Digital Sites. You may neither establish nor permit any other party to establish a Digital Site relating in any manner whatsoever to your Franchised Business or referring to the Proprietary Marks unless we have otherwise approved in writing. We will have the right, but not the obligation, to provide one or more references or webpage(s), as we may periodically designate, within our Digital Site. The term “Digital Site” means one or more related documents, designs, pages, or other communications that can be accessed through electronic means, including the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, Twitter, LinkedIn, YouTube, Snapchat, Pinterest, Instagram, TikTok etc.), blogs, vlogs, podcasts, applications to be used on mobile devices (e.g., iOS or Android apps), and other applications, etc. (whether they are now in existence or developed at some point in the future). However, if we give you our prior written consent to have some form of separate Digital Site (which we are not obligated to approve), then each of the following provisions will apply: (1) you may neither establish nor use any Digital Site without our prior written approval; (2) before establishing any Digital Site, you must submit to us, for our prior written approval, a sample of the proposed Digital Site, including its domain name, format, visible content (including, without limitation, proposed screen shots), and non-visible content (including metatags), in the form and manner we may require; (3) you must not use or modify an Digital Site (which is deemed marketing) without our prior written approval; (4) you must comply with the standards and specifications for Digital Sites that we may periodically prescribe in the Brand Manual or otherwise in writing; (5) if we require, you must establish hyperlinks to our Digital Site and other Digital Sites; and (6) we may require period updates to your Digital Site; and (7) we may require you to make us the sole administrator (or co-administrator) of any social networking pages that you maintain or that are maintained on your behalf.
From the filings
Challenge Island - California
Youth servicesChallenge Island – California is a youth-services franchise with 182 total US locations (175 franchised, 7 company-owned) as of the 2024 FDD. The franchisor sets technology standards through Item 11 and requires franchisees to purchase a Franchise Management Tool from an approved supplier. Software vendors should target the franchisor’s standards-setting function and the approved-supplier channel.
For software vendors selling into US franchise brands.
Live signals
Ordinary royalty terms
5% component; full terms unconfirmed
Complete royalty terms are not confirmed for the selected filing.
Recorded percentage components
These are recorded percentage components. Each has its own base and conditions; the chart does not state the total payment or confirm ad-fund completeness.
1recorded components (FY2024)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
Digital Sites. You may neither establish nor permit any other party to establish a Digital Site relating in any manner whatsoever to your Franchised Business or referring to the Proprietary Marks unless we have otherwise approved in writing. We will have the right, but not the obligation, to provide one or more references or webpage(s), as we may periodically designate, within our Digital Site. The term “Digital Site” means one or more related documents, designs, pages, or other communications that can be accessed through electronic means, including the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, Twitter, LinkedIn, YouTube, Snapchat, Pinterest, Instagram, TikTok etc.), blogs, vlogs, podcasts, applications to be used on mobile devices (e.g., iOS or Android apps), and other applications, etc. (whether they are now in existence or developed at some point in the future). However, if we give you our prior written consent to have some form of separate Digital Site (which we are not obligated to approve), then each of the following provisions will apply: (1) you may neither establish nor use any Digital Site without our prior written approval; (2) before establishing any Digital Site, you must submit to us, for our prior written approval, a sample of the proposed Digital Site, including its domain name, format, visible content (including, without limitation, proposed screen shots), and non-visible content (including metatags), in the form and manner we may require; (3) you must not use or modify an Digital Site (which is deemed marketing) without our prior written approval; (4) you must comply with the standards and specifications for Digital Sites that we may periodically prescribe in the Brand Manual or otherwise in writing; (5) if we require, you must establish hyperlinks to our Digital Site and other Digital Sites; and (6) we may require period updates to your Digital Site; and (7) we may require you to make us the sole administrator (or co-administrator) of any social networking pages that you maintain or that are maintained on your behalf.
