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The real numbers on owning a Challenge Island franchise
Educational Services - STEAM Programs for Children · FDD 2026 · from public state filings
FDisclosure honesty
This franchisor discloses little to no earnings data (Item 19).
Investment
$58,465–$74,050
Total fees
9% of sales
Outlets
177
Closure signals
9 ceased
Lawsuits
2
What their own earnings claim actually says
Item 19 not provided in excerpts. FDD includes standard disclaimer directing franchisees to seek earnings data from current/former franchisees listed in Item 20.
Honesty grade F: the disclosed numbers are incomplete or framed to look better than an owner's real take-home.
Failure & turnover reality (Item 20)
9 outlets ceased operations in 2025; 2 transfers in recent years suggest modest system churn.
Legal history (Item 3)
2 matters disclosed.
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The franchisor won't put real owner profit in writing. We do — reconstructed from their own FDD.
Franchisor's framing: Item 19 not provided in excerpts. FDD includes standard disclaimer directing franchisees to see…
🔒 Real estimated owner take-home (low / median / high) — unlocked in the report
Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
Break-even timeline + cash-on-cash ROI on your investment
Full fee stack + required-purchase markups
Decoded real failure / closure rate
How it ranks vs comparable franchises
Validation-call playbook — who to call + the exact questions
The FDD lists a total initial investment of about $58,465–$74,050, including a $49,900 initial franchise fee.
How much do Challenge Island franchise owners make?
Challenge Island discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
What is the Challenge Island franchise failure rate?
9 outlets ceased operations in 2025; 2 transfers in recent years suggest modest system churn.
Is a Challenge Island franchise worth it?
It depends on the numbers, not the pitch. Challenge Island scores F on disclosure honesty, carries about 9% of sales in ongoing fees, and discloses 2 legal matters. Get the real owner take-home before you sign.
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Source: MN CARDS 36846-202606-05 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Challenge Island or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.