Megan Reilly and Sarah Nuse
PITCH: Tippi Toes, a children's dance company
ASKING FOR: $30,000 for a 5% stake.
BEST PART OF THE PITCH: Two sisters parade children into the Shark Tank to demonstrate the dancing and music they use to get kids moving and grooving. They've been franchising their business since 2009. So far they've sold seven franchises for a $30,000 buy-in with a monthly royalty fee. They made $29,000 in profit last year. The sharks are impressed to learn that Megan and Sarah collect interest when they finance the buy-in fee for investors. Kevin O'Leary wants these ladies to come work for him! Their dream is to build a brand and eventually get into DVD sales.
DO THE SHARKS BITE? Daymond believes the ladies will be just fine without him, so he's out. Robert thinks the sisters are trying to take too big of a leap, so he's out. Kevin offers $50,000 for a 51% stake. Barbara wants 20% of the business for $60,000. In order to avoid a bidding war with Barbara, Mark makes a proposal. If he says yes to their counteroffer, they must say yes to him immediately.
THE RESULT: The sisters want $100,000 for 30% of their business. "Done!" Mark closes the deal before Barbara can get a word in.