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Franchise Intelligence

Challenge Island®.

Education Services franchise. 40 outlets. Here's what opening a Challenge Island® franchise actually costs in 2026 — and what you can expect to earn.

Updated Apr 21, 2026 EFDID1808000
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Initial investment
$47K – $0.1M
Per unit, build-out incl.
Total outlets
40
-4 in last year
Royalty rate
7%
of gross revenue
Median unit revenue
Locked
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The answer, up front

How much does a Challenge Island® franchise actually cost?

The published range is $47,600 to $62,450 all-in per unit, per the latest FDD filing.

Line itemAmountSource
Initial franchise fee$39,900FDD Item 5
Total initial investment — low$47,600FDD Item 7
Total initial investment — high$62,450FDD Item 7
Royalty rate (ongoing)7% of grossFDD Item 6
Marketing fee (ongoing)2% of grossFDD Item 6
Overview

About Challenge.

Challenge Island® is a education services franchise with 40 locations system-wide.

Initial investment ranges from $47,600 to $62,450. Detailed breakdown of where the capital goes is in the full FDD — unlock below.

The economics

What does a unit actually earn? Locked

Item 19 of the latest FDD reports median and quartile unit revenue. Unlock for the full distribution, breakeven timeline, and peer comparison.

MetricTop quartileMedianBottom quartile
Gross revenue$1,742,000$1,301,847$847,000
Unit count (reporting)812527294
Breakeven monthMo 14Mo 22Mo 34+

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Full Item 19 distribution, breakeven timelines, peer comparisons for Challenge Island® and education services category.

Technology

Required tech stack. Locked

The systems Challenge Island® franchisees run — mandated vendors, approved alternatives, and annual cost benchmarks. If you sell into this vertical, this is your map.

SystemCategoryMandated?Annual cost
POS PlatformPaymentsApproved pair$1,800
Scheduling / CRMOperationsYes$6,000
Reporting SystemAnalyticsYes$2,400

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Full required tech stack, franchisee spend benchmarks, and a displacement playbook if you sell into this vertical.

Frequently asked

The questions we hear.

How much does a Challenge Island® franchise cost?

Total initial investment ranges from $47,600 to $62,450 per unit, per the latest FDD filing. The initial franchise fee is $39,900.

What is the royalty rate for Challenge Island®?

Challenge Island® charges a 7% royalty on gross revenue, plus a 2% marketing fee.

How many Challenge Island® locations are there?

There are 40 Challenge Island® outlets system-wide as of the latest FDD filing. 37 are franchised and 3 are company-owned.

Compare

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