Digital Sites. You may neither establish nor permit any other party to establish a Digital Site relating in any manner whatsoever to your Franchised Business or referring to the Proprietary Marks unless we have otherwise approved in writing. We will have the right, but not the obligation, to provide one or more references or webpage(s), as we may periodically designate, within our Digital Site. The term “Digital Site” means one or more related documents, designs, pages, or other communications that can be accessed through electronic means, including the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, Twitter, LinkedIn, YouTube, Snapchat, Pinterest, Instagram, TikTok etc.), blogs, vlogs, podcasts, applications to be used on mobile devices (e.g., iOS or Android apps), and other applications, etc. (whether they are now in existence or developed at some point in the future). However, if we give you our prior written consent to have some form of separate Digital Site (which we are not obligated to approve), then each of the following provisions will apply: (1) you may neither establish nor use any Digital Site without our prior written approval; (2) before establishing any Digital Site, you must submit to us, for our prior written approval, a sample of the proposed Digital Site, including its domain name, format, visible content (including, without limitation, proposed screen shots), and non-visible content (including metatags), in the form and manner we may require; (3) you must not use or modify an Digital Site (which is deemed marketing) without our prior written approval; (4) you must comply with the standards and specifications for Digital Sites that we may periodically prescribe in the Brand Manual or otherwise in writing; (5) if we require, you must establish hyperlinks to our Digital Site and other Digital Sites; and (6) we may require period updates to your Digital Site; and (7) we may require you to make us the sole administrator (or co-administrator) of any social networking pages that you maintain or that are maintained on your behalf.
Digital Sites. You may neither establish nor permit any other party to establish a Digital Site relating in any manner whatsoever to your Franchised Business or referring to the Proprietary Marks unless we have otherwise approved in writing. We will have the right, but not the obligation, to provide one or more references or webpage(s), as we may periodically designate, within our Digital Site. The term “Digital Site” means one or more related documents, designs, pages, or other communications that can be accessed through electronic means, including the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, Twitter, LinkedIn, YouTube, Snapchat, Pinterest, Instagram, TikTok etc.), blogs, vlogs, podcasts, applications to be used on mobile devices (e.g., iOS or Android apps), and other applications, etc. (whether they are now in existence or developed at some point in the future). However, if we give you our prior written consent to have some form of separate Digital Site (which we are not obligated to approve), then each of the following provisions will apply: (1) you may neither establish nor use any Digital Site without our prior written approval; (2) before establishing any Digital Site, you must submit to us, for our prior written approval, a sample of the proposed Digital Site, including its domain name, format, visible content (including, without limitation, proposed screen shots), and non-visible content (including metatags), in the form and manner we may require; (3) you must not use or modify an Digital Site (which is deemed marketing) without our prior written approval; (4) you must comply with the standards and specifications for Digital Sites that we may periodically prescribe in the Brand Manual or otherwise in writing; (5) if we require, you must establish hyperlinks to our Digital Site and other Digital Sites; and (6) we may require period updates to your Digital Site; and (7) we may require you to make us the sole administrator (or co-administrator) of any social networking pages that you maintain or that are maintained on your behalf.
Digital Sites. You may neither establish nor permit any other party to establish a Digital Site relating in any manner whatsoever to your Franchised Business or referring to the Proprietary Marks unless we have otherwise approved in writing. We will have the right, but not the obligation, to provide one or more references or webpage(s), as we may periodically designate, within our Digital Site. The term “Digital Site” means one or more related documents, designs, pages, or other communications that can be accessed through electronic means, including the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, Twitter, LinkedIn, YouTube, Snapchat, Pinterest, Instagram, TikTok etc.), blogs, vlogs, podcasts, applications to be used on mobile devices (e.g., iOS or Android apps), and other applications, etc. (whether they are now in existence or developed at some point in the future). However, if we give you our prior written consent to have some form of separate Digital Site (which we are not obligated to approve), then each of the following provisions will apply: (1) you may neither establish nor use any Digital Site without our prior written approval; (2) before establishing any Digital Site, you must submit to us, for our prior written approval, a sample of the proposed Digital Site, including its domain name, format, visible content (including, without limitation, proposed screen shots), and non-visible content (including metatags), in the form and manner we may require; (3) you must not use or modify an Digital Site (which is deemed marketing) without our prior written approval; (4) you must comply with the standards and specifications for Digital Sites that we may periodically prescribe in the Brand Manual or otherwise in writing; (5) if we require, you must establish hyperlinks to our Digital Site and other Digital Sites; and (6) we may require period updates to your Digital Site; and (7) we may require you to make us the sole administrator (or co-administrator) of any social networking pages that you maintain or that are maintained on your behalf.
