Kidokinetics Franchisor Equity Raise

Overview

Kidokinetics is thrilled to offer accredited investors the chance to participate in our $1M capital raise, designed to fuel our expansion and enhance our franchise network.

With a strong track record of revenue growth and a strategic focus on boosting profitability through royalty revenue and more efficient franchisee growth, Kidokinetics presents a compelling opportunity for significant returns. Investors in Kidokinetics gain access to a potentially income-generating asset with the potential for equity appreciation, while also contributing to the widespread positive impact on children’s health and development in communities across the country.

A Business Built for Scale

Strong Top Line Growth: Steadily increasing revenue from multiple sustainable revenue streams, increasingly led by ongoing royalty fees from successful franchisees.

Scalable, Sustainable Business Model: Kidokinetics utilizes a low-overhead franchise model that leverages existing community spaces, accelerating expansion and reducing costs. With a shift toward steady royalty income, our model will enhance financial stability and rapid scalability, adaptable to diverse markets for widespread growth.

Strong Executive Team: Kidokinetics is led by founder Terri Braun and franchising expert Dave Pazgan. The board includes Nick Friedman and Omar Soliman, founders of the $300 million franchise College Hunks Hauling Junk; and Frank Milner, President of Tutor Doctor with 650 franchises worldwide. Their combined expertise propels Kidokinetics’ leadership in child fitness franchising.

Filling a Gap in the Market

Kidokinetics is revolutionizing physical education by offering privatized, structured sports programs for children, filling the gap left by schools with limited PE resources.

For investors, this means tapping into a growing market of parents (B2C) seeking accessible fitness solutions for their children, as well as schools, daycares, and community centers (B2B) looking to outsource physical education. This dual revenue model enhances scalability and profitability, creating diverse streams of income for investors while addressing an essential need in child development.

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.

Disclaimers:

(1) IRR and MOIC projections are calculated using all cash flows, including the initial investment 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 3rd year given a 2.5x increase in value.

(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 offering proceeds. 

(3) The preferred return prioritized investors receiving 2.0, or 200%, of their initial investment before profits are distributed to internal stakeholders.

(4) Kidokinetics is targeting a total raise of $600,000 in addition to the $500,000 in investment it has already secured. As part of this capital raise, Dave Pazgan and Terri Braun will be converting $542,000 of deferred compensation owed to them into the same Class B shares.

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 the Kidokinetics 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 Kidokinetics 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 Kidokinetics’ 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 Kidokinetics to be reliable, Kidokinetics 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 Kidokinetics 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.