Quick Verdict · who it fits
Challenge Island fits first-time franchise buyers looking for a mid-scale child services concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$58K - $74K
Franchise fee (Item 5)
$50K
Royalty (Item 6)
7% + 2% ad
System size (Item 20)
170 +9
Agreement term
10 yrs
Years in business
11+ yrs
Training (Item 11)
3 days
Company-owned units
7
Item 3 litigation
2 suits
Model Challenge Island's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
•No exclusive territory•Owner-operator required✓No bankruptcy disclosed•2 Item 3 cases
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
Drag to your projected annual sales. Royalty 7% + ad fund 2% on gross sales.
PROJECTED ANNUAL SALES$500,000
$100k$2M
Royalty (7%)
—
Ad fund (2%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
Free AI summary — the first read on the filing.
177
Total units open
9
Units opened last year
0
Units closed last year
9
Net unit growth
What our analysis flagged across the 2026 filing.
4
Risks to review
3
Strengths identified
5
Questions to ask
How Challenge Island ranks against 137 Child Services & Education peers we've analyzed.
Initial investment
21st pct · of 137 peers
Franchise fee
62nd pct · of 137 peers
System size
83rd pct · of 137 peers
Child Services & Education industry averages
Avg investment
$373K - $1.1M
Avg franchise fee
$46K
Avg system size
96
Franchises analyzed
137
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| Challenge Island | Disclosed | $50K | $58K - $74K | 7% | 170 |
| KidzartSimilar price | Disclosed | $54K | $58K - $72K | 8% | 11 |
| Kumon North AmericaBiggest system | None | $2K | $102K - $234K | — | 1,705 |
| Uatp ManagementTop-rated in category | Disclosed | $100K | $2.9M - $5.4M | 7% | 202 |
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Free explainers to go deeper before you sign.
Challenge Island requires a $49,900 initial franchise fee and a total initial investment range of $58,465–$74,050, per the most recent FDD on file.
Challenge Island is franchised by Challenge Island Global, LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the franchisor's corporate history, parents, and predecessors.
Yes. Challenge Island discloses Item 19 financial performance representations in its FDD. See the financials sub-page for the disclosed figures.
Franchisees pay a royalty of 7% and an advertising fund contribution of 2% on gross sales as defined in Item 6 of the FDD.
As of their 2026 FDD, Challenge Island has 170 total locations, with 9 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
Yes. Challenge Island's most recent FDD documents approximately 3 days of initial training, typically split between classroom and on-site components. See Item 11 of the FDD for the full training and support schedule.
No. Challenge Island does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.
Per the FDD, Challenge Island discloses an initial agreement term of 10 years. Review Items 10 and 17 for the full renewal and termination provisions.
This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt