Hawaiian Bros Midwest Fund (Tranche One)

Overview

Why We Choose Hawaiian Bros

Meet the Operators: BraveHart Development

BraveHart Development invites investors to explore an exciting opportunity with The Midwest Fund, which contains 10 Hawaiian Bros locations across the Midwest. With a minimum investment of $10,000, this offering provides a chance to diversify your portfolio with a franchise asset that has the potential for cash yields and significant equity appreciation.

IRA Eligible on AltoIRA

A management team with a proven track record

BraveHart Development is excited to present accredited investors with a unique opportunity to participate in the “Hawaiian Bros Midwest Fund.” This exclusive offering encompasses the development and management of 10 locations within the award-winning Hawaiian Bros brand, developed and operated by the team at BraveHart, with a proven track record of success.

With a portfolio that spans multiple industries—from Scooter’s Coffee and various hotel brands to Verizon—our track record is a testament to our ability to drive substantial investor returns. Notably, our existing Hawaiian Bros location has achieved profitability within a mere six months, underscoring our expertise and the brand’s robust market appeal.

Opportunities for Early Investors in BraveHart’s Phased Capital Raise

BraveHart intends to raise a total of $10,000,000 over the next few years to fund the development of 10 Hawaiian Bros restaurants. The raise will be conducted in tranches as capital is needed to develop a subset of those 10 locations.

The first tranche is for $2,500,000 to fund the currently operating Davenport, IA location and the development of the new Waukee, IA location. This tranche is priced at $1.00 per unit while future investors will pay a higher price for the same units, meaning earlier investors will likely see an immediate increase in the value of their investment.

By getting shares in this price, investors receive the following benefits:

• Larger Share of Cash Flows: Investors in the first tranche lock in their participation across all locations, including future stores funded by later tranches. While subsequent investors will enter at higher valuations and prices, early investors gain the potential upside from the full development of all locations at a lower cost.
• Maximize Early Stake for Long-Term Growth: By investing early, you’re not just betting on the success of the first two locations—you’re positioning yourself to benefit from the cash flows of the entire portfolio by locking in a larger ownership stake at a lower price. Later investors will pay more for the same participation, making your early stake more valuable.
• Compounding Returns: As more stores are added, the cash flow potential grows, meaning first-round investors stand to see compounding returns on their original investment—while paying the lowest entry price.
• Lower Execution Risk: With one location already operational, investors face less risk while still benefiting from future store developments. Success from these locations builds confidence for future rounds and supports higher valuations, increasing the value of early investments.

This phased capital raising approach benefits early investors by offering a lower entry price and the opportunity to capitalize on the company’s growth before subsequent rounds are offered at higher valuations. Early participants not only benefit from this lower price but also secure a larger share of future profits, positioning themselves for greater long-term returns compared to later investors.

Steps to Invest through FranShares

• Review the Offering
  Start by exploring all the details of the Kidokinetics investment opportunity. Ensure it aligns with your financial objectives by reviewing the projected returns, growth strategy, and business model.

• Register for the Offering
  Click the invest now button to sign up for the investment, which is managed through our partner Securitize, a trusted platform specializing in investor onboarding, compliance, and management.
  
  Securitize helps streamline the investment process by handling registration, accreditation, and funding securely and efficiently. You can register as either an individual or an entity.
  
  For assistance during this process, contact: investorsupport@securitize.io.

• Verify Your Identity
  Complete the Know Your Customer (KYC) process in your Securitize portal, which includes submitting a government-issued ID and personal information. This is required to comply with regulations and prevent fraud.

• Make a Non-binding Investment Pledge
  Indicate the amount you intend to invest. This pledge is non-binding and helps us understand your level of interest without any commitment at this stage.

• Sign the Subscription Agreement
  After reviewing your investment pledge, sign the subscription agreement to confirm your investment and finalize the amount.

• Prove Your Accreditation Status
  Once you’ve signed the subscription agreement, the next step is to verify your accreditation status.
  
