Challenge Island Franchise FDD, Costs & Fees (2026)

Challenge Island is an educational franchise that offers STEAM-focused programs through hands-on, creative challenges for children.

KEY FRANCHISE STATS

Franchisees

175

32%

Franchise fee

$49,900

Investment

$58,000 - $74,000

Revenue (AUV)

n.a.

Challenge Island is a leading STEAM (Science, Technology, Engineering, Art, and Math) education franchise that offers a unique, hands-on learning experience for children. Founded in 2002 by Sharon Duke Estroff, a former educator in Atlanta, Georgia, Challenge Island began as a classroom initiative designed to spark creativity and collaboration among students.

Recognizing the growing demand for engaging educational programs, Estroff expanded Challenge Island into an afterschool business, eventually franchising the concept in 2013 to reach a broader audience.

Headquartered in Atlanta, Georgia, Challenge Island has grown rapidly across 36 states and four countries. The franchise is known for its innovative approach to education, where children work together in "STEAM Teams" to tackle imaginative challenges using low-tech supplies.

This emphasis on teamwork, creativity, and problem-solving, combined with the program's commitment to being screen-free, sets Challenge Island apart from its competitors.

Initial investment

The initial investment required for a Challenge Island franchise is $58,000 - $74,000. That is the total cost you would need to finance if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure	Amount
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

Type of Expenditure	Amount
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

Franchise Disclosure Document

Below is Challenge Island's 2024 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.

Number of units

Challenge Island had 182 total units in 2024, of which 175 were franchised-owned and 7 company-owned.

Frequently Asked Questions

Competitors

Below are some of

Challenge Island

key competitors in the

Tutoring

sector.

Franchise

Upgrade

175

New

32%

7.00%

$58,000

$74,000

n.a.

iCode

$200K - $500K

New

175%

8.00%

$298,000

$427,000

$197,000

n.a.

Sylvan Learning Centers

$100K - $200K

474

New

16.00%

$101,000

$227,000

$364,000

n.a.

Code Ninjas

$50K - $100K

239

New

-16%

8.00%

$69,000

$298,000

$221,000

n.a.

Little Medical School

$50K - $100K

New

50%

8.00%

$58,000

$227,000

n.a.

Afficient Academy Learning Center

$25K - $50K

New

22.00%

$47,000

$142,000

n.a.

Best Brains

$25K - $50K

116

New

-1%

14.00%

$29,000

$118,000

n.a.

Training

Challenge Island provides comprehensive training to ensure that franchisees are well-prepared to operate their business successfully. The training is designed to equip franchise owners with the knowledge and skills needed to deliver the unique Challenge Island experience to children in their communities.

Initial Training: Franchisees begin with an immersive initial training program, which typically takes place at Challenge Island’s headquarters in Atlanta, Georgia. This training covers all aspects of running a Challenge Island franchise, including program delivery, curriculum implementation, marketing strategies, and business operations. The training ensures that franchisees understand the core values and methodologies of Challenge Island, enabling them to deliver high-quality STEAM programs.
Curriculum Training: A significant portion of the training focuses on the Challenge Island curriculum, which is central to the franchise’s offerings. Franchisees learn how to effectively implement the curriculum in various settings, including after-school programs, camps, and in-school field trips. This training emphasizes hands-on activities and problem-solving, ensuring that franchisees can create engaging and educational experiences for children.
Ongoing Support: After the initial training, Challenge Island provides ongoing support to its franchisees. This includes access to updated curriculum materials, marketing resources, and continuous professional development opportunities. The franchise also offers a support network, where franchisees can connect with each other and share best practices.
Additional Workshops: Franchisees may also have the opportunity to participate in additional workshops and webinars that focus on specific aspects of the business, such as advanced marketing techniques, expanding service offerings, and optimizing operational efficiency.

Territory Protection

Challenge Island franchisees benefit from a form of territory protection, ensuring that they have exclusive rights to operate within a defined geographic area.

This means that within the specified territory, no other Challenge Island franchisee can establish a competing franchise, giving the franchisee the opportunity to build and grow their business without direct competition from within the franchise network.

The specific details of territory protection, such as the size and boundaries of the territory, are typically outlined in the Franchise Agreement and are designed to give franchisees a level of security and potential market dominance in their area.