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Business Description

We are a Georgia limited liability company formed on September 24,2015 Our principal place of busmess at 4590 LaSalle Ct, Marietta, Georgia 30062 We are a Georgia limited liability company, formed on September 24, 2015 We conduct business under the name and mark “Challenge Island” We do not conduct business under any other name or mark We have never engaged in any business except granting franchises to operate Challenge Island businesses and providing support services to Challenge Island franchisees We have no parents

Prior Experience

Our affiliate, Kidsplorations, LLC (“Kidsplorations”), is a Georgia limited liability company formed on July 9, 2012, with its principal business address at 4590 LaSalle Ct, Marietta, Georgia 30062 Our CEO, Sharon Duke Estroff is the sole member of Kidsplorations Kidsplorations has operated a Challenge Island business substantially similar to the franchise being offered in this Disclosure Document since its formation Our other affiliate. Challenge Island IP Holdings, LLC (“CIG IP”), is a Georgia limited liability company formed on September 24, 2015, with its principal business address at 4590 LaSalle Ct, Marietta, Georgia 30062 CIG IP owns and licenses to us the right to use and sublicense the Marks (as defined in Item 13) Our CEO, Sharon Estroff, founded the Challenge Island brand in August 2003 and operated a Challenge Island busmess in Atlanta, Georgia under the Marks until she sold the rights to the Marks and the Challenge Island system to our predecessor is Cl Franchise Company, LLC (“Cl Franchise Co”), a Florida limited liability company, with its principal business address of 701 Market Street, St Augustine, Florida 32095, on September 14, 2012 Cl Franchise Company's parent company. Creative Learning Corporation, also owned Bncks 4 Kids, a S T E M franchised concept Cl Franchise Co offered Challenge Island franchises from September 2012 until November 2015 Durmg such time that Cl Franchise Co owned the Challenge Island system, Ms Estroff provided programs, lesson plans and other Proprietary Products and conducted training for franchisees as an independent consultant of Cl Franchise Co

Business Offered

As a Challenge Island franchisee, you will own and operate a mobile, service busmess (the “Franchised Business”) under the “Challenge Island” name and other trademarks, trade names, service marks, design marks and logos (the “Marks,” as further defined m Item 13) We refer to all businesses using the Marks and our System (defined below) as “Challenge Island Businesses ” Challenge Island Businesses offer project-based programs providing unique challenge-based programs designed to foster critical and creative thinking skills, problem solving methodology, and core STEAM (Science, Technology, Engineering, Art, Mathematics) principles m children ages 4-14+ through classes, workshops and other organized activities conducted after school classes in preschools, elementary schools and middle schools, as part of school field trips, during camps (including school holiday and summer vacation camps) and at birthday parties (wherever held, including parks, family entertainment centers, community centers and similar public venues) (collectively, the “Services”) The Services are provided by Challenge Island Busmesses usmg our busmess formats, methods, procedures, signs, designs, layouts, standards, specifications and Marks (collectively, the “System”) and proprietary curriculum, lesson plans, model plans, project kits developed and manufactured by us or our affiliates or on our or their behalf (the “Proprietary Products”) We may improve or modify the System and Proprietary Products at any time Your Franchised Business will be located in an exclusive territory (“Territory”), subject to certain rights reserved by us, defined by zip codes that we designate The general market for the Services your Franchised Business will offer is primarily children between the ages of 4 and 14+, however we have developed programs for other age groups including adults We currently offer a Challenge Island Senior program as a cognitive skills-focused program for senior citizens We may offer additional programs m the future You will compete with other companies and non-profit organizations that offer similar classes, workshops, camps and birthday parties, which may be local, regional or national and franchised or non- franchised The market for the Services that you will offer from your Franchised Busmess is well-developed and competitive nationally

Initial Fees

The initial franchise fee for a Franchised Business is $39,900 The initial franchise fee is uniform for all franchisees It is fully earned when received by us and non-refiindable when paid If you purchase an existing Franchised Business, you will pay a transfer fee in the amount of 10% of the then-current initial franchise fee instead of the initial franchise fee

Financing

We do not offer direct or indirect financing We do not guarantee your note, lease or other obligations

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the Disclosure Document Financial performance information that differs from that included in Item 19 may be given only if (1) a franchisor provides the actual records of an existmg outlet you are considering buying, or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets We also do not authorize our employees or representatives to make any such representations either orally or in writing If you are purchasing an existmg outlet, however, we may provide you with the actual records of that outlet If you receive any other financial performance information or projections of your future income, you should report it to our management by contacting Sharon Estroff, 4590 LaSalle Ct, Marietta, Georgia 30062, (404) 692-3103, the Federal Trade Commission, and the appropriate state regulatory agencies