EPISODE 12
ENTREPRENEUR: Michael and Babz Barnett
PITCH: Romp N' Roll, a chain of children's play and learning centers
ASKING FOR: $300k for 10% stake in his business.
BEST PART OF THE PITCH: They have 10 Romp N' Roll locations from Pennsylvania to Puerto Rico. They've already done $4 million in revenue over the past five years. There are classes for gym, art and music all under one roof. Their tagline: "Nurture the genius. Unleash the goofball."
DO THE SHARKS BITE? Kevin O., Kevin H. and Daymond are pretty much out right away. Barbara had a bad experience at Gymboree, so she's out, too. Michael and Babz would like to respond to the issues that all the fleeing sharks have with their company. This bugs Robert. He's still in and yet they seem to be focusing their energy on those who are out. Nevertheless, he offers to give them the $300k for 51% of the business.
RESULT: As the Barnetts discuss the offer in private, Kevin O. offers to go 50-50 with Robert. When Michael and Babz return, they make it clear that they do not want to give up control of their company, so they counter with an offer of 20% equity. But Robert and Kevin just can't Romp N' Roll without control. They are out.
WANT TO KNOW MORE: Visit www.rompnroll.com .