  The easiest way to complete this is through a third-party verification document from your accountant, attorney, or financial advisor. Simply upload the completed document directly via the Securitize platform.
  
  Alternatively, you can provide income documents (showing at least $200k individually or $300k jointly) or evidence of a net worth of $1M.

• Fund Your Investment
  Once your accreditation is confirmed, you will receive detailed instructions on how to transfer your funds. Use the provided wire instructions through Securitize to complete your investment.

For questions about the investment process please reach out to support@franshares.com.

Disclosures

1. IRR and MOIC projections are calculated using all cash flows, including the initial investment of $10,000,000 of offering proceeds, annual earnings before interest, depreciation and amortization (“EBITDA”), less estimated corporate taxes, and the sale of the entire portfolio at the end of the eighth year at 7x EBITDA.

2. Cash yield projections are calculated as the arithmetic mean (average) of five years of annual cash flows (including EBITDA, less estimated corporate taxes) divided by the initial investment of $8,000,000 of offering proceeds. 

Management’s expectations are based upon the following assumptions:

• The development of 10 Hawaiian Bros restaurants and BraveHart’s projections of company performance.
• The initial investment amount for each Hawaiian Bros franchise is based on BraveHart’s goal of leveraging a build to suit development strategy whenever possible to minimize costs by avoiding land and construction costs.
• The portfolio is held for eight years and the entire portfolio is sold at 7x EBITDA at the time of sale.

Management’s expectations are inherently uncertain and could vary significantly from the estimates set forth herein if any or all of the assumptions on which the estimates are based do not come to fruition.  Actual results may differ materially from the estimates set forth herein, including those discussed in the section entitled “Risk Factors” and elsewhere in the private placement memorandum.

The information set forth in this document (including any written materials provided herewith) is proprietary and shall be maintained in strict confidence. Each recipient hereof acknowledges and agrees that the contents of this document (i) constitute proprietary and confidential information that FranShares, Inc. (together with its affiliates) derive independent economic value from not being generally known and (ii) are the subject of reasonable efforts to maintain their secrecy.

The recipient further agrees that the contents of this document are a trade secret, the disclosure of which is likely to cause substantial and irreparable competitive harm to BraveHart and/or FranShares. Any reproduction or distribution of this document, in whole or in part, or the disclosure of its contents, without the prior written consent of BraveHart and/or FranShares, is prohibited. This document will be returned to FranShares upon request.

This document contains various estimates of financial information and valuation of securities. While all such information is presented based on the exercise of BraveHart’ reasonable judgment, there can be no assurance that such information will prove to be accurate or that such valuations reflect the true fair market value of the securities referenced. In addition, certain factual statements made herein are based on information from various sources prepared by other parties. While such sources are believed by BraveHart to be reliable, BraveHart does not assume any responsibility for the accuracy or completeness of such information. For avoidance of doubt, this information has not been independently verified by FranShares. FranShares does not assume any responsibility for the accuracy or completeness of such information.

FranShares has entered into an agreement with the issuer to provide marketing services in exchange for the following cash fees: a $20,000 one-time listing fee, a $5,000 fee for each additional close following the first close, and a $1,000 monthly platform fee.

Certain statements in this document constitute forward-looking statements. When used herein, the words “project,” “anticipate,” “believe,” “estimate,” “expect,” and similar expressions are generally intended to identify forward-looking statements. Such forward-looking statements, including the intended actions and performance objectives of the relevant party referenced herein, involve known and unknown risks, uncertainties, and other important factors that could cause the actual results, performance, or achievements of such party to differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements. All forward-looking statements in this document speak only as of the date hereof. FranShares and BraveHart expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectation with regard thereto or any change in events, conditions, or circumstances on which any such statement is based. Furthermore, nothing contained herein is, or should be relied upon as, a promise or representation as to the future performance of any fund sponsored by FranShares.