BusinessKids Convention

Panama November, 2023

Report of activities and agreements

Our International Franchise Convention took place in Panama City from

November 15th. to 20th., 2023, within the framework of the BusinessKids and
BusinessTeens International Congress.

It should be noted that the BusinessKids conventions represent the

opportunity to meet other franchisees. Although we can see each other
online, the possibility of being together in person is, in addition to being a
great motivation, the ideal way to learn from each other.

The central theme of the convention was the union of the franchise group
and the way to grow as a team in the current context, in a post-pandemic
moment where the brand has operations online and well as in person. T

A neuromarketing study carried out in 2023 showed that franchisees view

BusinessKids as an in-person brand with online activities, while the mothers
who were part of the study see the brand as an online brand with occasional
in-person courses. This is derived from the success of BusinessKids Online
during the pandemic and the success and penetration force that the brand
had during confinement, adding these factors to the fact that many
franchises stayed installed in their comfort zone, making money online, but
without in-person projection and a unseen brand is in danger of disappearing
in people's minds.

During the pandemic the market was captured in front of a device, but not
at this time.

When analyzing this situation, it is determined that the brand must have a
greater projection by working as a team both online and in person,
supporting each other and taking advantage of the experience of each of
the franchisees. To determine the area in which each franchisee can support
the most, an activity called “The Circle” was carried out led by Ingrid
Fleischer, franchisee from Guatemala, who has decades of experience in the
field of psychology and almost 10 years of experience in BusinessKids.
Due to this, she was chosen as the ideal person to carry out the
transformation of the BusinessKids franchise network into a network that works
together, regardless of the country of origin of each franchisee and taking
into account the areas of experience of each member of the franchise.

Here is presented the report of the workshop:

The Circle

Objective: Generate a conscious look in all BusinessKids franchisees to find

points of synergy that enhance human capital and collective talent for the
brand and the development of the brand's programs and workshops.

Find points of cooperation from the franchisees' proposals and their strengths
as well as with the strengths identified by the corporate office.

Methodology

To generate initial awareness, the dynamic was carried out applying the
theory of Creative Tension and thus each participant was able to visualize
their current state and their desired state in the business, and from there start
to generate action routes focused on developing scaled growth of
businesses individually and generate a strong growth impact for the brand
globally.

Using the “1 2 4 All” methodology, combined with the Points of You Punctum
tool, a dynamic of discussion and contribution was generated to offer
recommendations for best practices and commitment from all participants.

An interesting number of proposals were generated to be implemented and

taken up at a global level, with their corresponding regional adaptations.

Conclusions

The group was open and willing to contribute and recognize individual and
corporate efforts, as well as make proposals for tools and resources that allow
strengthening the individual business of
each franchisee, thus impacting the global strengthening of the brand.

After the session called “The Circle” we were able to see that the brand has
detected strengths of the franchisees that they also recognize in them, which
facilitates the process of assigning specific tasks for those who want to
participate.

Franchisees were asked to apply for different committees.

Lego Serious Play Dynamics, building the business of my dreams

The franchisees took a closed-door session with Liliana Rosas, a highly

experienced consultant.

This session served them to vent their concerns. This dynamic encouraged
teamwork.

Dynamic “Building a house”

This dynamic part of the BusinessKids methodology, coordinated by María del

Carmen Cabrera, had the objective of allowing the franchisees and the
franchisor to see the group's situation in a mirror.

We were able to observe that, although everyone has good ideas and works
hard, individually they are not reaching the levels that they could reach by
working as a team, so it is urgent to promote the union of the franchisees and
the franchisor, returning to online meetings in order to allow the group to
share ideas and good practices.

Conclusions

There is no standardization, no attention is paid to the brand's policies or the

corporate advice, which is why greater rigidity was contemplated in
compliance with the clauses of the franchise contract.

There is confusion about how to start and how to return to face-to-face, some
franchisees advise others, challenging the know-how that is obtained when
acquiring a franchise, which is that of the franchisor. The corporate office
knows the experiences, successes and setbacks of each franchisee.
It is essential to continue having a strong brand to face the market.

