Challenge Island Franchise Disclosure Document (FDD): Key Facts & Financials
The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.
This page summarizes the key facts and financials from Challenge Island's FDD, including franchise costs (Item 7), ongoing fees (Item 6), and unit growth trends (Item 20).
What the Challenge Island FDD Covers
Required disclosure items from the franchisor
Franchisor Background
Items 1-4: Company history, litigation, bankruptcy
Fees & Costs
Items 5-7: Initial fees, ongoing fees, total investment
Obligations & Restrictions
Items 8-16: Purchasing, territory, trademarks
Financial Performance
Item 19: Not disclosed by this franchisor
Franchise Costs (Item 7 Summary)
Initial investment required to open a franchise
Investment Breakdown
+ 5 more categories
Ongoing Fees (Item 6 Summary)
Recurring fees paid to the franchisor
Other Ongoing Fees
Item 19 Financial Performance
Revenue and financial data (if disclosed)
No Item 19 Disclosure
Challenge Island does not provide a Financial Performance Representation in their FDD. Franchisors are not required to disclose this information.
Unit Growth & Franchisee Behavior (Item 20)
Franchise system size and trends
197
Total Units
+17
Net Growth (YoY)
+9.4%
Growth Rate
What the FDD Doesn't Make Obvious
Key considerations beyond the disclosure
Legal History
This FDD discloses litigation history. Review Item 3 carefully to understand the nature and outcome of any legal proceedings.
Real Estate & Location
FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.
Working Capital Needs
Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.
No Revenue Disclosure
Without Item 19 data, you'll need to conduct your own due diligence on unit economics by speaking directly with existing franchisees.
Related Resources
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