Franchise Facts Report → brands → Challenge Island
Challenge Island franchise — is it worth it?
Medium risk Growing network Item 19 disclosed
Challenge Island offers a child services and education franchise opportunity with a relatively low initial investment.
Everything below is free, read straight off Challenge Island's registered filing, with where the numbers land against child services & education peers. Weighing Challenge Island against other options? Get a free shortlist of franchises that fit your budget.
Figures above are as disclosed in Challenge Island's most recent FDD (registered 2026). Source: Wisconsin Dept. of Financial Institutions — Franchise Registration · filing 641373 — check it yourself. See every other Wisconsin-registered franchise.
Considering Challenge Island? See what else fits your budget
Tell us your budget and the industries you're open to. We'll match you with 5–10 franchises whose own FDDs fit — ranked by earnings disclosure, growth and closure rate — and email you the list. Challenge Island will be on it if it fits.
How much does a Challenge Island franchise make?
Challenge Island is one of the franchisors that answers this on the record: its most recent FDD makes an Item 19 financial performance representation — actual unit earnings figures, disclosed by the franchisor itself. The headline figure is $169,522 in average unit revenue — read it alongside what Item 19 says about which units it covers (often only mature or top-performing locations). See every child services & education brand that discloses earnings in the Child care & education franchises with disclosed Item 19 earnings ranking.
Challenge Island franchise profit vs. revenue
Revenue is not profit. An Item 19 almost always reports sales — what a location takes in — not what an owner keeps. Out of that number come Challenge Island's 7% royalty, the ad fund, rent, payroll, supplies and debt service. No FDD tells you a Challenge Island franchise's profit, because profit depends on your site, your rent and how you run it — so treat any "Challenge Island franchise profit" figure quoted elsewhere as someone's estimate, not a disclosure. On $169,522 of revenue, a 7% royalty alone is about $11,867 a year before any other cost.
Challenge Island lawsuits & legal history (FDD Item 3)
Challenge Island's most recently filed Franchise Disclosure Document (2026) does disclose legal proceedings in Item 3 . Item 3 is the item where a franchisor must put its material legal history on the record. Two things it is not: it covers the franchisor and its predecessors, parents and affiliates, so a disclosed case is not necessarily a suit against Challenge Island itself; and a disclosure is a fact, not a finding of wrongdoing — most entries are contract disputes with former franchisees, which every large system accumulates. Item 3 of the source FDD describes each case.
Challenge Island closures & failure rate
Before you sign, Challenge Island will hand you a list of current owners to call as references — and they choose who's on that list. It won't include the owners who quit, got bought out, or were forced out last year. The FDD does report that number, even though the reference list leaves those people off. Below is what Challenge Island's most recent filing shows, and whether it's normal for a child services & education of this kind.
The closest thing an FDD has to a failure rate is Item 20 — outlet openings, closures, terminations and non-renewals, reported by the franchisor. Challenge Island's latest tables show a growing franchised network. Its franchised-outlet closure rate — closures, terminations and non-renewals against outlets — is 0%, against a child services & education median of 2.5% — at or better than the category. Net franchised outlets moved +9 to 170 in the latest reported year.
Who owns Challenge Island?
Challenge Island's franchise is offered by Challenge Island Global, LLC — the franchisor named on the cover of its most recently filed Franchise Disclosure Document (2026), and the entity a franchisee actually signs with. That name comes straight off the filing at WI DFI; it identifies the franchisor, not necessarily the ultimate parent company behind it.
Child services & education franchises at a similar investment level
Anyone weighing Challenge Island is really weighing it against the other brands their money could go into. These are the closest by total initial investment (FDD Item 7), each with its own FDD-based page.
Challenge Island franchise — frequently asked
Who owns Challenge Island — who is the franchisor?
Challenge Island's most recently filed FDD (2026) names Challenge Island Global, LLC as the franchisor — the entity you would actually sign the franchise agreement with, as stated on the disclosure document itself. A registry filing names the franchisor, not necessarily its ultimate parent company.
How much does a Challenge Island franchise cost?
Challenge Island's most recently filed FDD (Item 7) puts the total estimated initial investment at $58,465 – $74,050, with an initial franchise fee of $49,900 and a 7% royalty. That price is the franchisor's own estimate of what it takes to open, not a quote. Against child services & education peers it sits in the top quartile (median $134,630).
How much profit does a Challenge Island franchise make?
Challenge Island discloses unit earnings in Item 19, but that figure is revenue — sales — not profit. Royalties (7% of gross for Challenge Island), the ad fund, rent, payroll and supplies all come out of it, and no FDD discloses what an owner nets. Any Challenge Island franchise profit number quoted elsewhere is an estimate. The headline figure Challenge Island discloses is $169,522 in average unit revenue.
Does Challenge Island disclose financial performance (Item 19)?
Yes — Challenge Island reports unit-level earnings in Item 19. The headline figure is $169,522 in average unit revenue, as the franchisor states it.
Are there lawsuits against Challenge Island?
Challenge Island's most recently filed FDD (2026) discloses legal proceedings in Item 3. Item 3 covers the franchisor, its predecessors, parents and affiliates — so a disclosed case is not necessarily a suit against Challenge Island itself, and a disclosure is not a finding of wrongdoing.
Is Challenge Island a good franchise to buy?
Nobody can answer that from Challenge Island's numbers alone — it comes down to how its investment, earnings, litigation and franchisee churn stack up against child services & education peers and against your own budget. Our read on this filing is medium risk. Every figure behind that read is on this page for free. If you're comparing options, the free shortlist on this page matches you with 5–10 franchises that fit your budget and industry.
Get a free email when something changes on Challenge Island or child services & education: a new FDD registration, a new lawsuit, an outlet count that shifts, or Item 19 earnings going from undisclosed to disclosed. Pulled straight from the same state registries this page is built on.