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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 + 2% ad fund + $250/mo technology fee
Financial Performance
Item 19 Financial Performance
Data Based On: Data for 60 franchised units (50 Full-Time, 10 Part-Time) that submitted financial reports during the 2025 calendar year and met reporting requirements.
* Average Gross Revenue for all franchisees ($67,436) and Median Gross Revenue ($45,483) were directly extracted from Table 7. Revenue Top Quartile ($161,053) and Revenue Bottom Quartile ($13,182) were extracted from the 'Top 25%' and 'Bottom 25%' categories in Table 5, respectively. Weighted average calculations for all franchisees based on segmented data in Table 5 ((30 units × $112,424 + 30 units × $22,449) / 60 total units = $67,436.5) and Table 6 ((34 units × $56,124 + 18 units × $81,308 + 3 units × $44,740 + 4 units × $115,889 + 1 unit × $76,670) / 60 total units = $67,436.77) were performed to verify consistency with the explicit average in Table 7.
Extracted Item 19 Section
Avg. Revenue: $67,436
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Unlock financial performance dataHow 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% | 170 |
| 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 – $399K | $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 (2025)
Outlets by state across the United States
+17 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
72 franchisee contacts on file from official FDD filings.
72 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
One case involved allegations of violations of the California Franchise Investment Law, fraud, negligent misrepresentation, and unfair business practices. The other involved allegations of selling franchises while not properly registered and other violations of the Virginia Retail Franchising Act.
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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