Challenge Island
Education & Child Enrichment · STEM & Enrichment Programs
- Active units
- 175
- Royalty
- 7.0%
Franchised, year-end 2023
of weekly Net Sales
About Challenge Island
Challenge Island HQ in Marietta, GA is the home of the world's #1 STEM/STEAM education program. They offer a wide range of products and services designed to inspire and engage children in the areas of science, technology, engineering, art, and math. Whether it's award-winning onsite field trips, camps, Girl Scout workshops, or after-school classes, Challenge Island provides a fun and educational experience for students of all ages. Their programs are built on the principles of project-based learning, promoting higher-level thinking skills such as critical thinking and creativity. Through collaborative, inquiry-based learning, students are encouraged to tackle challenges using only their boundless imaginations and the materials provided. Challenge Island also offers birthday parties and family engagement programs, turning celebrations into STEAM adventures. They even have franchise opportunities available for those who are interested in bringing the magic of Challenge Island to their communities. With a focus on social-emotional learning and resilience, Challenge Island aims to develop well-rounded individuals who excel in both academics and life. So why wait? Join the world's #1 STEAM education program and let the adventure begin!.
Key terms
- Franchise fee
$50k
- New franchisee signing multiple Franchise Agreements
Second and each additional unit signed simultaneously: initial franchise fee reduced to $34,900
- Existing franchisee signing additional Franchise Agreements
Second and each additional Franchise Agreement: initial franchise fee reduced to $39,900
- Educators’ Discount
10% off initial franchise fee (to $45,000) for educators purchasing a franchise
- Brand fund
2.0% of Net Sales
- Veteran discount
10.0% off franchise fee — 10% discount to first-time purchasers for first franchise (to $45,000); veteran must own at least 50% and have an honorable discharge
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2024, 2025, 2026.
Growth
- Total locations170
Franchised units open at year-end
- New openings9
Gross new units opened during the calendar year
- 1-year unit growth rate5.6%
Net unit growth versus prior year
- 3-year unit CAGR9.0%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio9.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$66k
Midpoint of estimated initial investment range
↓ Lower is better - Time to open1 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate7.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Location footprint
Showing 59 of 61 mapped locations
Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.