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- 2022 Franchise 500 Rank
#409 Ranked #151 last year
- Initial investment
$50K - $69K
- Units as of 2022
186 78.8% over 3 years
Here’s what you need to know if you’re interested in opening a Challenge Island franchise.
Challenge Island is an international educational enrichment program for children. Challenge Island's Science, Technology, Engineering, Arts, and Math (STEAM) program equips students with creative skills, critical thinking, and dialogue. Challenge Island hopes that the children will apply these skills to become positive figures in society as they grow up.
Award-winning author, educator, and parenting expert Sharon Estroff founded Challenge Island in 2003. The company started franchising in 2012 and currently has over 110 franchise units globally.
Why You May Want to Start a Challenge Island Franchise
For a visionary and passionate franchisee who loves working with children, the Challenge Island franchise is an excellent opportunity to start a fulfilling career. Challenge Island will train you in their top-rated curriculum that is trusted by parents and educators. They will also offer support throughout your franchising journey, showing you how to make the best of a tested and popular business model.
As a franchisee, you will make a difference in children's lives through fun and educational activities. You will be part of a renowned educational program that offers a proven curriculum and introduces students to a new academic world. Through art and imagination, you will teach your students how to contribute to societal growth.
What Might Make a Challenge Island Franchise a Good Choice?
The Challenge Island franchise network is the number one expert program in the STEAM sector, with various business streams. These include:
In-school field trips
Educational summer camps
Family activities and night outs
Virtual learning programs
Corporate team building
To franchise a Challenge Island location, be prepared to invest financially. Franchisees will need to meet a company set liquid capital and net worth. You will need to pay a franchise fee along with an investment range depending upon site location, employee wages, etc. Veterans are offered a discount on the company franchise fee.
Challenge Island offers full support, including on-the-job and classroom training. They will help you market your franchise through regional advertising, website development, email marketing, and social media.
How to Start a Challenge Island Franchise
The initial inquiry may garner a franchise representative contacting you to discuss the franchise opportunity further. As you move through the franchise process, you may have the chance to talk with other Challenge Island franchisees. Current franchisees may give you advice and insight into operating a Challenge Island franchise.
As you make your decision regarding whether to open a Challenge Island franchise, make sure you take time to explore the opportunity. Research the brand and your local area to see if a franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
If you are chosen to franchise with Challenge Island, you will be expected to attend a one-day classroom training and tour the company's headquarters in Marietta, Georgia. You may receive on the job training at a franchised Challenge Island to familiarize yourself with how you should operate the business. As you near the opening of your location, Challenge Island will continue to support you as you prepare to teach and inspire the next generation of children.
About Challenge Island
- Franchising Since
- 2012 (10 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees worldwide.
- # of Units
- 186 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Challenge Island franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
- $40,410 - $44,900
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $50,185 - $68,925
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 10% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Challenge Island has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- Classroom Training
- 24 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in franchise ownership like Challenge Island? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Challenge Island landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Challenge Island ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse more franchises that are similar to Challenge Island.
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