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.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
7% royalty (or min $400-500/mo) + 2% ad fund (or min $100/mo) + $500/qtr local marketing + potential $250/mo technology fee
Franchise Stats
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 to Other Children's Education & Enrichment Franchises
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 Range | Franchise 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
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a Challenge Island franchise?
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.
How many Challenge Island franchise locations are there?
As of the 2025 FDD, Challenge Island has 190 franchise locations. The company has been franchising since 2016.
Can you get an SBA loan for a Challenge Island franchise?
Yes, SBA loans are available for Challenge Island franchises. Historical data shows 6 SBA 7(a) loans have been approved for Challenge Island franchisees, with an average loan amount of $85,000. The historical default rate is 16.7%.
Is Challenge Island a good franchise to buy?
Challenge Island shows several positive indicators: established brand with 190+ locations. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in Challenge Island?
Talk to a franchise advisor to get personalized guidance and learn if Challenge Island is the right fit for you.
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