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Challenge Island

Challenge Island Global

Company Information

4590 LaSalle Ct.

[email protected]

Challenge Island Global, LLC is a Georgia limited liability company, formed on September 24, 2015. They maintain our principal place of business at 4590 LaSalle Ct., Marietta, Georgia 30062. They have been offering Challenge Island® franchises since December 9, 2015.

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

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

10/10

Investment Accessibility

10/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of Challenge Island Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $44,900 Maximum: $44,900

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $53,425 Maximum: $68,925

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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