Are the estimated initial expenses for a Kidokinetics Business a guarantee of actual costs?

[Item 7: ESTIMATED INITIAL INVESTMENT]

Notes:

These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating your Kidokinetics Business. We do not offer direct or indirect financing for these items. All expenditures paid to us or our affiliates are uniform and non-refundable under any circumstances once paid. All expenses payable to third parties are non-refundable, except as you may arrange for deposits and other payments.

• 1. Initial Franchise Fee and Initial Enhanced Business Coaching and Training. These initial fees are described in greater detail in Item 5 of this Franchise Disclosure Document.
• 1. Furniture, Fixtures & Equipment. You must purchase (or lease) furniture, fixtures and equipment such as a desk, chair, filing cabinet, bookcase of shelving, etc. and a workspace with computer workstation with printer/fax/scanner. Although some of these items may be leased, the range

• shown represents an estimated purchase price.

This estimate includes purchase of a Computer System which we estimate to be between $500 and $1,500.

• 1. Insurance. You must obtain and maintain, at your own expense, the insurance coverage we require, and satisfy other insurance-related obligations.

Please note that if you have had prior issues or claims from previous operations unrelated to the operation of a Kidokinetics Business, your rates may be significantly higher than those estimated above.

Office Equipment and Supplies.

You must purchase general office supplies including stationery, business cards and typical office equipment.

Factors that may affect your cost of office equipment and supplies include local market conditions, competition among suppliers and other factors.

We do not know if the amounts you pay for office equipment and supplies are refundable.

You should inquire about the return and refund policy of the supplier at or before the time of purchase.

Factors that may affect your cost of office equipment and supplies include local market conditions, competition among suppliers and other factors.

• 1. Initial Inventory. You must purchase an initial inventory of play equipment, including balls of all types, fitness dice, lacrosse set, polyspots, juggling scarves, Little Tikes golf clubs, mini basketball hoops, baseball bases and bats, T-ball set, bowling set of pins and balls, tunnels, rope, footballs, bean bags, Frisbees, plastic cones, jump ropes, potato sacks, egg and spoon set, hula hoops, nets and goals, volleyballs, parachutes, hockey pucks and sticks, badminton sets, tennis racquets, etc.

The cost of these items may vary based on manufacturers' discounts and specials at the time of purchase and other factors.

We do not know if the amounts you pay for inventory items are refundable.

You should inquire about the return and refund policy of the suppliers at or before the time of purchase.

• 1. Training. The cost of training is included in the Initial Franchise Fee, but you are responsible for transportation and expenses for meals and lodging while attending training.

The total cost will vary depending on the number of people attending, how far you travel and the type of accommodation you choose.

• 1. Professional Fees. You will need to employ an attorney, accountant/CPA and other consultants to assist you in establishing your Kidokinetics Business. These fees may vary from location to location depending upon the prevailing rates of local attorneys, accountants and consultants.
• 1. Our estimates are based on our experience and the experience of our affiliates in establishing Kidokinetics Businesses, and our current requirements for Kidokinetics Franchises.

Notes:

These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating multiple Kidokinetics Business. We do not offer direct or indirect financing for these items. All expenditures paid to us or our affiliates are uniform and non-refundable under any circumstances once paid. All expenses payable to third parties are non-refundable, except as you may arrange for deposits and other payments.

• 1. This is an estimate of your initial start-up expenses for operating under multiple franchise agreements in multiple territories. You should review these figures carefully with a business advisor before making any decision to purchase the Franchise(s).

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)