Among the labels that the market has placed on the brand and that it is
everyone's job to eliminate from their minds are the following:

o It is expensive

o They only play and do not learn

o My area is not for undertaking

o There is no continuity

o It is unknown

o The schedule doesn't work for me

o There aren't enough children

o It's far away

o What methodology is it?

o I can only do one hour

o Nothing happens here

o They put the children to work

o They don't learn

o They violate the rights of the children

o My son doesn't care like to learn

o They exploit children

o Anyone can do entrepreneurship

o I can teach my kid because I created a company

o It is not for children

o They steal childhood

o It is useless

o It is expensive to entertain children

o It is strange

o My son already has many extracurricular activities

o I prefer sports

o It takes away innocence

o My kids don't have time

o Children shouldn’t work

o I didn't know they could re-enroll

o Who supports the methodology?

o Who certifies them?

This shows that we are not, as a group, communicating the BusinessKids

message in the right way and that puts us in a vulnerable situation.

The objections have no basis but, if part of the market sees them, we have to
have the strength as a group and the tools to respond to these objections.

Below are the actions that the franchisor will take to help franchisees to
overcome these objections, as well as the commitment that will remain on
the part of the franchisees once they sign this minute, a signature that will be
mandatory, according to the clauses of their contracts:

It is expensive

Franchisor

Authorization of discounts up to a maximum of 30% with the following

conditions: 10% registering 2 people, 15% registering 3, 20% registering 4, 25%
registering 5.

Plus 5% presenting a promotional flyer or going to an event.

Franchisee

It is important to have the flexibility of schedules required so that children go

two hours a week and not 4, without leaving the option of 4 hours, which
allows the time in which they undertake to be shorter.

Believe in what we do.

Know how to sell.

Understand customer needs.

They only play and do not learn

Franchisor

Greater number of online events in which we explain what the methodology

does for children and adolescents.

Greater participation of the brand's psychologists in these meetings.

Question and answer sessions for parents, teachers and school principals.

Franchisee

Put an expert consultant in each area and not try to do everything with one
or two people.

Respect the methodology 100%. It's proven.

Explain to parents that the process must last 80 hours and that is when they
will see the results.

My area is not for entrepreneurship

Franchisor

Support the franchisee in events with their community.

Show more success stories and testimonials from alumni.

Franchisee

Prepare him/herself regarding the importance of BusinessKids and

BusinessTeens and share the franchisor's press notes.

Let parents enter and give a like to the corporate pages so they can acquire
a more global vision of the brand.

Approach the government.

There is no continuity / I did not know they could re-register

Franchisor

Allow franchisees to talk about levels.

Spread the importance of a 320 hours program.

Franchisee

Explain from the moment of the sales presentation that it is a 320-hour

program in its most complete form.

It is unknown / Who supports them? / Who certifies them?

Franchisor

More press notes, more paid publications and more communication on

social networks on topics that position us as experts.

Franchisee

Make the corresponding efforts so people in the area get to know the brand.

Invest in events and local advertising

The schedule does not work for me

Franchisor

Invite students from different areas to online groups providing different

options and taking advantage of classes in different schedules organized by
other franchisees.

Franchisee

Open more hours and understand that BusinessKids is a full-time business.

There are not enough children in the groups

Franchisor

Invite students from different areas to online groups in schedules organized

by other franchisees where parents could see more children.

Franchisee

Provide scholarships to certain children until the center is known in the

community.

It is far

Franchisor

Invite students from different areas to online schedules organized by others.

Franchisee

Open more locations in fixed locations or by the hour.

What methodology is it?

Franchisor

Greater dissemination of the scope of the BusinessKids methodology.

Franchisee

Study more about the methodology by taking part in all the online
transmissions in order to explain to parents, teachers and school directors that
it is our own methodology, original and registered, with proven results and not
a copy of another educational system.

Emphasize that it is an extracurricular activity.

They put children to work / violate children's rights / They exploit children

Franchisor

Send the presentation that explains this topic in depth so that the franchisee
has elements to contradict this false belief.

Franchisee

Prepare yourself on the subject to be able to respond to this objection

Emphasize that it is an extracurricular activity.

They don't learn / It's expensive to entertain children

Franchisor

Help the franchisee choose and hire the right consultants, experts in each
subject.

Greater filters when choosing franchisees.

Make videos with tips for each dynamic.

Franchisee

Find expert consultants in each subject and do not try to provide the entire
program with one or two people.

