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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 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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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 | $127K – $166K | $49K | 10.0% | 1,043 |
| MATHNASIUM LEARNING CENTERS; MATHNASIUM CENTERS, | $113K – $150K | $49K | 10.0% | 968 |
| SYLVAN LEARNING, SYLVAN LEARNING CENTER, SYLVAN | $118K – $288K | $47K | 11.0% | 433 |
| CLUB Z! | $41K – $57K | $27K | 6.0% | 319 |
| SOCCER SHOTS | $43K – $54K | $37K | 7.0% | 313 |
Children's Education & Enrichment Average 41 franchises | $202K – $382K | $43K | 7.7% | – |
* 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
+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, 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)
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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