Digital Sites. You may neither establish nor permit any other party to establish a Digital Site relating in any manner whatsoever to your Franchised Business or referring to the Proprietary Marks unless we have otherwise approved in writing. We will have the right, but not the obligation, to provide one or more references or webpage(s), as we may periodically designate, within our Digital Site. The term “Digital Site” means one or more related documents, designs, pages, or other communications that can be accessed through electronic means, including the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, Twitter, LinkedIn, YouTube, Snapchat, Pinterest, Instagram, TikTok etc.), blogs, vlogs, podcasts, applications to be used on mobile devices (e.g., iOS or Android apps), and other applications, etc. (whether they are now in existence or developed at some point in the future). However, if we give you our prior written consent to have some form of separate Digital Site (which we are not obligated to approve), then each of the following provisions will apply: (1) you may neither establish nor use any Digital Site without our prior written approval; (2) before establishing any Digital Site, you must submit to us, for our prior written approval, a sample of the proposed Digital Site, including its domain name, format, visible content (including, without limitation, proposed screen shots), and non-visible content (including metatags), in the form and manner we may require; (3) you must not use or modify an Digital Site (which is deemed marketing) without our prior written approval; (4) you must comply with the standards and specifications for Digital Sites that we may periodically prescribe in the Brand Manual or otherwise in writing; (5) if we require, you must establish hyperlinks to our Digital Site and other Digital Sites; and (6) we may require period updates to your Digital Site; and (7) we may require you to make us the sole administrator (or co-administrator) of any social networking pages that you maintain or that are maintained on your behalf.
Digital Sites. You may neither establish nor permit any other party to establish a Digital Site relating in any manner whatsoever to your Franchised Business or referring to the Proprietary Marks unless we have otherwise approved in writing. We will have the right, but not the obligation, to provide one or more references or webpage(s), as we may periodically designate, within our Digital Site. The term “Digital Site” means one or more related documents, designs, pages, or other communications that can be accessed through electronic means, including the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, Twitter, LinkedIn, YouTube, Snapchat, Pinterest, Instagram, TikTok etc.), blogs, vlogs, podcasts, applications to be used on mobile devices (e.g., iOS or Android apps), and other applications, etc. (whether they are now in existence or developed at some point in the future). However, if we give you our prior written consent to have some form of separate Digital Site (which we are not obligated to approve), then each of the following provisions will apply: (1) you may neither establish nor use any Digital Site without our prior written approval; (2) before establishing any Digital Site, you must submit to us, for our prior written approval, a sample of the proposed Digital Site, including its domain name, format, visible content (including, without limitation, proposed screen shots), and non-visible content (including metatags), in the form and manner we may require; (3) you must not use or modify an Digital Site (which is deemed marketing) without our prior written approval; (4) you must comply with the standards and specifications for Digital Sites that we may periodically prescribe in the Brand Manual or otherwise in writing; (5) if we require, you must establish hyperlinks to our Digital Site and other Digital Sites; and (6) we may require period updates to your Digital Site; and (7) we may require you to make us the sole administrator (or co-administrator) of any social networking pages that you maintain or that are maintained on your behalf.
Digital Sites. You may neither establish nor permit any other party to establish a Digital Site relating in any manner whatsoever to your Franchised Business or referring to the Proprietary Marks unless we have otherwise approved in writing. We will have the right, but not the obligation, to provide one or more references or webpage(s), as we may periodically designate, within our Digital Site. The term “Digital Site” means one or more related documents, designs, pages, or other communications that can be accessed through electronic means, including the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, Twitter, LinkedIn, YouTube, Snapchat, Pinterest, Instagram, TikTok etc.), blogs, vlogs, podcasts, applications to be used on mobile devices (e.g., iOS or Android apps), and other applications, etc. (whether they are now in existence or developed at some point in the future). However, if we give you our prior written consent to have some form of separate Digital Site (which we are not obligated to approve), then each of the following provisions will apply: (1) you may neither establish nor use any Digital Site without our prior written approval; (2) before establishing any Digital Site, you must submit to us, for our prior written approval, a sample of the proposed Digital Site, including its domain name, format, visible content (including, without limitation, proposed screen shots), and non-visible content (including metatags), in the form and manner we may require; (3) you must not use or modify an Digital Site (which is deemed marketing) without our prior written approval; (4) you must comply with the standards and specifications for Digital Sites that we may periodically prescribe in the Brand Manual or otherwise in writing; (5) if we require, you must establish hyperlinks to our Digital Site and other Digital Sites; and (6) we may require period updates to your Digital Site; and (7) we may require you to make us the sole administrator (or co-administrator) of any social networking pages that you maintain or that are maintained on your behalf.
