What are the initial fees for a Kidokinetics franchise (Item 5) and what ongoing fees are required as described in Item 6?

[Item 5: INITIAL FEES]

ITEM 5. INITIAL FEES

Initial Franchise Fee

The initial franchise fee ("Initial Franchise Fee") for a Kidokinetics Business is $60,000. The Initial Franchise Fee is paid to us in a lump sum when you sign the Franchise Agreement and is non-refundable. The Initial Franchise Fee is payment, in part, for expenses incurred by us in furnishing assistance and services to you and for costs incurred by us, including general sales and marketing expenses, training, legal, accounting and other professional fees.

We may also allow franchisees, in our discretion, to purchase multiple franchises (up to four) ("Multi-Franchise"). If you purchase a Multi-Franchise, you will enter into separate Franchise Agreements for each Franchise and pay a reduced Initial Franchise Fee for the additional Franchises: (a) $60,000 for the first Franchise Agreement; (b) $40,000 for the second Franchise Agreement; and (c) $35,000 under the third and fourth Franchise Agreements.

We currently offer a reduced Initial Franchise Fee for veterans. Under this program, honorably discharged United States veterans or their spouses receive a 5% discount on our Initial Franchise Fee for each Kidokinetics Franchise they purchase. You are required to provide us with a copy of your DD214 to receive this discount.

The Initial Franchise Fee is uniform for all franchisees offered a Franchise under this Franchise Disclosure Document as described above. During our last fiscal year which ended December 31, 2023, we collected Initial Franchise Fee ranging from $17,500 (for a Franchise sold to one of our officers) to $60,000.

Initial Marketing Package

We will provide an initial marketing package ("Initial Marketing Package") when you sign your Franchise Agreement. You will pay us $5,000 for the Initial Marketing Package for your first Franchise and it includes updating the Kidokinetics website and social media to incorporate reference to your Kidokinetics Business, two whip banners, a package of collateral materials, a local press release, and a direct mail marketing campaign targeting institutional client opportunities. This fee for the Initial Marketing Package for your first Franchise is uniform and non-refundable and is due when you enter into your first Franchise Agreement.

[Item 5: INITIAL FEES]

If you purchase a Multi-Franchise or purchase additional Franchises, you will pay us $1,000 for the Initial Marketing Package for each additional Kidokinetics Business you open. The Initial Marketing Package for additional Franchises includes a direct marketing campaign targeting institutional client opportunities. This fee for the Initial Marketing Package for additional Franchises is uniform and non-refundable and is due when you enter into the franchise agreement for the additional Franchise.

Software License Fee

You must pay us a software licensing fee ("Software License Fee") for our proprietary KIDOLINK software for each Kidokinetics Business you operate. You will pay us a Software License Fee of $3,000 when you sign your first Franchise Agreement for our proprietary business management software. This fee is uniform and non-refundable. You must also sign the "Software License Agreement," the form of which is attached to this Franchise Disclosure Document in Exhibit H, when you sign the Franchise Agreement. If you purchase a Multi-Franchise or additional Kidokinetics Businesses, you will pay us $1,000 for the Software License Fee for each additional Kidokinetics Business you open. The Software License Fee for additional Kidokinetics Business is uniform and non-refundable and is due when you enter into the Franchise Agreement for the additional Kidokinetics Business.

Enhanced Business Coaching and Training Services

If you are purchasing your first Kidokinetics Business, you will be required to pay a fee of $7,500 for certain opening support services (the "Enhanced Business Coaching and Training Fee"). The Enhanced Business Coaching and Training Fee includes two days of in-person business coaching and training services ("Enhanced Business Coaching and Training Services") within your Territory (as defined in Item 12). If you purchase additional Kidokinetics Business, you are not required to buy the Enhanced Business Coaching and Training Services, but you can choose to pay the Enhanced Business Coaching and Training Fee if you want optional Enhanced Business Coaching and Training in your Area. This fee is due upon signing the Franchise Agreement.

[Item 6: OTHER FEES]

• Fees.

All fees paid to us or our affiliates are uniform and not refundable under any circumstances 1. once paid.

Fees paid to vendors or other suppliers may be refundable depending on the vendors and suppliers.

We currently require you to pay fees and other amounts due to us or our affiliates via electronic funds transfer ("EFT") or other similar means.

You are required to complete the ACH authorization (in the form attached to this Franchise Disclosure Document in Exhibit H).

We can require an alternative payment method or payment frequency for any fees or amounts owed to us or our affiliates under the Franchise Agreement.

If you purchase multiple Kidokinetics Businesses, the fees indicated in the chart above are the fees charged and/or incurred for each Kidokinetics Businesses except as otherwise noted.

All fees are current as of the Issuance Date of this Franchise Disclosure Document.

Certain fees that we have indicated may increase over the term of the Franchise Agreement.

All fees are current as of the Issuance Date of this Franchise Disclosure Document.

Certain fees that we have indicated may increase over the term of the Franchise Agreement.

Also, any fee expressed as a fixed dollar amount is subject to adjustment based on changes to the Consumer Price Index ("CPI") in the United States.

We may periodically review and increase these fees based on changes to the CPI (in addition to any other increase), but only if the increase to the CPI is more than 5% higher than the corresponding CPI in effect on: (a) the effective date of your Franchise Agreement (for the initial fee adjustments); or (b) the date we implemented the last fee adjustment (for subsequent fee adjustments).

We will notify you of any CPI adjustment at least 60 days before the fee adjustment becomes effective.

We will implement no more than one CPI-related fee adjustment during any calendar year.

We will notify you of any CPI adjustment at least 60 days before the fee adjustment becomes effective.

We will implement no more than one CPI-related fee adjustment during any calendar year.

• 1. Royalty Fee: "Gross Sales" means the revenues you receive from the sale of all goods, services and products sold at, from, or through the Kidokinetics Business or made pursuant to the rights granted hereunder, and all other income of every kind and nature related to the Kidokinetics Business, whether from cash or credit or otherwise, and regardless of collection in the case of credit, including the full redemption value of any gift card, gift certificate or coupon sold for use in the Kidokinetics Business (fees retained by or pai