Challenge Island franchise
A Challenge Island franchisee offers children's STEAM programs built around creative problem-solving activities. At the end of 2025 there were 177 Challenge Island locations in the US, 170 franchised and 7 company-owned.
- Cost to open
- $58K–$74K
- Franchise fee
- $49,900
- Royalty
- 7% + minimum
- Locations, 2025
- 177+41 in 3 yrs
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Company snapshot
- SBA loans
- On the SBA Franchise Directory
From Challenge Island Global, LLC’s 2026 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
How much a Challenge Island franchise costs
Opening one franchise costs an estimated $58,465 to $74,050. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: Challenge Island Global, LLC, 2026 filing, page 16
Challenge Island franchise fee
The franchise fee is $49,900. You pay it when you sign the franchise agreement.
Source: Challenge Island Global, LLC, 2026 filing, page 10
Royalty and ongoing fees
| Royalty | 7% of gross sales, subject to a minimum monthly royalty. |
|---|
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Challenge Island Global, LLC, 2026 filing, page 10
Sales and earnings
Shares figures Challenge Island publishes sales or earnings figures for its locations: 2025 franchise results, with full-time and other operating groups distinguished. The full tables, with notes on which locations are counted, are in its filing.
Source: Challenge Island Global, LLC, 2026 filing, page 40
Locations opened and closed
| Year | Franchised | Company-owned | Closed |
|---|---|---|---|
| 2023 | 143 (+14) | 7 | 1 |
| 2024 | 161 (+18) | 7 | 4 |
| 2025 | 170 (+9) | 7 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
Challenge Island passes all five tests on our list of the best franchises to own and ranks number 30.
Source: Challenge Island Global, LLC, 2026 filing, page 44
How Challenge Island compares
Of the 21 education franchises on this site, Challenge Island is the 2nd cheapest to open and the 6th largest by number of locations.
| Measure | Challenge Island | Typical education |
|---|---|---|
| Cost to open, low end | $58K | $127K |
| Royalty | 7% | 7.5% |
| Closed or left per year | 1.2% | 1.4% |
| Change in franchised locations, 3 yrs | +31.8% | +33.5% |
| Shares earnings figures | Yes | 18 of 21 |
Typical is the median across the 21 brands in education franchises.