Explain to parents that the result is seen after 80 hours of the program.
My son does not like to learn

Franchisor

Emphasize the importance of keeping children away from technology and

talk about children's entrepreneurship as a source of motivation for life; This
way, interest in learning will be awakened, with the vocation as the driving
force.

Franchisee

Motivate children and be assertive in the auction of professions.

Anyone can teach entrepreneurship / I can teach my kids because I created

a company.

Franchisor

Spreading more intensely than entrepreneurship is a practice that must, like

any discipline, be taught by experts.

Address this topic in the press in greater depth.

Explain the influence of parents on children's lives and how they can affect
the process, more than help them, as kids can try to follow their parents
dreams instead of their own.

Franchisee

Spread this locally.

It is not for children / they steal childhood / it is strange / it takes away

innocence / children shouldn’t work

Franchisor

Spreading more intensely than entrepreneurship is something for children

and the origin of the entrepreneurial spirit.

Show more success stories.

Explain to parents that the world has already changed, that children will
require, for the future, the tools that BusinessKids gives them and that self-
employment will be the norm.

Explain that it is like any discipline and that the sooner they start the better,
that children's brains learn to undertake naturally and that the more practice,
the greater the experience.

Tell the market that it is a model designed especially for children, from their
thinking and according to the stage of development they are in.

Show with success stories that, far from taking away innocence, it lengthens
childhood.

Spread the difference between child entrepreneurship and child labor or

exploitation (PowerPoint).

Franchisee

Spread all this points locally.

My son already has a lot of extracurricular activities / I prefer sports / he

doesn't have time

Franchisor

Spread more intensely the importance of children's entrepreneurship.

Show in the press and social networks that BusinessKids is an extracurricular

activity as important as others.

Explain to parents that the world has already changed, that children will
require the tools that BusinessKids gives them in the future and that self-
employment will be the norm.

Explain that it is like any discipline and that the sooner they start the better,
that children's brains learn to undertake naturally and that the more practice,
the greater the experience.
Franchisee

Spread all this locally.

You can see part of the Convention activities in this video:

https://youtu.be/enqItW4uloM

After analyzing the results of the dynamics, the franchisor decided to

implement the following committees:

1.- Standardization

This committee will be in charge of proposing to the franchisor the actions

that are required for BusinessKids to improve the face-to-face image in all
areas where there is a franchise.

As part of these actions, the opening of a physical center will be mandatory

before January 15th., 2024 for all franchisees who have been in the brand for
more than 6 months and on the date agreed in the complementary and
explanatory annex to their respective contracts, for the new ones.

A board will be placed in each location with the legend: BusinessKids

Franchise with the corresponding year, in order to avoid piracy and give
confidence to clients. This design will be sent at the beginning of 2024 to
franchisees who are up to date with all their payments and will be withdrawn
at the time of closing the franchise, in the event that such a situation arises.

Another measure will be the creation of an e-learning with questionnaires

that every franchisee must approve, in this way knowledge of the
fundamental elements of the brand will be standardized.

2.- BusinessKids Media

The following was agreed:

• Revive the BusinessKids Radio channel.

• Continue with the podcasts implemented after the 2022 convention
proposal.
 • YouTube channel for BusinessKids events and interest capsules.

All actions will have English and Spanish as official languages and there will
be publications subtitles sent by franchisees from countries with other
languages.

3.- Business agreements

A committee will be formed to seek agreements with companies and

institutions, locally, nationally and internationally, giving priority to global
companies.

As part of these actions, the program called: brigade for the conservation of
children innocence will be carried out and BusinessKids will join different
brands to return children to traditional play, keep them away from violence
and keep them out of social movements; likewise, the ecological discourse
will be encouraged to be towards proactivity and not towards fear. ´

4.- Transmission and training in the psychological foundations of the

methodology

The brand will promote the importance of the cognitive development of

children and young people.

Only qualified psychologists and pedagogues with at least two years'

experience in the brand will be accepted on this committee.

Applications for congress and convention organizers were not accepted,

since it would be unfair if those who applied had to bear the expense of
advance payments for the events, which are usually paid by said organizer.
The franchisor will be the organizer of the event together with the host.

