OFFICIAL FILING · MN · 2026
Challenge Island FDD (Franchise Disclosure Document) — 2026
The FDD is the 23-item legal disclosure every U.S. franchisor must hand you at least 14 days before you sign or pay anything (FTC Franchise Rule, 16 CFR 436). Challenge Island's most recent FDD tracked here was filed in 2026 with the Minnesota Department of Commerce (public CARDS portal) — and because registration-state filings are public records, you can read it free, without giving a broker your phone number.
THE SAME DOCUMENT SITES SELL OR GATE BEHIND LEAD FORMS. FILED 2026 · SOURCE STATE MN
| ITEM 5 | Initial franchise fee | $50K |
| ITEM 6 | Ongoing royalty | 7.0% of gross sales |
| ITEM 7 | Total initial investment | $58K–$74K |
| ITEM 3 | Disclosed litigation matters | 2 |
| ITEM 19 | Earnings disclosure (FPR) | Yes — median unit volume $60K (Table 3 ("Average Gross Revenue Of All Full-Time Franchisees For 2025"): 74 Territories in Group, 50 Franchisees in Group, Average $80,569, Median $60,411, High $268,189, Low $16,300, 17 of 50 (34%) over avg. Top-quartile figure is from Table 1 ("Average Gross Revenues Of All Full-Time Franchisees Based On Percentage Category For 2025"), Top 25% row: 12 Franchisees in Group / 25 Territories in Group, Average $184,332, Median $193,233, High $268,189, Low $114,125, 6 of 12 (50%) over avg. Notes to Tables 1-8: "C. The figures in this Item 19 are based on financial reports that franchisees submitted to us through our Franchise Management Tool during the 2025 calendar year and additional data that franchisees provided. This data represents 50 Full-Time franchisees (covering 74 territories) and 10 Part-Time franchisees (covering 31 territories)." "D. During the 2025 calendar year, represents 50 Full-Time franchisees (covering 74 territories) and 10 Part-Time franchisees (covering 31 territories) met our reporting requirements, out of a total system size of 93 franchisees (representing 170 territories)." "E. The data in Tables 1 through 8 exclude 33 franchisees (comprising 65 territories) for the following reasons: (a) 3 franchisees (comprising 5 territories) ceased operations due to personal health-related matters that prevented them from managing day-to-day operations of the Franchised Business; (b) 23 franchisees (comprising 50 territories) did not provide data to us as required under our reporting requirements; and (c) 7 franchisees (comprising 10 territories) were in operation for fewer than 12 months as of the end of the fiscal year. Company-owned (or affiliate-owned) Territories are not included in the data." "The financial performance representations appearing in this Item 19 constitute a historic representation. To the best of our knowledge, all of our franchisees use the cash basis of accounting.") |
| ITEM 20 | Outlets (fiscal 2025) | 170 franchised at year end · 0 exits (0.0% annualized) |
| ITEM 21 | Franchisor financial statements | clean (unqualified) audit opinion — Muhammad Zubairy, CPA PC |
Citation discipline: every figure above is extracted from the 2026 Challenge Island FDD as filed and links back to that document. Fields the filing did not state are omitted — nothing here is estimated, surveyed, or filled in from marketing material. FDDs are reissued annually; verify against the current issuance before relying on any number.
Challenge Island FDD questions, answered
Where can I download the Challenge Island FDD for free?
Challenge Island's 2026 Franchise Disclosure Document is a public record, filed with the Minnesota Department of Commerce (public CARDS portal). It can be downloaded free from the source link on this page — no broker form, no email signup required.
What year is Challenge Island's most recent FDD on file?
The most recent Challenge Island FDD tracked here was filed in 2026 with the Minnesota Department of Commerce (public CARDS portal). Franchisors must update their FDD annually, so confirm you are reading the current issuance before signing.
Does Challenge Island's FDD disclose earnings (Item 19)?
Yes — Challenge Island makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $60K. Read the basis fine print: franchisors choose which units and metrics to include.
What does Challenge Island's FDD Item 20 show?
In fiscal 2025, Challenge Island ended with 170 franchised outlets; 0 of 161 open at the start of the year left the system — an annualized exit rate of 0.0% (terminations, non-renewals, and "ceased operations — other reasons").
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing Challenge Island's numbers, including talking you out of a bad deal.
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