Franchisor behaviours
What the franchisor requires
24 requirements the franchisor states in this filing, each in its own words; 3 explicit no's; 7 questions the text does not settle, which is not a no.
Accounting
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
12.2.1 You agree to provide us, at your expense, and in a format that we reasonably specify, a complete annual financial statement prepared on a review basis by an independent certified public accountant (as to whom we do not have a reasonable objection) within sixty (60) days after the end of each fiscal year of the…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We (and one of our affiliates) are the only designated supplier for certain items that you must buy for the operation of your Franchised Business, including certain educational materials, books, and other materials.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We have the right to amend the Approved Suppliers from time to time.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
10966.88Item 8
During our fiscal year 2025, we received $10,966.88 in revenue from required purchases or leases by franchisees, which represented 1% of our total revenue of $1,040,288.70.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
90Item 8
We estimate that the purchases we currently require will equal approximately 90-95% of your ongoing operating expenses, depending upon
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
Either you or the proposed new supplier must pay us a charge (which will not exceed the reasonable cost of the inspection and the actual cost of the tests).
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you want to buy any supplies or any other items from an unapproved supplier, you first must submit a written request to us asking for our approval to do so.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
You agree to stop making any use of all signs (including exterior directory signs), anywhere, as well telephone numbers, domain names, websites, e mail addresses, Digital Sites, and any other print and electronic identifiers, whether or not we have authorized them, that you have used while operating the Franchised…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesItem 7
You also must follow the Payment Card Industry Data Security Standards and comply with applicable data protection and privacy laws relating to customer payment card transactions.
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
You agree to participate in those programs and promptly pay the then-current charges of the evaluation
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
We may periodically designate an independent evaluation service to conduct client surveys and/or similar quality-control and evaluation programs.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 8
We have the right to amend the Approved Suppliers from time to time.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Unless we have otherwise approved in writing, you agree to neither establish nor permit any other party to establish a Digital Site relating in any manner whatsoever to the Franchised Business or referring to the Proprietary Marks.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 8
Each quarter, you must also spend, on your own, at least $500 on local marketing.
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
You agree to offer for sale, participate in, and honor for purchases by clients, all gift cards and other incentive or convenience programs that we may periodically institute (including loyalty programs that we or a third party vendor operate, as well as mobile apps, mobile payment, and/or other client affinity…
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
only purchase products, supplies, promotional items and equipment from designated suppliers set forth in the Brand Manual (“Approved Suppliers”);
Must equipment be purchased from designated or approved suppliers?
YesItem 8
only purchase products, supplies, promotional items and equipment from designated suppliers set forth in the Brand Manual (“Approved Suppliers”);
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesFranchise agreement
12.4.2 You agree to maintain, at all times, credit-card relationships with the credit- and debit- card issuers or sponsors, check or credit verification services, financial-center services, merchant service providers, and electronic-fund-transfer systems (together, “Payment Vendors”) that we may periodically…
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 8
All fees due to us or our affiliates (such as royalty fees, advertising contributions, amounts due for your purchases from us or our affiliates, and other amounts due under the Franchise Agreement) must be paid through electronic funds transfer (using the ACH network).
Must the franchisee participate in a gift card program?
