FDD ITEM 20 · FISCAL 2023–2025
Challenge Island Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2025), Challenge Island reported 170 franchised outlets at year end. 0 of 161 franchised outlets open at the start of the year left the system — an annualized exit rate of 0.0%— while 9 new outlets opened. Systemwide units moved +18.0% over 2023–2025.
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 136 | 150 | 168 |
| Opened | 15 | 22 | 9 |
| Transfers | 2 | 1 | 0 |
| Terminations | 0 | 4 | 0 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 1 | 0 | 0 |
| Outlets at end | 150 | 168 | 177 |
| Net change | +14 | +18 | +9 |
0 terminations + 0 non-renewals + 0 ceased (other) = 0 exits ÷ 161 at start = 0.0%
These are the three FTC Item 20 statuses in which a franchisee involuntarily or terminally leaves the system. Transfers (0) are resales, not exits; reacquisitions by the franchisor (0) are tracked separately. There is no official “failure rate” — this annualized exit rate is the disclosed, measurable floor.
| State | Franchised | Company-owned |
|---|---|---|
| TX | 20 | — |
| FL | 17 | — |
| GA | 14 | 7 |
| WA | 12 | — |
| CA | 10 | — |
| NY | 9 | — |
| CO | 8 | — |
| OH | 8 | — |
| AZ | 6 | — |
| NM | 6 | — |
| PR | 6 | — |
| HA | 5 | — |
| MI | 5 | — |
| PA | 5 | — |
| LA | 4 | — |
| MD | 4 | — |
| VA | 4 | — |
| MA | 3 | — |
| NC | 3 | — |
| NJ | 3 | — |
| KS | 2 | — |
| MT | 2 | — |
| NV | 2 | — |
| SC | 2 | — |
| UT | 2 | — |
| WI | 2 | — |
| AL | 1 | — |
| AR | 1 | — |
| IA | 1 | — |
| IL | 1 | — |
| IN | 1 | — |
| NE | 1 | — |
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.
Talk to an independent CPA before you buy →