You", "your" and "yours" as used in this Franchise Disclosure: Document will refer to the individual who buys the; franchise or the entity that buys the franchise if you are a corporation, partnership or hmifed Uability company and all of the individual owners of the entity. If you are an eiitity, all Of your owners must sign a guaranty which means that all of the provisions of the Franchise Agreement also will apply to your owners.

Initial Fees

For our standard Gold Franchise, you pay an Initial Franchise Fee of $34,500 by certified or cashier's check when yOu sign the Agreement. In limited areas, we will grant a Silver Franchise. If you are purchasmg a Silver Franchise, you pay an Initial Franchise Fee of $31,000 when yoii sign the Agreement

Financing

We do not offer any direct or indirect financing if you are purchasing your first YoiMg Rembrandts firanchise. We do not guar^tee any of your purchases, leases, contracts or other obligations.

Franchisee Revenue and Profit

The FTC's Franchise: Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonaMe basis for the information, and if the information is; included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at particular location or under particular circumstances.