- A man from California wants to franchise his graffiti-removal business.
- In the Tank, Kevin O'Leary, Barbara Corcoran, Kevin Harrington, Daymond John, and Robert Herjavec were presented with several business pitches. Here's a flowing summary of what transpired:
Kwame Kuadey from Gift Card Rescue: Kwame, hailing from Ghana, was recently laid off from his US job due to the recession. He sought $150,000 for a 30% stake in his business. His company focused on buying unused gift cards at a discounted rate and reselling them on their website. With $120,000 worth of gift cards sold in the last year alone, Kwame attracted interest from Amazon. However, Daymond, Barbara, and Kevin H. were not convinced. Kevin O. offered $150,000 for a 50% stake, which Kwame countered with 40%. O'Leary stood firm at 50%, and Herjavec proposed a partnership offering $200,000 for a 50% share alongside O'Leary. Kwame accepted the joint offer.
Gina Cotroneo from Soul's Calling: Gina, from Dallas, Texas, pitched her business seeking $150,000 for a 25% stake. Her company sent accessories with positive messages and energy. Gina's personal story of surviving an attack gained national attention. Despite $29,000 in sales over two years and a $100,000 personal investment, O'Leary deemed the business worthless. Daymond, Barbara, and Kevin H. followed suit in opting out. Herjavec advised Gina to rethink her business.
Dan Claffey from Coffee Brand Gifts: Dan requested $300,000 for a 40% stake in his business. He acquired copyrights for famous coffee brands and planned to merchandise them in various products. However, his lack of sales and the absence of orders led Barbara, Daymond, and Kevin H. to opt out. O'Leary criticized Dan for wasting his time, resulting in Dan walking out.
Paul Watts from Graffiti Removal Services: Paul aimed to franchise his Sacramento-based graffiti removal service in other cities. He sought $350,000 for a 15% stake. While Paul had a biodegradable graffiti remover, he purchased it from a manufacturer. The Sharks had concerns about Paul not having sold any franchises and the potential for easy replication. Barbara opted out due to uncertainty about the franchise deals with the government. Harrington shared a similar sentiment, and Daymond believed the business model would fail once the product became popular and the manufacturer sold retail. Herjavec and O'Leary offered $350,000 for a 75% stake, but Paul rejected the deal. O'Leary expressed frustration, and Paul left the negotiation.
Amy Feldman and Allison Costa from Coverplay: The entrepreneurs sought $350,000 for a 15% stake in their company, which provided slip covers for play-yards to protect children from dirt and grime. Their customers included retail consumers, hotels, playschools, and more. With $200,000 in sales over 12 months and investments totaling $100,000, their business attracted interest. Harrington couldn't sell it on infomercials and dropped out. Barbara offered $350,000 for 40% but solely for product development, excluding salaries and parties. Daymond proposed $350,000 for a 65% stake, offering assistance to other potential owners (POs). Amy countered Barbara's offer, requesting 30% ownership of the patent along with 10% ownership of the business. This revelation surprised all the Sharks, as they were unaware that Allison owned the patent. Consequently, all offers were withdrawn. Allison decided to reintegrate the patent into the company. O'Leary, Daymond, and Herjavec countered with a joint offer of $350,000 for a 51% stake. Barbara remained at 40%, and a deal was struck with her.
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