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We extract fees, Item 19 financials, franchisee contacts, SBA default rates, litigation, and outlet data from every FDD — so you can compare brands in minutes, not months. Used by multi-unit operators, consultants, and franchise development teams.

Challenge Island

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.

170locations
$58K–$74K
Since 2016
ServicesMarietta, GAwww.challenge-island.comDisclaimer

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Franchise Costs

Franchise Fee
$49,900
Initial Investment
$58,465 – $74,050
Royalty Rate
7.00%
Brand Fund
2.00%
Fixed Monthly Fees
$250 – $250

7% royalty + 2% ad fund + $250/mo technology fee

Financial Performance


Item 19 Financial Performance

Average Gross Revenue
$71,104
Median Gross Revenue
$46,078
Top Quartile Revenue
$169,522
Bottom Quartile Revenue
$14,397

Data Based On: Data for 60 Part-Time and Full-Time franchisees (50 Full-Time franchisees covering 74 territories and 10 Part-Time franchisees covering 31 territories) that met reporting requirements for calendar year 2025.

* The average_gross_revenue ($71,104) and median_gross_revenue ($46,078) are taken directly from Table 7: 'Average Gross Revenue Of All Part-Time And Full-Time Franchisees For 2025', which represents 60 franchisees. The revenue_top_quartile ($169,522) is the 'Average' from the 'Top 25%' category of 15 franchisees in Table 5: 'Average Gross Revenues Of All Part-Time And Full-Time Franchisees Based On Percentage Category For 2025'. The revenue_bottom_quartile ($14,397) is the 'Average' from the 'Bottom 25%' category of 15 franchisees in the same Table 5. A weighted average calculation using the segmented data from Table 5 (15*$169,522 + 30*$50,250 + 15*$14,397) / (15+30+15) results in $71,104.75, which is consistent with the $71,104 average stated in Table 7. No data for gross profit, net income, net profit, or EBITDA was provided, nor any expense information to estimate profit ranges.

Extracted Item 19 Section

Avg. Revenue: $71,104

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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
FranchiseInvestmentFeeRoyaltyLocations
Challenge Island
Current
$58K – $74K$50K7.0%170
Mathnasium$127K – $166K$49K10.0%1,043
MATHNASIUM LEARNING CENTERS; MATHNASIUM CENTERS,$113K – $150K$49K10.0%968
SYLVAN LEARNING, SYLVAN LEARNING CENTER, SYLVAN$118K – $288K$47K11.0%433
CLUB Z!$41K – $57K$27K6.0%319
SOCCER SHOTS$43K – $54K$37K7.0%313
Children's Education & Enrichment Average
41 franchises
$202K – $382K$43K7.7%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 41 Children's Education & Enrichment franchises by location count.

Locations & Growth


Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2025)

Outlets by state across the United States

Top States
1TX
20
2FL
17
3GA
14
4WA
12
5CA
10
6NY
9
7CO
8
8OH
8
9NM
6
10PR
6
11AZ
6
12PA
5
13MI
5
14HA
5
15MD
4

+17 more states

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SBA Loan History


Historical SBA 7(a) loan data for Challenge Island franchisees (20192024)

Total Loans
6
Average Loan
$85,000
Total Volume
$0.5M
Default Rate
16.7%

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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Franchisee Contacts

72 franchisee contacts on file from official FDD filings.

72 Contacts Available

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Due Diligence


Litigation (Item 3)

Franchisee Cases2

One case involved allegations of violations of the California Franchise Investment Law, fraud, negligent misrepresentation, and unfair business practices, resulting in a settlement. The other case was a settlement order related to allegations that the predecessor company sold franchises while not properly registered and engaged in other violations of the Virginia Retail Franchising Act.

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
0
Non-Renewals
0
Reacquired
0
Ceased Ops
0
Transfers
0
Sold to Franchisees
0
Projected New
5

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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.