BusinessKids Events

It was agreed that the next venues for the congress and franchisee’s
convention will be:

2024 Manzanillo in the state of Colima, Mexico, Liliana Alfaro’s franchise.

2025 Bucaramanga in the department of Santander, Colombia, Mónica
Becerra’s franchise

These events will be carried out under the following rules, the same ones that
were presented at the convention:

BusinessKids Congress Rules

• BusinessKids congresses will not be tourist trips, they will be congresses

(read BusinessKids magazine which explains what an event of this type
is).
• They will take place in the hotel facilities at least 70%.
• If there is a visit, it will be exclusively to a place related to the business
topic to reinforce learning about this pillar of the brand.
• For tourism, an extension may be organized in the following days, after
the event.
• The franchisor must choose or, where appropriate, validate the
suppliers.
• The host franchisee may suggest suppliers.
• The host must take to the congress a minimum of 20 children, whether
their parents pay, they enter through sponsorship or the payment is
made by the host himself.
• The host franchisee must sign a commitment letter when requesting the
venue
• Any franchisee who wants to host an event must have a minimum of 2
years in the brand with uninterrupted operation.
• In the event that a supplier chosen by the host requires a front payment
on a date prior to what was decided by the franchisor, said payment
must be advanced by the host.

Languages

Starting in January 2021, the drives will be separated so that each one can
search for content in English or Spanish separately.

All events will have subtitles for those franchisees who acquired an extra
Zoom league in the month of October 2023 or who acquire it before
December 22, 2023.
In more relevant events, simultaneous translation will be available.

Any important publication will be shared in both languages both in the chat
called BusinessKids Social and in the one called BK English.

Announcements will be published in the franchisee chat. A Facebook group

called “My child, an entrepreneur” will be created, whose language will be
English and each country with a language other than English or Spanish must
create the same group for its own community of parents.

2024 Strategies In order to achieve the following objectives:

• Global expansion

• Increase in units

• Structure

• Growth of brand image

• Greater market share.

The following strategies will be carried out:

Incentives to franchisees for the sale of franchises in other territories

(forgiveness of annual fee or 5% commission on the amount of the basic
franchise)

Periodic meetings with master franchisees

Communication will be in 2 languages: English and Spanish

Rigidity in the collection of annual fees or payment terms, in accordance

with the clauses of each contract, leading to the termination of said
instrument in the event of non-compliance.

Organization of online meetings every two months in order to promote union

between franchisees

Respect between franchisees and good professional practices

Organization of regional events

Semi-annual zonal meetings

Franchise structure with mandatory measures, in accordance with the needs
that are presented to achieve the stated objectives

It will be mandatory to give face-to-face classes, at least one published

schedule for an 80-hour course

Formation of the aforementioned committees

Annual fees

In order to encourage the investment of each center in its own growth, the
franchisor determines to give the following benefits in the payment of the
next annual fee, starting December 1, 2023 and until the date of the following
convention:

Exclusive for attendees of the Panama 2023 convention:

1.- 30% discount for having attended the convention on payments made by
bank transfer and received before December 18th, 2023.

In case of payment by credit card the discount will be 25% and 20% if you
choose 6-month payment without interest.

2.- 20% discount for having attended the convention on payments made by
bank transfer and received before December 22nd, 2023.

In case of payment by credit card the discount will be 15% and 10% in case
of choose 6-month payment without interest.

3.- 20% discount in centers that operate in person and have a BusinessKids
sign on the street or inside a shopping mall, which can be added to point 1
or point 2.

If you opt for points 1 and 2, and want to accumulate the discount of point
3, a letter of commitment to compliance with point 3 may be signed, placing
said sign and opening an in-person group before January 15th, 2024.

For those who did not attend the Panama 2023 convention:

4 .- 6 months without interest or 10% discount paying before December 19th,

2023 by bank transfer.
In case of payment by credit card in a single payment, the discount will be
5%.

5.- 20% discount in centers that operate in person and have a BusinessKids
sign on the street or inside a shopping plaza.

If you opt for point 4 and want to accumulate the discount in point 5, a letter
of commitment to compliance with point 3 may be signed, placing said sign
and opening groups before January 15th, 2024.

These discounts cannot be granted. on a date later than that mentioned in

each promotion, since they are related to brand agreements for the benefit
of the franchise network, without any alteration to the services provided to
the group.

Additionally, until December 20th, 2024, territory expansions and the scaling
of individual franchises to master franchises will be reactivated at a
preferential price, which can be consulted in the legal area of the helpdesk
(businesskidshelpdesk.com).
Name and signature of the franchisee