1. What does a Kid to Kid franchise cost? Including a franchise fee of $25,000, we estimate that it will cost between $148,261 and $198,361 to purchase the franchise and open a store.

Low High Franchise Fee 25,000 25,000 Training Expenses 2,000 6,000 Real Estate Costs 15,000 30,000 Fixtures 25,000 45,000 Signs 4,000 8,000 Computer Equipment 14,861 14,861 Advertising 2,000 3,000 Inventory, Supplies 20,000 30,000 Loan Fees 1,500 2,500 Incorporation 500 1,000 Licenses, Permits 400 3,000 Supplies, Misc. 3,000 5,000 Working Capital 25,000 40,000 TOTAL $141,761 $216,361

2. Will Kid to Kid finance my store?

No. But we will assist you in preparing a business plan to obtain SBA guaranteed or other financing. For those who qualify, SBA financing is available for up to 70% of the initial investment.

3. How much cash do I need to obtain a loan?

Usually $30,000 to $40,000, although having more cash may reduce your risk.

4. What rights do I receive when I purchase a franchise?

As a Kid to Kid franchisee you have the right to operate a Kid to Kid store for a ten year period at a designated location. No other Kid to Kid store may operate within three miles of your store.

5. How much money can I make?

As with most small businesses, there is no guarantee that you will make any money. Your success will be affected by your location, expenses, work ethic, and other factors.

6. How will I acquire my initial inventory?

During the training program you will learn how to use our Kid to Kid Buyer computer program to purchase and price inventory. You will begin buying inventory (without selling it) in your store approximately five weeks before your grand opening.

7. What ongoing fees does Kid to Kid charge?

Our royalty fee is 5% of gross sales, exclusive of sales tax. In addition you pay 1/2 of 1% of gross sales to the Marketing Fund which is used to promote all the stores in the Kid to Kid system. An additional $100/month is paid for computer upgrades and $100/month is paid specifically for expenses related to Kid to Kid conventions and training sessions. These monies are kept in trust by Kid to Kid.

8. How does Kid to Kid prepare me to be successful?

Our success is a reflection of your success as a store owner. We have developed, and work continuously to improve, tools and procedures designed to improve store performance. Prior to opening your store you will receive training in the following subjects:

Business Planning: Kid to Kid will evaluate your market, and help you set sales, expense, and profit goals. You will use your plan as a guide and as a tool to obtain financing. Marketing: Kid to Kid will help you identify your target customers and develop a plan to earn and maintain their business. Marketing support is an ongoing benefit that each Kid to Kid owner is entitled to. Inventory Management: Having the right quantity, quality, and selection of inventory is critical to your success! We will teach you how to buy, price, display and sell product using the custom Kid to Kid Buyer software. This program is constantly being updated to reflect the changing retail industry. Operations: Your store will carry over 10,000 items! Our Kid to Kid Buyer will enable you to efficiently track and account for them, including inventory levels and COGS for every item. Bookkeeping: A simple computerized bookkeeping system (Quickbooks) is used to track and control your income, expenses, and profits. Administration: You will learn how to find, hire, and train good employees, and how to work together to increase sales and maximize profits.

9. Can I operate this business part time?

Not initially. For the first six months of operation, you must work full-time in the store. After that time you may hire a manager to oversee the day-to-day operations of the store, but we recommend that you remain actively involved.

10. What type of individuals are best suited to owning a Kid to Kid franchise?

To be a successful Kid to Kid franchisee requires money, hard work, and patience. It isn't for everybody. While having a knowledge of children's products is a bonus, our computerized Kid to Kid Buyer program helps you to be successful even if you have never purchased children's products. If you are motivated, organized, enjoy meeting other people's needs and can diligently follow our system, you are a good candidate for a Kid to Kid franchise.

Take the next step and fill out our Personal Profile Online or download it and send it in by mail. A representative will contact you to schedule your first phone call. Or call us toll-free at 1(888) Kid-2-Kid (1-888-543-2543).