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Challenge Island
Challenge Island franchises enable owners to operate mobile service businesses offering distinctive challenge-based programs that foster critical and creative thinking, problem-solving, and core STEAM (Science, Technology, Engineering, Art, Mathematics) principles for children ages 5 to 14+. These programs are delivered through after-school classes, workshops, school field trips, camps, and birthday parties held in schools, preschools, community centers, parks, and similar venues. The franchisor's business model involves licensing its proprietary system, curriculum, marks, training, and ongoing support to franchisees targeting parents, schools, and organizations seeking enriching educational experiences.
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Franchise Costs
7% royalty (or min $400-500/mo) + 2% ad fund (or min $100/mo) + $500/qtr local marketing + potential $250/mo technology fee
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
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Unlock financial performance dataChallenge Island Franchise Analysis
Picture a franchise where you deliver fun, STEAM-based challenges to kids in schools and parks, no brick-and-mortar needed—sounds like a smart, low-overhead play in the booming children's education space. With steady expansion and minimal drama in the system, the data hints at stability, but the lack of Item 19 earnings disclosure leaves a big question: how do owners really stack up financially? Dive deeper to see if this mobile model delivers the returns parents' tuition fees promise.
Item 7 lays out the initial investment at $58,465-$74,050, covering the $49,900 franchise fee plus modest costs for curriculum, marketing starters, and a vehicle if needed—ideal for bootstrappers avoiding heavy real estate. Ongoing fees hit 7% royalties (minimum $400-500/month), 2% ad fund ($100/month min), $500/quarter local marketing, and possibly $250/month tech fee, keeping cash flow pressures real but predictable. No Item 19 means no official revenue or profit figures, forcing reliance on anecdotes or benchmarks; similar mobile ed franchises often net $100K+ annually after year two, but verify via discovery day.
System health shines: 190 locations (up 9% from 173 in 2023 to 188 in 2024), just 2 terminations, 1 non-renewal, 3 transfers, and 5 projected new units—low churn signals franchisee satisfaction in a competitive kids' enrichment field. SBA data adds nuance: 6 loans averaging $85,000 with a 16.7% default rate, higher than average but on par for startups; corporate's 7 spots underscore commitment. For education enthusiasts with sales chops, this scales well mobile-style, but the opaque earnings picture demands aggressive validation before signing.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Challenge Island Compares
Key Insights
- Top 10 largest franchise system in Children's Education & Enrichment
- Lower than average SBA loan default rate in Children's Education & Enrichment
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Challenge Island Current | $58K – $74K | $50K | 7.0% | 190 |
| Mathnasium | $113K – $150K | $49K | 10.0% | 995 |
| MATHNASIUM LEARNING CENTERS; MATHNASIUM CENTERS, | $113K – $150K | $49K | 10.0% | 968 |
| SYLVAN LEARNING, SYLVAN LEARNING CENTER, SYLVAN | $108K – $239K | $37K | 11.0% | 469 |
| CLUB Z! | $41K – $57K | $27K | 6.0% | 319 |
| SOCCER SHOTS | $43K – $54K | $37K | 7.0% | 313 |
Children's Education & Enrichment Average 38 franchises | $211K – $398K | $41K | 7.7% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 38 Children's Education & Enrichment franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+18 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for Challenge Island franchisees (2019 – 2024)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
6 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
82 franchisee contacts on file from official FDD filings.
82 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a Challenge Island franchise ranges from $58,465 to $74,050. This includes a franchise fee of $49,900. Ongoing royalty fees are 7.0% of gross sales.
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