YesFranchise agreement
You agree to offer for sale, participate in, and honor for purchases by clients, all gift cards and other incentive or convenience programs that we may periodically institute (including loyalty programs that we or a third party vendor operate, as well as mobile apps, mobile payment, and/or other client affinity…
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
8.3 Staffing. 8.3.1 You agree to maintain a competent, conscientious staff in numbers sufficient to promptly service clients and to comply with staffing, service criteria, and applicable teacher-child ratio legal standards.
Point of sale
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesFranchise agreement
You agree to afford us unimpeded access to your Computer System and Required Software, including all information and data maintained thereon, in the manner, form, and at the times that we request.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
We may require that you and your Operating Owner, Manager and Additional Trained Personnel attend such refresher courses, new product launches, seminars, and other training programs as we may reasonably require periodically.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 8
Operating Principal must attend.
The filing answers no to 3 questions
- Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?Item 8
- Is a minimum grand opening advertising spend required?Item 8
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 8
The vendor opportunity at Challenge Island
Challenge Island – California operates 182 total US locations, of which 175 are franchised and 7 are company-owned. The 2024 FDD reports franchised-outlet growth of 12.9% year over year. Item 19 makes no financial performance representation, so no system-wide or cohort average unit volume is stated in the filing.
For software vendors, the addressable market is the franchisee base plus the franchisor’s own operations. The franchisor’s standards and approved-supplier designations create a centralized procurement path for technology that touches franchise operations.
Who controls software purchasing
The franchisor controls technology standards through the Manuals and Item 11 requirements. Franchisees must install and maintain computer hardware, software, equipment, accessories, and capabilities meeting brand standards. They may be required to pay software license fees for required software. The franchisor also prescribes anti-virus, anti-spyware, data security, and consumer privacy policies.
Item 2 officer names are not listed in the filing excerpt, so no specific executive buyer can be named from the available data. The buying center is the franchisor’s standards-setting function, which designates approved suppliers and required software.
Tech named in the FDD, and what is actually required
Item 11 requires franchisees to purchase the Franchise Management Tool software from an approved supplier and to contract with that supplier for support, updating, and maintenance. The FDD also requires a laptop computer with basic Microsoft Office capabilities. Franchisees must acquire and maintain anti-virus and anti-spyware software and comply with data security and consumer privacy policies set by the franchisor.
The filing’s own words state: “You must also purchase the Franchise Management Tool software from and contract with our Approved Supplier for support, updating and maintenance services for that software.” That is the only software system named as required in the excerpt. The FDD also requires franchisees to enter into software license agreements, terms of use, and maintenance agreements in the form prescribed by approved vendors.
Procurement, renewals, and timing
Item 8 uses an approved-supplier list. Franchisees must purchase products, supplies, promotional items, and equipment from designated Approved Suppliers in the Brand Manual. The franchisor may designate itself or an affiliate as an Approved Supplier. Currently, the franchisor and its affiliates are Approved Suppliers only for certain educational materials, books, marketing materials, and Proprietary Products. The FDD estimates that required purchases from Approved Suppliers will equal approximately 90–95% of the total cost to establish a franchised business.
Franchisees may propose alternative suppliers through a written request process. The franchisor may re-inspect approved suppliers and revoke approval if standards are not met.
Initial terms are 10 years. Renewal requires timely written notice, refurbishment to then-current standards, compliance with the agreement, payment of all financial obligations, execution of the then-current franchise agreement (which may contain materially different terms), payment of a renewal fee, execution of a general release, and compliance with personnel and training requirements. Renewal terms are 10 years.
How to read the Challenge Island FDD
The embedded PDF viewer below contains the brand's 2024 Franchise Disclosure Document. Item 8 covers supplier restrictions and approved suppliers. Item 11 covers technology and training requirements. Item 17 covers renewal, transfer, and termination. Item 19 covers financial performance representations — and in this filing, none are made. Item 20 covers outlet counts.
For a ranked target list of franchise systems that match your software category, talk to FranCloud.
Ordinary royalty terms
Complete royalty terms are not confirmed.
Questions vendors ask
Challenge Island - California, answered from the filing
Read the filing itself
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Operator footprint
Challenge Island - California’s FDD on file does not disclose a franchisee directory.
Related Youth services brands
Primary franchise filings · updated September 2026. Read the original filing for definitions, conditions, and qualifications.