10 Best Franchises to Buy from 'Shark Tank'
Full article on Forbes
Franchising is a tried-and-true business model , accounting for more than 744,000 businesses across the country or about one in 12 enterprises. Over the past eight seasons, the celebrity investors on ABC’s hit business reality show Shark Tank heard pitches from dozens of franchises. Some sported a robust history while others were still in diapers.
Very few of them made it to Entrepreneur magazine’s Franchise 500 list, a comprehensive database of leading U.S. franchises, their financial requirements and fees. Here’s a look at the top 10 franchises featured in the list that have appeared on Shark Tank, the holy grail of public relations for small businesses.
Wine & Design
Initial Investment: $52,800 - $105,000
Initial Franchise Fee: $25,000
Ongoing Royalty Fee: 6%
Ad Royalty Fee: 2%
Wine & Design Burbank franchisee Lisa Flette; Kevin O'Leary, Shark Tank investor; and Harriett Mills, founder and CEO of Wine & Design.Jeff Branch, Workshop Media for Wine & Design
Wine & Design Burbank franchisee Lisa Flette; Kevin O'Leary, Shark Tank investor; and Harriett Mills, founder and CEO of Wine & Design.
Imagine hosting Sally’s bachelorette party for a gaggle of women channeling their inner Picassos as they stare at a hunk modeling his birthday suit. They paint while you pour pinot noir. It’s a dirty job. But somebody has got to do it.
Harriet and Patrick Mills started Raleigh, N.C.-based Wine & Design -- a chain of paint-and-sip studios -- in 2010 and began franchising only a year later. It has grown from one company studio to 77 franchises -- all women owned. During Shark Tank’s eighth season finale, May 12, Kevin O’Leary offered the couple a $350K loan at 12% interest and $150K for 10% equity. The deal went through, but the actual terms are different than what they agreed upon during the episode.
“It's a very successful model because if you can get more franchisees to open faster, everything works for everybody,” O’Leary said a recent interview. “I want the franchisees to become rich. That's the whole point of this.”