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.
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
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 | 8.0% | 328 |
| SOCCER SHOTS | $43K – $54K | $37K | 7.0% | 306 |
Children's Education & Enrichment Average 39 franchises | $205K – $385K | $41K | 7.7% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 39 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
SBA 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.
Franchisee Contacts
82 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
82 Contacts Available
Unlock all Challenge Island franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently 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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