How much does a Challenge Island franchise owner make?

Challenge Island franchise earnings and revenue can vary significantly from one franchisee to another.
The Challenge Island franchise owner profits can be influenced by labor costs, lease rates, hours worked as well as other factors.

Challenge Island unfortunately does not disclose financials on how much Challenge Island franchise owners make. This means they do not disclose sales or earnings for franchisees operating in the U.S.

Every franchisor is required by law to disclose income statements and balance sheets for how the franchisor is performing but not for the franchisee level. Unfortunately, Challenge Island does not make it easy to understand franchisee financial performance. This can be seen as a red flag and it is important to be that much more diligent in your conversations with Challenge Island franchisees. Do note that Challenge Island is not alone as about 40% of franchises do not disclose franchisee financial performance.

At Vetted Biz, we suggest you to speak with 5 to 10 Challenge Island franchisees to understand how much money they are making from their Challenge Island business.

You should also speak to former Challenge Island franchisees to understand why they left the system. Did they sell their Challenge Island at a profit? Were they forced to close their Challenge Island franchise down because it kept losing money?

What is the Challenge Island franchise fee?

Owning a Challenge Island franchise requires 7% royalty fee and 2% marketing fee. These two expenses represent the main ongoing costs you can expect to pay the franchisor throughout the franchise relationship. There may be other ongoing fees disclosed in the Challenge Island Franchise Disclosure Document

Keep in mind, there is also an initial Challenge Island franchise fee of $39,900 that is included in the initial investment amount of $48,300 to $62,950. Depending on the franchise agreement you sign, you might have to pay the full franchise fee again if you decide to extend the Challenge Island franchise relationship. Consult with a licensed franchise attorney to understand exactly what you receive for paying the Challenge Island franchise fee of $39,900.

Visit the Challenge Island metrics tab to explore the financials for this business, royalty and marketing fees compare to other Education Programs franchises. You can also compare these fees for 2,000+ franchises currently offered in the U.S.

When was Challenge Island founded?

Challenge Island started offering franchises in 2012. Challenge Island was founded 19 years ago in 2003.

At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!

How many Challenge Island locations are in the U.S.?

As of 2021, there were 112 locations across the U.S. There are also 7 corporate locations. Most Education Programs franchises like Challenge Island have more franchised locations than corporate locations.

How many Challenge Island franchises opened over the past few years?

Over the prior 3 years we have data for, Challenge Island has opened 67 outlets throughout the U.S. Visit the Challenge Island metrics tab to explore how the openings compare to other Education Programs franchises.

How many Challenge Island franchises closed over the past few years?

Over the prior 3 years we have data for, Challenge Island has closed 11 outlets throughout the U.S

Visit the Challenge Island metrics tab to explore how the openings compare to other Education Programs franchises.

Is Challenge Island growing? Are they opening more locations than they are closing?

The net unit growth rate for Challenge Island over the past 3 years is 100%. Over the last year we have data for, Challenge Island had a net unit growth rate of 18%.

Without a comparison, this number doesn’t mean much. Compare how the Challenge Island growth rate compares to 2,000+ other franchises and Industry franchises like Challenge Island. More info in the Challenge Island metrics tab.

Is Challenge Island franchise eligible for an SBA Loan?

Challenge Island is eligible for SBA loans including the 7(a) loan. To find out more about the SBA loan program for franchising click here.

Challenge Island franchise was assigned the SBA Franchise ID of S2998 on 04/24/2018. This DOES NOT mean the SBA endorses this franchise. The SBA Franchise Directory will only include business models like Challenge Island that are reviewed and found eligible under SBA’s affiliation rules and other eligibility criteria. Currently, there are over 7,000 franchise opportunities that the SBA has deemed eligible for SBA financing.

Is Challenge Island a franchise in the United States?

According to the SBA, Challenge Island meets the Federal Trade Commission (FTC) definition of a franchise. The FTC Franchise Rule requires franchisors to provide all potential franchisees with a disclosure document (FDD) containing 23 items about the franchise, its officers, and other franchisees. Be sure that Challenge Island provides you with an FDD if you are in discussion to buy a Challenge Island.

What is the Challenge Island Franchise for Sale Rate?

The Challenge Island systemwide health and franchisee satisfaction can be measured by the Challenge Islandfranchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor.

Challenge Island franchise for sale rate over the past 3 years is 6%. Over the last year we have data for, Challenge Island had a franchise for sale rate of 4%.

Without a comparison, this number doesn’t mean much. Compare how the Challenge Island franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Challenge Island. More info in the Challenge Island metrics tab.

What is the Challenge Island Franchise Failure Rate?

Challenge Island franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons. The failure rate is one of the most important franchise metrics to consider when investing in a franchise!

Challenge Island failure rate over the past 3 years is 10%. Over the last year we have data for, Challenge Island had a franchise failure rate of 4%.

Without a comparison, this number doesn’t mean much. Compare how the Challenge Island franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Challenge Island. More info in the Challenge Island metrics tab.

How can I find out more details on Challenge Island franchise?

Visit the Challenge Island metrics tab to explore franchise profitability, industry comparables and more. Become a Vetted Member today today for exclusive access on this franchise opportunity!