Challenge Island Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Challenge Island is a kids' education franchise running STEAM enrichment programs, camps, and parties built on themed, team-based challenges. Franchisees run a mostly mobile program delivering classes at schools and venues, hiring and scheduling instructors.
FranchiseVerdict summary · 2026
A Challenge Island franchise requires a total initial investment of $58K – $74K, including a $50K franchise fee and an ongoing 7.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $58K – $74K
- 18th pct Education
- Avg gross sales
- N/A
- Royalty
- 7.0%
- 18th pct Education
- Units
- 197
- 71st pct Education
- SBA charge-off
- N/A
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $58K – $74K including a $50K franchise fee, 7.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better).
- GROWTHSystem growing at 22.6% CAGR over 3 years with 197 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Challenge Island Global, LLC
- Predecessor
- CI Franchise Company, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Sharon D. Estroff
- Incorporated in
- GA
- HQ
- 4590 LaSalle Ct., Marietta, Georgia 30062
- Auditor
- Muhammad Zubairy, CPA PC
- Audited financials
- Franchisor revenue
- $1.1M
- vs $917K prior year
Overview
About
- CEO
- Sharon D. Estroff
- Headquarters
- GA
- Founded
- 2015
- FDD year
- 2025
- States available
- 30
Can you afford it, and what does the money buy?
Entry cost runs 90% below the typical education franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $4K | $10K |
| Equipment, build-out, other | $5K | $14K |
| Total initial investment | $58K | $74K |
Source: Challenge Island 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $58K – $74K
- Top 40% of category vs category
- Liquid capital req'd
- $4K – $10K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 7.0%
- formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $7K |
| Renewal fee | $5K |
| Inventory (initial) | $500 – $1K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Challenge Island did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Challenge Island unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
143%
Above the 30–60% band. Verify revenue is per-unit average
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% — below the Education average of 10.6%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System expanding at 22.6% CAGR over 3 years across 197 units — operators are staying and new ones are joining.
Multi-unit rate
Only 1% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Education averages
How Challenge Island Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 197
- Opened
- 20
- Last reporting year
- Closed
- 0
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.6%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (3-yr)
- +22.6%
- Net unit change over 3 years
- 3-yr CAGR
- +22.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 29 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 5 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 5
- Loan volume
- $455K
- Median loan
- $100K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (5 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Challenge Island presents elevated risk due to litigation history, missing financial disclosure (Item 19), slow unit growth, and unclear franchisor financial stability, making ROI assessment impossible.
Litigation (Item 3)
1) Predecessor CI Franchise Co. paid $60,000 penalty for selling franchises in Virginia while not properly registered (settled 2016). 2) Beckloff v. Challenge Island Global LLC (2018-2019): franchisee sued for California Franchise Investment Law violations, fraud, misrepresentation; settled February 2019 for $145,000.
Largest disclosed settlement: $145,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Muhammad Zubairy, CPA PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 75 / 100 verdict
- 01MINORNo average revenue or net income disclosure (Item 19) — impossible to assess actual franchisee profitability
- 02HIGHTwo litigation settlements totaling $205,000 (2016 Virginia unregistered franchise sales; 2019 California fraud/misrepresentation) indicate regulatory and legal compliance issues
- 03MINORModest unit growth of 9.8% YoY with only 197 locations suggests slower-than-typical franchise expansion; no growth acceleration visible
- 04MINORHigh franchise fee ($49,900) combined with 7% royalty minimum creates significant fixed cost burden without transparent revenue benchmarks
- 05HIGHGoing Concern flagged as 'False' — unclear if this means concerns exist or notation is missing; requires clarification on franchisor financial health
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Marietta, Georgia |
| Jury trial waiver | Yes |
| Governing law | GA |
| Litigation count | 2 |
View Item 3 litigation summary
1) Predecessor CI Franchise Co. paid $60,000 penalty for selling franchises in Virginia while not properly registered (settled 2016). 2) Beckloff v. Challenge Island Global LLC (2018-2019): franchisee sued for California Franchise Investment Law violations, fraud, misrepresentation; settled February 2019 for $145,000.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 0 hrs
- Training location
- Atlanta, Georgia metropolitan area
- Ongoing training
- Required
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- Franchise Management Tool (FMT)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Franchise Management Tool (FMT)
Item 20 · call current owners
Franchisee Contacts
84 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Challenge Island · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Challenge Island franchise?
The total investment to open a Challenge Island franchise ranges from $58K – $74K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Challenge Island franchise owners earn?
Challenge Island does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Challenge Island FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Challenge Island FDD and qualifies whose outlets they describe.
What is Challenge Island's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Challenge Island (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Challenge Island franchise locations are there?
As of their most recent FDD filing, Challenge Island has 197 total units in the United States, including 190 franchised units and 7 company-owned units. 20 new units were opened in the latest reporting year.
Is Challenge Island a good franchise to buy?
FranchiseVerdict rates Challenge Island as a A-grade franchise with a verdict score of 75 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Challenge Island, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.