Shark Tank US | Brothers Pitch Pips & Bounce To Reconnect With Their Inner Children

[Music] [Applause] next up is a business that hopes to bring people [Music] together my name is Michael and my name is Eugene we're brothers from Portland Oregon and we're here to raise $500,000 for 10% of our company Pips and bounce Shar we've all got that one special thing that brings us right back to our happy place for us it's pingpong we grew up playing a NeverEnding game in our basement recck room in Appalachian Kentucky I pretty much went undefeated against this guy well after we grew up and realized just how disconnected we all had become we went back to our Fondest Memories and created Pips and Bounds a unique ping pong Social Club inspired by our childhood fun a gathering place where everyone can get together to eat drink and ping some pong complete with 100% authentic Oak panel walls great tunes and throwback posters Mark looking good that was last week sharks it's now time to franchise folks from all over have been asking us to give them a away to bring the fun of Pips and bouns home with them so sharks we invite you to enjoy one of our signature pong tailes and join us as we create a new family of entrepreneurs together with pips and bouns who's in so there must be a profitable business here if you want to franchise it why don't you walk us through the numbers uh so in our last three fiscal years we started off with $974,000 in revenue and then the next year uh we pulled in 1,33 uh the year after that 950 so we're kind of flat all right how many square feet is the place our first store uh is 4,500 ft so if you're trying trying to sell me a franchise you can make a claim that you make at least you know a million bucks a year what do you bring to the bottom line in the typical operation 4500 ft we're at a 7% profit margin we've been building it with this goal of franchising it in mind and what was your history prior to this uh I was in New York City I was doing a business development marketing for big international law firm now what's your background so I spend my days saving the world through clean energy policy um but I spend my nights and weekends trying to bring people together through the joy of pay P let's go back to the business for a second because I invest in in in franchise models I'm pretty familiar with how it works you're making a million let's keep the numbers even all right okay you're making 7% for yourself $770,000 is being extracted from the business on the million dooll model now in the franchise business you want to get a royalty of 5 to 7% for everyone you sell so the business has to make a minimum of 14% free tax the person that franchises from you is going to pay you maybe 25 or 50,00 up front to get all of your knowledge on how to set it up so it's got to make 14% year in year out otherwise there's no incentive for them to do this you're nowhere near that yet you have to get all that worked out so that I am so interested in doing this that it's made easy for me I I WR you the 25,000 so my tent tables arrive my paddles arrive my balls your own to sleep no I'm not I'm just saying no he's right though he's he's exactly right it does it's not it's not going to work it's not franchise numbers okay not only that do you have more than one unit yet so we had just signed the lease for our second unit that's going to be going up uh in Minneapolis Minnesota you guys you guys own it this is a corporate location what capital do you have to spend to set it up how much we're setting that up with a million budget a million dooll budget yes so we're building our second location to be a showroom a flagship a training center for our franchises we're not building this as the cookie cutter go EXA guys and that's a big part of the point you're too early you haven't proved that you can run a multi-unit environment yet you haven't proved that you can make enough money to support a franchise fee and make enough money for an owner to get a return on it so for those Reasons I'm out okay guys I love the story I love the drink I hate ping pong I'm out wow thank you drink you know honestly I love ping pong I think it's really fun but I agree with Kevin I think it's way too early I wish wish the best but I'm out well it seems early to you but all of you are entrepreneurs you've all built businesses you all had to say yes to things that you weren't yet ready for you all had to take that leap of faith well you do that as an entrepreneur not necessarily as an investor that's the challenge it's not that we don't think you can do it but you haven't shown that it's replicable yet basically you're telling me I got to spend a million that's what you're doing on your your store the million is for the showroom that's a really bad showroom it shows me it's a bad franchise it's bigger than what it needs to be because we're going to be training our franchisees and we're what we're doing is we're trying to bring people together you have to tell me as a franchisee I'm going to make 20% on it now I'm interested in pimps and bouns but you're not telling me that at all you don't have that model worked out yet guys the numbers are very very bad not weak I'm intrigued I like the concept of going somewhere and not just going there to eat I like the activity element I mean you see the ice cream Museum doing experiences you see uh the escape room so people are paying for that it's definitely a proof of concept but I wish there was a little bit more there sorry I'm out so think about it this way P has been around how much your own money have you put into this so we've bet every dollar that we have how much is that we put in $300,000 and why do you think it's worth 5 million today the way we look at it is over 100 units which is a conservative estimate over the 150 units of Metropolitan statistical areas we can address but you have one unit we're valuing the franchise business we're not valuing our unit oh I have to punish you I have to punish I knew that was coming I'm holding back please hold me back we look at a net present value of over $100,000 per location and that's guys come on Mark what would you approach our valuation at what is it worth and how you're not ready to franchise if you and I invested in Pips and Bounds to start off the whole thing right and you said Mark should we franchise yet you know what answer would be hell no cuz you're not ready yet so if one of my friends came to me and said Mark Pips and balance you're an investor right you love the place we went there we had so much fun should I buy a franchise you know what my answer would be tell them Maria hell no exactly I only to be louder you get my point what's it worth to buy out $7,000 cash flow from a retail operator probably four or five times that that's all you're worth so your miles from 5 million bucks presentation was horrible you're nice guys I hate this a lot I'm out well you know look I think we're all out guys thanks guys thank you good luck guys thank you I hate ping pong and now I hate ping pong players wow you know if we can count every time someone said no to us every Bank every investor every accountant who said no to us we wouldn't be here what five more NOS take it yeah

Channel: Sony Pictures Television

Views: 242,328

Keywords: Shark Tank, Shark Tank US, Shark Tank USA, Shark Tank America, American Shark Tank, Shark Tank Pitches, Shark Tank bad pitches, Shark Tank Best Pitches, Shark Tank Covid, Shark Tank Season 12, Mark, Blake Mycoskie, Kevin, Lori, Daymond, mark shark tank, kevin shark tank, lori shark tank, daymond shark tank, mr wonderful, shark tank moments, shark tank deals, shark tank pitch, shark tank best pitch, kevin oleary, mark cuban, lori greiner, Barbara Corcoran

Id: MjvzT8TjL2s

Length: 7min 50sec (470 seconds)

Published: Sat Jan 13 2024