Start a Challenge Island Franchise in 2025

2025 Franchise 500 Rank: #419 Ranked #376 last year

Initial investment: $58K - $74K

Units as of 2025: 252 35.5% over 3 years

Challenge Island is an international educational enrichment program for children. Challenge Island's Science, Technology, Engineering, Arts, and Math (STEAM) program equips students with skills including creativity, critical thinking, problem solving, and social emotional skills.

Award-winning author, educator, and parenting expert Sharon Duke Estroff M.A.T. founded Challenge Island in 2003. The company started franchising in 2012 and currently has over 175 franchise units globally.

Why You May Want to Start a Challenge Island Franchise

For a visionary and passionate person who loves working with children, Challenge Island is an excellent opportunity to start a fulfilling career. Challenge Island will train you in their top-rated curriculum that is trusted by educators and parents. As a Challenge Island franchisee, you will receive all the tools you need to maximize your business success potential using the company's tested and popular home-based franchise model.

As a franchisee, you will make a difference in children's lives through fun and educational activities. You will be part of a renowned educational program that offers a proven curriculum and introduces students to a new academic world through STEAM and STEM enrichment classes, field trips, camps, family events, birthday parties, scout workshops, and more.

What Might Make a Challenge Island Franchise a Good Choice?

The Challenge Island franchise network is a top program in the STEAM sector. Franchisees have various business streams and multiple profit centers. These include:

Afterschool enrichment classes
In-school field trips
Educational summer camps
Birthday parties
Kids nights out
Virtual learning programs
Corporate team building
Preschool programs

To franchise a Challenge Island location, be prepared to invest financially. Franchisees will need to meet a company set liquid capital and net worth. You will need to pay a franchise fee along with an investment range depending upon site location, employee wages, etc. Teachers and veterans are offered a discount on the company franchise fee.

Challenge Island offers full support, including on-the-job and classroom training. They will help you market your franchise through regional advertising, website development, email marketing, and social media.

How to Start a Challenge Island Franchise

The initial inquiry may garner a franchise representative contacting you to discuss the franchise opportunity further. As you move through the franchise process, you may have the chance to talk with other Challenge Island franchisees. Current franchisees may give you advice and insight into operating a Challenge Island franchise.

As you make your decision regarding whether to open a Challenge Island franchise, make sure you take time to explore the opportunity. Research the brand and your local area to see if a franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.

If you are chosen to franchise with Challenge Island, you will be expected to attend a three-day training in Atlanta, Georgia to prepare you to launch and grow your own local Challenge Island franchise. You may receive on the job training at a franchised Challenge Island to familiarize yourself with how you should operate the business. As you near the opening of your location, Challenge Island will continue to support you as you prepare to teach and inspire the next generation of children.

Company Overview

About Challenge Island

Industry	Children's Businesses
Related Categories	Children's Enrichment Programs: STEM, Children's Enrichment Programs: Miscellaneous, Tutoring, Children's Education/Enrichment
Founded	2003
Parent Company	Challenge Island Global
Leadership	Sharon Estroff, Founder/CEO
Corporate Address	4590 Lasalle Ct. Marietta, GA 30062
Social	Facebook, Twitter, LinkedIn, Instagram, YouTube, TikTok

Business Overview

Franchising Since	2012 (13 years)
# of employees at HQ	8
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises worldwide.
# of Units	252 (as of 2025)

Information for Franchisees

Here's what you need to know if you're interested in opening a Challenge Island franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$49,900
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$58,465 - $74,050
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$100,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$50,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	10% off franchise fee
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	7%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	2%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	Challenge Island has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

Classroom Training	24 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Grand Opening Online Support Security & Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates Social Media SEO Website Development Email Marketing

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	Yes
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	Yes
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes