Challenge Island Franchise FDD, Profits & Costs (2025)
Challenge Island is a leading franchise in the realm of children’s education, focusing on the innovative fields of STEAM (Science, Technology, Engineering, Art, and Math). Founded by Sharon Duke Estroff, an award-winning educator and author, the franchise has carved a niche for itself by offering a unique educational experience that combines learning with imaginative play and creativity.
The program started from its humble beginnings when Estroff created Challenge Island for her second-grade students at the Epstein School of Atlanta in 2000.
Recognizing the potential and the demand for such a program beyond her classroom, Estroff launched Challenge Island as a business in 2002 in Marietta, GA. The success of the program led to the start of its franchising in 2013, allowing it to expand its reach and impact on children’s education globally.
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Initial Investment
How much does it cost to start a Challenge Island franchise? It costs on average between $58,000 – $74,000 to start a Challenge Island franchised facility.
This includes costs for materials, program supplies, marketing resources, and initial operational expenses. The exact amount varies based on factors such as the size of the territory, the location, and whether the franchisee opts to lease or purchase office space.
| Type of Expenditure | Amount (Low – High) |
|---|---|
| Initial Franchise Fee | $49,900 |
| Equipment | $0 – $1,500 |
| Product/Supplies | $500 – $1,000 |
| Insurance Premium | $1,040 – $2,125 |
| Office & Printing Supplies | $200 – $800 |
| Professional Fees | $1,000 – $5,000 |
| Training Expenses | $800 – $1,250 |
| Marketing Materials | $0 – $500 |
| Business License | $50 – $500 |
| Additional Funds (3 months) | $4,000 – $10,000 |
| Initial Marketing Plan | $500 – $1,000 |
| Franchise Management Tool (FMT) | $475 |
| Total | $58,465 – $74,050 |
Average Revenue (AUV)
How much revenue can you make with a Challenge Island franchise? A Challenge Island franchised location makes on average $38,000 in revenue (AUV) per year.
This compares to $205,000 yearly revenue for similar tutoring franchises. Below are a few Challenge Island competitors as a comparison:
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Challenge Island Franchise Disclosure Document
Frequently Asked Questions
How many Challenge Island locations are there?
As of the latest data, Challenge Island operates 239 franchise locations worldwide. The company does not own any corporate locations; all are franchise-owned.
What is the total investment required to open a Challenge Island franchise?
The total investment required to open a Challenge Island franchise ranges from $58,000 to $74,000.
What are the ongoing fees for a Challenge Island franchise?
The ongoing fees for a Challenge Island franchise include a royalty fee of 7% of gross revenue, which covers the use of the brand, curriculum, and ongoing support provided by the franchisor.
Additionally, franchisees contribute 2% of gross revenue toward a national marketing fund, which supports advertising and promotional efforts to enhance brand visibility and drive customer engagement.
What are the financial requirements to become a Challenge Island franchisee?
To become a Challenge Island franchisee, candidates must meet specific financial requirements, including a minimum net worth of $75,000 and liquid capital of at least $30,000. These requirements ensure that franchisees have the financial stability and resources needed to establish and operate their franchise successfully.
How much can a Challenge Island franchise owner expect to earn?
The average gross sales for a Challenge Island franchise are approximately $0.04 million per location. Assuming a 15% operating profit margin, $0.04 million yearly revenue can result in $6,000 EBITDA annually.
Who owns Challenge Island?
Challenge Island franchise is owned by Challenge Island Global, LLC. The company was founded by Sharon Duke Estroff, who continues to lead the brand’s innovative approach to education and enrichment through its unique, STEAM-focused programs.
Disclaimer
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